Internet theft: Will banks cover it?
- Thread starter MarNav1
- Start date
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Usually yes, I've been hit twice. However some companies have learned how to fight it, there is one for example that sells those overprices nike shoes and such and they will send a ceritfied letter to your back claiming they refunded your $ separtly so the bank will close the case then and it takes forever to fight it.
js
Flashlight Enthusiast
I asked this question of my bank, and they said "yes", that they would. You just notify them of the deduction you think is fraudulent and they will deal with it one way or another. Of course, it may be that the money is gone from your account until such time as they ascertain that, yes, indeed it was theft or fraud, which sort of sucks.
If and when this is confirmed as a PayPal problem, please post as much of the explanation as you can.
If it wasn't a PP problem, let us know that too.
I have never been totally at ease with PP.
Thanks,
Mike
Black Rose
Flashlight Enthusiast
They should cover it.
I had my debit card skimmed and duplicated last year. The banks fraud department detected it right away and contacted me.
The bank reimbursed me for the stolen funds.
If it was done through PayPal, wouldn't there be a PayPal entry in your account? I'm assuming that PayPal withdrawals from bank accounts shows similarly to the way it does for credit cards.
I had my debit card skimmed and duplicated last year. The banks fraud department detected it right away and contacted me.
The bank reimbursed me for the stolen funds.
If it was done through PayPal, wouldn't there be a PayPal entry in your account? I'm assuming that PayPal withdrawals from bank accounts shows similarly to the way it does for credit cards.
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Direct personal correspondence from someone shouldn't be reproduced but can be paraphrased if necessary, nor should very personal identifying data be posted. Beyond that, you'd probably want to protect yourself from reasonable charges of libel.
I don't think we can anticipate everything you could possibly do that might be raise our eyebrow. Fortunately, we're easy to get along with and fair.
I don't think we can anticipate everything you could possibly do that might be raise our eyebrow. Fortunately, we're easy to get along with and fair.
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Well I discovered thursday 9/18 that my balance was way off when I went to the ATM for lunch money. Since it was an ATM for a different bank I thought i'll call my bank to verify. Same answer. So after work I came home and got on the computer to check my account and three withdrawls were made on 9/16. All said PayPal transfer, then a series of numbers, then a person's name. Same name, and the numbers were all the same except the last 4 digits. When I checked my PayPal account, no such transactions are listed. I do not recognize the person's name either. I notified the bank (Wells Fargo) and PayPal. They are both investigating what happened. I'm careful with my card and I haven't given my PIN to anyone. I'm the sole accountholder too. Another thing I didn't think of or know about was to have a daily withdrawl limit placed on my account. I hope the funds can be replaced since they took almost $5000 dollars. I feel vulnerable now since I don't know how it was done. I think it will be covered but I'm not positive. One of the reasons I posted this was to warn everybody here to safeguard your stuff and become educated as much as you can so you don't get ripped off like I did. If anyone can tell me some more steps to take to safeguard things it would be helpful.
gadget_lover
Flashaholic
If you have give anyone a check at any time, then they have the information needed to set up a bogus Paypal account using your checking account. For that matter, since last year any business that you give a check to can copy the information from your check and make an instant electronic deduction from your account. They are no longer required to even prove that they have that check.
Then the banks make it even easier by giving people ATM cards that are also debit cards. The debit card can be used without a pin and with no name or signature.
So enter the unscrupulous. They use whatever method that is available to transfer the funds. Paypal, purchases and returns, or even just buying things.
They may have guessed your debit card number. That is easy, and visa makes it easy to use online.
They may have bought your information from a bank employee or from a hacker who got it from someone you did business with. You may have thrown away your old checks, and someone at the dump / landfill latched onto them.
They did not necessarily do anything to or with your Paypal account... They most likely used Paypal as a clearing house for their thievery. Other likely techniques use "cash advances" and wire transfers.
There are too many thieves, and the penalties are much too lenient.
Daniel
Then the banks make it even easier by giving people ATM cards that are also debit cards. The debit card can be used without a pin and with no name or signature.
So enter the unscrupulous. They use whatever method that is available to transfer the funds. Paypal, purchases and returns, or even just buying things.
They may have guessed your debit card number. That is easy, and visa makes it easy to use online.
They may have bought your information from a bank employee or from a hacker who got it from someone you did business with. You may have thrown away your old checks, and someone at the dump / landfill latched onto them.
They did not necessarily do anything to or with your Paypal account... They most likely used Paypal as a clearing house for their thievery. Other likely techniques use "cash advances" and wire transfers.
There are too many thieves, and the penalties are much too lenient.
Daniel
jzmtl
Flashlight Enthusiast
I thought they would have to enter the exact amount that paypal deposit into your bank to completel the setup, so they'd have to have access to your bank account details?
gadget_lover
Flashaholic
LOL Well, color me embarrassed. I have not set up a paypal -> bank account link, so I was not aware that they were using that step. Of course, even if they do that, based on my experience with other, similar processes, it's generally a few cents. It's not hard to guess a number from .01 to 2.00.
Instead of tying our paypal account to a bank account, we use a credit card issued by Paypal that is only used for sending and getting paypal payments. That card number was guessed last year and someone tried to charge some big ticket item in the far east. It was detected and refused, and the credit card was immediately put on hold and the card number was changed.
Daniel
BTW, I'm supposed to mention that I work for the company that owns Paypal, and that I am not speaking for them in any way. I don't have any special insights.... I'm just a peon.
jzmtl
Flashlight Enthusiast
Does that card work for sending cash payment? Sometime it's necessary for buying stuff.
Diesel_Bomber
Flashlight Enthusiast
- Joined
- Feb 19, 2006
- Messages
- 1,772
I have no experience with Paypal, but.......
My walking-around general-use debit card has been tampered with a couple times. After the first time I switched things around with my bank. I created a new checking account that I never put more than ~$500 in, so that even if every penny gets lost/stolen it's still not going to bother me any. That account also has no overdraft protection whatsoever; if someone tries to withdraw an amount greater than what is in the account, then the transaction is simply declined. It won't automatically draw from a savings account or credit card and there's no overdraft fee.
If I had a Paypal account I would attach it to this checking account for exactly the same reasons - even if totally drained, it won't hurt me any.
:buddies:
My walking-around general-use debit card has been tampered with a couple times. After the first time I switched things around with my bank. I created a new checking account that I never put more than ~$500 in, so that even if every penny gets lost/stolen it's still not going to bother me any. That account also has no overdraft protection whatsoever; if someone tries to withdraw an amount greater than what is in the account, then the transaction is simply declined. It won't automatically draw from a savings account or credit card and there's no overdraft fee.
If I had a Paypal account I would attach it to this checking account for exactly the same reasons - even if totally drained, it won't hurt me any.
:buddies:
NA8
Flashlight Enthusiast
- Joined
- Jun 4, 2007
- Messages
- 1,565
Found this the other day and liked the idea:
http://www.schwab.com/public/schwab...l_compliance&refid=P-2245736&refpid=P-2244233
http://www.schwab.com/public/schwab...l_compliance&refid=P-2245736&refpid=P-2244233
who's going to cover the banks?
gadget_lover
Flashaholic
They don't need to be covered. They just pull the money back from the company who withdrew it (in most cases).
Daniel
Daniel
NeonLights
Flashlight Enthusiast
I keep my primary Paypal account linked to a seconday bank account that usually has a fairly low balance, so no major damage can be done. I seldom use Paypal for much anymore though, if I start using it a lot again, I'll open a new account at one of the banks we use and only use it for Paypal. I can transfer funds in and out electronically if I want, but Paypal can only access the one account.
In the past when I've done this, I only kept enough money in that bank account to fufill the Paypal payment I needed to make, and as soon as money hit my Paypal account, I'd transfer it to my bank, and then out of that bank account. Call me paranoid, but I've never had any of my bank accounts, credit cards, debit cards, or paypal accounts hit in the 10+ years I've been buying and selling stuff on the internet.
In the past when I've done this, I only kept enough money in that bank account to fufill the Paypal payment I needed to make, and as soon as money hit my Paypal account, I'd transfer it to my bank, and then out of that bank account. Call me paranoid, but I've never had any of my bank accounts, credit cards, debit cards, or paypal accounts hit in the 10+ years I've been buying and selling stuff on the internet.
