Comment by bluGill
17 days ago
The big thing traditional institutions give you is logs of everything. Sure if I get your account number I can take all your money - but there are traces of that and so it is easy to arrest me after the fact.
Don't give out your account numbers, there will be a lot of hassle should an evil person get it. However you have a reasonable change of getting your money back in a couple years. (this is also why you get warning about some countries - a few will not cooperate with traces and so the money is lost)
> Don't give out your account numbers
Is that a US thing? In Europe, companies have their account numbers on their letter heads and websites, and people are quite comfortable giving out their account numbers.
https://www.quelle.de/service-hilfe/bezahlung-finanzierung/k...
That's strange because all you need for direct debit authorisation is the account number and name, and a PNG image of a physical signature.
In Japan, that authorisation needs to come together with an official certification, something that’s only valid for 3 months and you have to get it yourself from the local justice branch office.
Why don't we see more fraud using this technique?
That’s definitely not the case in Europe. There’s no way to start a debit operation out of my account other than:
1. Something electronic that kicks of the thing where I need to enter the “ID codes” from device or app; 2. Being present at the bank and having been ID’d;
5 replies →
So I can walk to a bank, speak to the teller, and withdraw from any account number by showing them that signature? I think not
Surely just knowing someone's account number can't be enough? Sweden's biggest bank uses your national identification number (equivalent to social security number) as your checking account number, and Sweden's national identification numbers are public information.
I don't know how it works in Sweden. Some accounts have more security. In the end if I know the right numbers (which may not be your national ID) I could drain your bank account - but I would be caught if I tried so even hardened criminals won't attempt it.
There's also the Federal Deposit Insurance Corporation (in the US).
FDIC is great but it really only protects against bank insolvency. It doesn't come into play if money is fraudulently transferred out of your account.