"Preauthorized" Unauthorized Debit

[Livefree]

I logged into our bank account on Saturday and saw a Debit for $285 from our checking account, that wasn't authorized by us. It was listed as a preauthorized debit, similar to when a company debits your account automatically etc.



I called the bank, and they opened a claim. They said one of the ways it can happen, is if you write a check and someone can use the account number from the check to debit funds??



I've been writing checks since the 80's and never had this happen. They said we should get the funds back, and they blocked the bank from where it was cashed, from happening again...but the number could be used at another bank, so if it continues, we may have to close the account and get a new one.



This is just another reason not to write checks..I pay most everything online, but sometimes you need to.

 

[LateToFIRE]

The account number could have been acquired on the "dark web" not necessarily from your physical checks. We had a similar issue pop up a couple years ago and had to reassign account numbers all our bank accounts. The process wasn't as bad as you would think - all the legit automated bill pay transactions seemed to carry over seamlessly.

Edited: You have to catch stuff quickly otherwise the institution not responsible for reimbursing you. I tried looking up the statute of limitations for this sort of thing - I can't figure it out and seems to depend on the state. I know for credit card transactions you only have a few months to catch fraud before the credit card company is off the hook.

 

[MichaelB]

The Electronic Funds Transfer Act is the regulation that governs fraudulent electronic transactions. They stipulate that if you report the fraud within 2 days of becoming aware, the liability is $50. Otherwise the account holder has 59 days from the date of the bank statement mailing to report the fraud, and the liability is $500.

Most banks fully refund if notice is given within 60 days.

 

[Livefree]

The account number could have been acquired on the "dark web" not necessarily from your physical checks. We had a similar issue pop up a couple years ago and had to reassign account numbers all our bank accounts. The process wasn't as bad as you would think - all the legit automated bill pay transactions seemed to carry over seamlessly.

Edited: You have to catch stuff quickly otherwise the institution not responsible for reimbursing you. I tried looking up the statute of limitations for this sort of thing - I can't figure it out and seems to depend on the state. I know for credit card transactions you only have a few months to catch fraud before the credit card company is off the hook.

That might be what happened...we'll probably get a new account.