Bank account was hijacked

[zow2]

I was a victim of ACH fraud a few days ago. Several thousand was taken out of my savings via ACH debit. Bank is investigating but money is long gone. They are sending me an affadavit. Does anyone have experience with this? IS my bank obligated to replenish my account? Does FDIC insured mean I am ok? The bank is being a bit vague on exactly when/how I will get my money back. Your thoughts/experience welcome...

[IDBillzFan]

Damn, that sucks. It has always been my understanding that while funds charged to a stolen credit card get quickly erased without holding you responsible, whatever is stolen from your bank account is, as you mentioned, long gone and not replenished by the bank.

 

I think the FDIC ensures you if the bank goes to hell, not if someone takes your money.

 

Really sorry.

 

Editor's note: I may be wrong about your money being long gone. It seems you have to report it within a certain time period, and based on the type of fraud, your money may be recoverable.

[Fezmid]

That does suck...

 

Regarding LA's point, that's why I harp on people to never use a debit card -- even having one is dangerous, since not every place (gas, for example) requires verification.

 

Keep us posted on how it turns out.

[Chilly]

That does suck...

 

Regarding LA's point, that's why I harp on people to never use a debit card -- even having one is dangerous, since not every place (gas, for example) requires verification.

 

Keep us posted on how it turns out.

 

Some banks give fraud protection though, its up to the bank. Bank of America, for example, provides such protection.

[Fezmid]

Some banks give fraud protection though, its up to the bank. Bank of America, for example, provides such protection.

 

But what does the protection cover? If your mortgage payment bounces because someone cleans out your account, will they cover any bounce fees and help fix your credit report? I don't know, just asking.

[Buftex]

I was a victim of ACH fraud a few days ago. Several thousand was taken out of my savings via ACH debit. Bank is investigating but money is long gone. They are sending me an affadavit. Does anyone have experience with this? IS my bank obligated to replenish my account? Does FDIC insured mean I am ok? The bank is being a bit vague on exactly when/how I will get my money back. Your thoughts/experience welcome...

 

 

I had this happen to me twice...around 2000 and, again, in 2002. My bank was/is Wells Fargo. Both times, they gave me every cent back, and, in fact, gave me a $500, interest free, loan so I wouldn't be penniless, while they investigated. In both cases, my money was was taken via Paypal. It sucked, because the investigation took about 2-3 weeks, if I recall, but, in the end, didn't end up costing me anything. Also, I got a $100 credit from Paypal, for my hassles. The first time it happened, the bank actually contacted me, before I had even noticed that my money was gone. In both instances, my money was stolen right on, or about, payday, so it was as big a balance as I ever had...about 2,000-3,000 each time.

 

One stickey thing though, the first time it happened, I incurred three overdraft fees, which the bank reversed. However, it took some finangling to get the overdraft fees off of my credit report.

 

I still use Paypal, and I pay most of my bills on-line, or via phone (if there is no extra charge), but my experience has made me a little more understanding as to why some people still don't like doing their financial business on-line. To this day, I am not sure how my two situations happened...if it was me being careless, or just clever crooks. Likely a little of both.

 

My hunch tells me, you may be inconvenienced for a few weeks, but your bank will likely re-imburse you in full. I am not sure if they are obligated, but I suspect they will not want to piss you off, any more than banks normally do. I hate Wells Fargo, and all their little fees, but I do appreciate the way they took care of this. Good luck. I think it will work out okay for you.

[Chef Jim]

I had this happen to me twice...around 2000 and, again, in 2002. My bank was/is Wells Fargo. Both times, they gave me every cent back, and, in fact, gave me a $500, interest free, loan so I wouldn't be penniless, while they investigated. In both cases, my money was was taken via Paypal. It sucked, because the investigation took about 2-3 weeks, if I recall, but, in the end, didn't end up costing me anything. Also, I got a $100 credit from Paypal, for my hassles. The first time it happened, the bank actually contacted me, before I had even noticed that my money was gone. In both instances, my money was stolen right on, or about, payday, so it was as big a balance as I ever had...about 2,000-3,000 each time.

 

One stickey thing though, the first time it happened, I incurred three overdraft fees, which the bank wiped reversed. However, it took some finangling to get the overdraft fees off of my credit report.

 

I still use Paypal, and I pay most of my bills on-line, or via phone (if there is no extra charge), but my experience has made me a little more understanding as to why some people still don't like doing their financial business on-line. To this day, I am not sure how my two situations happened...if it was me being careless, or just clever crooks. Likely a little of both.

 

My hunch tells me, you may be inconvenienced for a few weeks, but your bank will likely re-imburse you in full. I am not sure if they are obligated, but I suspect they will not want to piss you off, any more than banks normally do. I hate Wells Fargo, and all their little fees, but I do appreciate the way they took care of this. Good luck. I think it will work out okay for you.

 

I have Wells Fargo too but I like your story. Fees be damned if they're going to help you the way they did. I love the way people B word about fees. They want the lowest possible fees but B word when they get the lowest possible service.

 

To the original poster all I can say is that sucks and Marc is correct FDIC will only cover bank insolvency.

[drnykterstein]

Wow, this is a good reminder of security.

 

/me goes and changes a few account passwords

[zow2]

Thanks for the responses. It is through Bank of America and we are talking several thousands...pretty much my family savings. Sounds like the criminals ACH a buck or two into random account numbers until they hit one that is a "live" account. Once they do, they debit the account the other way and steal the money. My money went into a real person's account at a reputable bank. At this point BOA has to recoup the money from the criminals bank. I'm furious that BOA would allow an ACH transfer for that kind of money out of my account and into some random persons hands.

[Buftex]

Thanks for the responses. It is through Bank of America and we are talking several thousands...pretty much my family savings. Sounds like the criminals ACH a buck or two into random account numbers until they hit one that is a "live" account. Once they do, they debit the account the other way and steal the money. My money went into a real person's account at a reputable bank. At this point BOA has to recoup the money from the criminals bank. I'm furious that BOA would allow an ACH transfer for that kind of money out of my account and into some random persons hands.

 

 

 

I feel really stupid asking this, but what does ACH mean?

[Chef Jim]

Automated Clearing House.

 

Fancy way of saying wired.

[KD in CA]

Thanks for the responses. It is through Bank of America and we are talking several thousands...pretty much my family savings. Sounds like the criminals ACH a buck or two into random account numbers until they hit one that is a "live" account. Once they do, they debit the account the other way and steal the money. My money went into a real person's account at a reputable bank. At this point BOA has to recoup the money from the criminals bank. I'm furious that BOA would allow an ACH transfer for that kind of money out of my account and into some random persons hands.

 

But if you didn't authorize the outgoing wire, I don't see how your bank can not be at fault. But I'm not a treasury guy and probably rely on my assumptions too much, personally and professionally.

 

One thing I have done recently was to separate my bill paying account from my brokerage account.

[Bmwolf21]

But what does the protection cover? If your mortgage payment bounces because someone cleans out your account, will they cover any bounce fees and help fix your credit report? I don't know, just asking.

We had one incident when we lived in Florida - a clerk double-charged our debit card - and while it was only $10 they put the money back in the next day. When I talked with a BoA's in-branch CSR she claimed they will help you with bounce fees and get the money back in your account ASAP, but I don't know about credit report issues.

 

I had this happen to me twice...around 2000 and, again, in 2002. My bank was/is Wells Fargo. Both times, they gave me every cent back, and, in fact, gave me a $500, interest free, loan so I wouldn't be penniless, while they investigated. In both cases, my money was was taken via Paypal. It sucked, because the investigation took about 2-3 weeks, if I recall, but, in the end, didn't end up costing me anything. Also, I got a $100 credit from Paypal, for my hassles. The first time it happened, the bank actually contacted me, before I had even noticed that my money was gone. In both instances, my money was stolen right on, or about, payday, so it was as big a balance as I ever had...about 2,000-3,000 each time.

 

One stickey thing though, the first time it happened, I incurred three overdraft fees, which the bank reversed. However, it took some finangling to get the overdraft fees off of my credit report.

 

I still use Paypal, and I pay most of my bills on-line, or via phone (if there is no extra charge), but my experience has made me a little more understanding as to why some people still don't like doing their financial business on-line. To this day, I am not sure how my two situations happened...if it was me being careless, or just clever crooks. Likely a little of both.

 

My hunch tells me, you may be inconvenienced for a few weeks, but your bank will likely re-imburse you in full. I am not sure if they are obligated, but I suspect they will not want to piss you off, any more than banks normally do. I hate Wells Fargo, and all their little fees, but I do appreciate the way they took care of this. Good luck. I think it will work out okay for you.

I'm very surprised that PayPal was so cooperative. I've read and heard nothing but bad things about the way PayPal deals with customer service, complaints, fraud, etc. There's a real nice PayPalSucks website that talks about a lot of the issues with PayPal. After reading through that one and a couple others I took my bank account info off my PayPal account and use my credit card to fund it. That way I theoretically have MasterCard or Visa in my corner if PayPal really gives me problems.

[Buftex]

Automated Clearing House.

 

Fancy way of saying wired.

 

 

Thanks!

 

Part of the reason, I think the bank bent over backwards for me (something they never did before, or since) I am thinking is that they are in some part, responsible for authorizing the fraud. Not that they did it on purpose mind you, but there had to have been a hole in their security system that allowed it to happen, so, they feel that I (or zow2) might have a legitmate beef with them, that could make things nasty for them, if we pursued it. Just my hunch. If there was one thing I didn't like about the way Wells Fargo handled my cases, was that they never really told me what happnened. I never knew if I just did something really stupid (something I am sure you wouldn't put past me!), as a newbie computer geek, Paypal screwed the pooch, or they fugged up. I asked them to explain to me, what happened, but they never did. I was rougher with Paypal, which is why I suspect they gave me a $100 gift certificate.

[Tux of Borg]

In my experience with FTC fraud, most banks/credit cards will reimburse you if you have a police report on file.

[Fan in San Diego]

Thanks for the responses. It is through Bank of America and we are talking several thousands...pretty much my family savings. Sounds like the criminals ACH a buck or two into random account numbers until they hit one that is a "live" account. Once they do, they debit the account the other way and steal the money. My money went into a real person's account at a reputable bank. At this point BOA has to recoup the money from the criminals bank. I'm furious that BOA would allow an ACH transfer for that kind of money out of my account and into some random persons hands.

 

To get an ACH merchant account from BOA , I pretty much had to give a DNA sample and my 1st born. Once they find the merchant account they should be on those guys like stink on sh--.

[zow2]

**Update**- I had the bank fax me the affadavit....basically saying I did not authorize this debit transaction. I signed it and faxed it back first thing this morning. The bank says once they receive it, the issue will be "resolved" in 8 business days. Hopefully by "resolve", they mean the money will be put back into my account. They can't actually say that over the phone.

From what I was reading online, fraudulent ACH transactions can be resolved if the bank is notified within 60 days by a consumer....or 2 days by a business.

 

Also, I was told this crime probably had nothing to do with online banking, passwords, usernames, etc... ACH Fraud is a huge problem (never knew this till now) and has taken over from check fraud since so many use ACH for paying bills and electronic payroll. Basically, the criminal only needs three things...your bank acct number, routing number and social security #. Obviously they had mine.

 

I'll let you know when i get the money back...

[JoeFerguson]

Let me just clarify something, is the account that was stolen from the one you have directly linked to PayPal?

 

I have a shell checking account linked to my PayPal account and that bank account never has more than $100 in it. I don't know if that helps but it makes sense to me.

[bills_fan]

Let me just clarify something, is the account that was stolen from the one you have directly linked to PayPal?

 

I have a shell checking account linked to my PayPal account and that bank account never has more than $100 in it. I don't know if that helps but it makes sense to me.

 

 

The only thing I have linked to Paypal is my Amex card. I never linked a checking account. Of course, I rarely use Paypal.

 

Also, it is a good practice to separate your accounts...checking at one bank and savings at another. My saving is ING Direct and checking is still with M&T.

[apuszczalowski]

Thats why I never keep more then a couple of hundred dollars in my account (Well that and because I don't have any more money then that, lol)