Friday, April 15, 2016

Can't the account information on my checks be easily used for fraud? - Personal Finance & Money Stack Exchange

Can't the account information on my checks be easily used for fraud? - Personal Finance & Money Stack Exchange

Yes, and there are almost no checks (no pun intended) on people pulling money from your account using a routing number. It is an EXTREMELY insecure system. If you want a real Halloween scare, read this article: Easy Check Fraud Technique Draws Scrutiny.

Unfortunately you just have to live with it.

If you are curious why this loophole is allowed to continue, consider how hard it is to close it without undermining the convenience of checks. Short of you going to the bank with each person you write a check to and showing ID to validate the transaction, I don't see how you could continue to use a negotiable instrument like this without such a security hole.

The ultimate answer is going to have to be replacing checks with other means of payment.


Read full article from Can't the account information on my checks be easily used for fraud? - Personal Finance & Money Stack Exchange

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