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> The only things that are checked are the digits of the amount, and the account number. Well, the payee is also usually verified to match the destination acco

> The only things that are checked are the digits of the amount, and the account number. Well, the payee is also usually verified to match the destination account, and a few other elements are technically required for it to be a legal financial instrument (even if banks don't spend the time to check them every time). Legally, a check could be written on the back of a napkin and still be valid - as long as it has a few required details. The thing I've come to learn about checks is that their security features are not necessarily intended to prevent fraud, but rather to legally prove fraud after it has occurred. So no, banks often will not check those things, but anyone with access to the ACH network can reach into anyone's account and move funds around if fraud is suspected (it's basically a shared database with surprisingly little security). It inherently relies on the legal system to sort things out after the fact, which is a completely different approach from what we see in modern information security (where preventing unauthorized access/behavior upfront is the primary concern).

koolba 9y ago
> It inherently relies on the legal system to sort things out after the fact, ... This is why it’s critical to have transaction alerts for all activity for your financial accounts. Otherwise you could have an ACH slip through that drains your account. You wouldn’t notice till the next time you logged in or, more likely, when you try to use your debit card and realize it’s cleaned out.
- Someone1234 9y ago
  On that note, also consider your daily transfer limit. Often times banks will set these limits unnecessarily high ($10K is common). Alerts are a good way to spot the fraud, but limits cap how much they can take in the mean time. Even if you will ultimately get refunded, it could take months of a slow investigation before that occurs. I have mine set to double the most we've ever spent in a single month, and I've only had to increase it once (vehicle downpayment).
- rokhayakebe 9y ago
  that drains your account. This is barely dangerous imo. Inconvenient perhaps but not dangerous. The reason being your bank will refund the money. The dangerous ones are those that take tiny amounts monthly that you just won't notice.
  - ryandrake 9y ago
    > The dangerous ones are those that take tiny amounts monthly that you just won't notice. Wait, what? How are you not going to notice? Every transaction is a line on your statement which, I think, all banks issue monthly. Besides, if you have a computer, you can download all transactions (to Quicken or similar software) every day or two and verify all your new transactions. If you have a phone, Many banks and cards can even be set up to notify you on each transaction. If there was fraud on my account I’d know instantly, at worst within two days.
    - jhbadger 9y ago
      Most statements (at least in the US) have very cryptic descriptions though. For example there might be an entry for EPC #008 for $2.95, and by deduction I can figure out that is the identifier for the coffee kiosk in the lobby of my building, but there is no way I would be be able to identify all transactions. Normally it doesn't really matter except for large transactions which I would remember. I can see a small fraudulent charge going unnoticed.
      - wmertens 8y ago
        My bank's app sends a notification for every transaction. So normally, I pay, and seconds later my wrist buzzes and I can check the amount. Thanks to this I caught a fraudulent online transaction for 1.2 million columbian pesos(?) and was able to block my card immediately after.

koolba 9y ago

> It inherently relies on the legal system to sort things out after the fact, ... This is why it’s critical to have transaction alerts for all activity for your financial accounts. Otherwise you could have an ACH slip through that drains your account. You wouldn’t notice till the next time you logged in or, more likely, when you try to use your debit card and realize it’s cleaned out.

Someone1234 9y ago
On that note, also consider your daily transfer limit. Often times banks will set these limits unnecessarily high ($10K is common). Alerts are a good way to spot the fraud, but limits cap how much they can take in the mean time. Even if you will ultimately get refunded, it could take months of a slow investigation before that occurs. I have mine set to double the most we've ever spent in a single month, and I've only had to increase it once (vehicle downpayment).
rokhayakebe 9y ago
that drains your account. This is barely dangerous imo. Inconvenient perhaps but not dangerous. The reason being your bank will refund the money. The dangerous ones are those that take tiny amounts monthly that you just won't notice.
- ryandrake 9y ago
  > The dangerous ones are those that take tiny amounts monthly that you just won't notice. Wait, what? How are you not going to notice? Every transaction is a line on your statement which, I think, all banks issue monthly. Besides, if you have a computer, you can download all transactions (to Quicken or similar software) every day or two and verify all your new transactions. If you have a phone, Many banks and cards can even be set up to notify you on each transaction. If there was fraud on my account I’d know instantly, at worst within two days.
  - jhbadger 9y ago
    Most statements (at least in the US) have very cryptic descriptions though. For example there might be an entry for EPC #008 for $2.95, and by deduction I can figure out that is the identifier for the coffee kiosk in the lobby of my building, but there is no way I would be be able to identify all transactions. Normally it doesn't really matter except for large transactions which I would remember. I can see a small fraudulent charge going unnoticed.
    - wmertens 8y ago
      My bank's app sends a notification for every transaction. So normally, I pay, and seconds later my wrist buzzes and I can check the amount. Thanks to this I caught a fraudulent online transaction for 1.2 million columbian pesos(?) and was able to block my card immediately after.