A New Way for Thieves to Target Your Money

Thieves have found yet another way to swindle money from bank accounts that are being accessed with “e-checks.” American are already familiar with the credit cards and debit cards that can be used in the place of cash transactions, and now many banks and merchants offer the use of “electronic checks (e-checks)” that are convenient for consumers, but unfortunately vulnerable to theft.

Electronic Checks / Electronic Fund Transfers
E-checks work like this: A consumer wants to purchase something from a merchant (often a brick-and-mortar store, but this can also be done by phone). The consumer gives his or her bank checking account information verbally to the merchant. This information is the bank name, routing number, his or her personal checking account number, and the agreed-upon price of the item, to be debited from the account.

Consumers can also have their accounts automatically debited this way for recurring payments such as utility bills and mortgage payments. These are called ‘electronic fund transfers.’

The Information Is Transferred
The merchant may convert this information to a paper check at the point of purchase, or the merchant may submit the information immediately to a clearinghouse system that presents the electronic payment request to the consumer’s bank. When there’s no theft involved, the checking account is simply debited for the correct amount.

It’s a paperless, card-less transaction that is just made of numbers - numbers that can be stolen at different points in the system and even sold on the Internet. Like a counterfeit signature, the bank information is not questioned.

What You Can Do to Prevent Theft of Your Information?
You could decline to make any purchases or payments this way. Barring that, you should monitor your checking account statements very carefully. As soon as you receive a statement, review it and check whether there are any payments or purchases on it that you did not make. If there are any electronic fund transfers that you did not authorize, report it to your bank immediately.

A federal law, the Electronic Fund Transfer Act, protects consumers from incorrect e-fund transfers, but you must act within the 60-day limit from the date you received the account statement. The bank (or other financial institution where your account is kept) will investigate the matter, and you may be able to get the money returned to you.

Information Given Over the Phone
In addition, you should never give your checking account information (or credit card info) to someone who calls you. People who call you with offers or to “confirm your information” may be scam artists who are very good at posing as bank or merchant staff.

If you have further questions, or feel that you’ve been the victim of an e-check fraud and want legal help, you can contact the Law Office of Matthew L. Sharp for advice and representation. 

419 Flint Street
Reno, NV 89501
Matt@MattSharpLaw.com

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Tel: (775) 324-1500
Fax: (775) 323-6249