Earl E Retyre
Full time employment: Posting here.
- Joined
- Jan 1, 2010
- Messages
- 541
Luckily, I looked at my Fidelity statement and noticed $225 was withdrawn on a cash account that I have not touched in years. A direct debit was made from my account to Ally bank auto finance which I assume was to pay for someone else’s auto loan.
I filled out a Direct Debit Dispute Form and faxed to Fidelity and they reimbursed my $225 but also asked that I notify Ally. Sparing you the details, I spent hours talking to several people at Ally and faxed lots of paperwork but never got an answer as to what happened. I do not even have an Ally Auto Finance account.
You would think that would be end of story, but then, on the same day of the month, the following month, lo and behold another $225 taken out. I filled out another Fidelity form and again they reimbursed my $225 and this time we just closed that account to stop the madness.
Fidelity told me the name of the person that was listed in the Debit Notes for whose auto loan it was paying and I obviously never heard of that person. What I do not know, and do not think I will ever know, is if this was Fraud – and someone purposely withdrew money from my account … or whether it was a simply clerical error on Ally’s part and someone accidentally typed in my account number and Fidelity routing number.
The scary thing is that seemingly anyone can get your routing/account number and make a withdrawal and your name or social are not checked for a match.
Coincidentally, on 7/5 Fidelity sent an email indicating they were implementing two-factor authentication for stronger account protection to allow its members to specify a phone number to receive a verification code by text. I believe Vanguard already has that implemented. Hopefully this would prevent something like this in the future but I am not sure if two factor authentication applies to direct debits.
Has anyone else had a similar situation?
I filled out a Direct Debit Dispute Form and faxed to Fidelity and they reimbursed my $225 but also asked that I notify Ally. Sparing you the details, I spent hours talking to several people at Ally and faxed lots of paperwork but never got an answer as to what happened. I do not even have an Ally Auto Finance account.
You would think that would be end of story, but then, on the same day of the month, the following month, lo and behold another $225 taken out. I filled out another Fidelity form and again they reimbursed my $225 and this time we just closed that account to stop the madness.
Fidelity told me the name of the person that was listed in the Debit Notes for whose auto loan it was paying and I obviously never heard of that person. What I do not know, and do not think I will ever know, is if this was Fraud – and someone purposely withdrew money from my account … or whether it was a simply clerical error on Ally’s part and someone accidentally typed in my account number and Fidelity routing number.
The scary thing is that seemingly anyone can get your routing/account number and make a withdrawal and your name or social are not checked for a match.
Coincidentally, on 7/5 Fidelity sent an email indicating they were implementing two-factor authentication for stronger account protection to allow its members to specify a phone number to receive a verification code by text. I believe Vanguard already has that implemented. Hopefully this would prevent something like this in the future but I am not sure if two factor authentication applies to direct debits.
Has anyone else had a similar situation?