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If someone shows up with your debit card and pin, which is similar to knowing someone's account credentials, wouldn't the bank give you that cash up to some amo

If someone shows up with your debit card and pin, which is similar to knowing someone's account credentials, wouldn't the bank give you that cash up to some amount (without further verification) because it's insured anyway?

nkrisc 6y ago
> If a bank gave all my money A bank would not let you empty an account with just a debit card and PIN, assuming there was some non-trivial amount of money in there.
greenshackle2 6y ago
> up to some amount I think that's a pretty important detail. With my bank they could only get up to $1000 without further verification.
vkou 6y ago
1. It will give that cash up to some amount. It won't let the chap drain my entire account. 2. They will return my money if I reported the theft in a timely fashion. Robin hood seems to be doing neither.
- threatofrain 6y ago
  For a singular transaction, a thief might limit themselves to something well under $10k. If a thief makes multiple withdrawals totaling $16k, which is over the FDIC insured amount, would a bank really just compensate you for that? Wouldn't that be out of the graciousness of the bank (or PR)?
  - nimih 6y ago
    In the US, as long as you notify the bank within 60 days of receiving a statement that has fraudulent transactions, your maximum liability is $500, and that goes down substantially if you notify the bank promptly of a lost/stolen card, or if the card was not lost in the first place[0]. So yes, the bank really would[1] just compensate you for that, provided you notice the fraud within 2-3 months of it occurring (depending on how quickly you get a bank statement). Edit: You may still be on the hook for overdraft fees from e.g. authorized payments, and it may take some time for the bank to indemnify you, which is why the conventional wisdom is that CCs are safer than debit cards from a fraud perspective. [0] https://www.consumer.ftc.gov/articles/0213-lost-or-stolen-credit-atm-and-debit-cards https://www.consumer.ftc.gov/articles/0213-lost-or-stolen-cr... [1] and is in fact legally required to: https://www.federalreserve.gov/boarddocs/caletters/2008/0807/08-07_attachment.pdf https://www.federalreserve.gov/boarddocs/caletters/2008/0807...
  - PeterisP 6y ago
    At least in EU that would be a legal requirement (Payment Services Directive rules that limit liability for unauthorised transactions), not graciousness/PR of the bank. FDIC insurance (and its equivalent in other countries) is something completely unrelated - it's for cases when the bank is unable to pay you because it goes bankrupt for some reason (which may include massive fraud done to the bank or by the bank), it's not for cases when your money gets lost in some other way.
  - vkou 6y ago
    The $10k thing is only necessary for AML compliance. Since the bank is on the hook for giving out customer money to random con artists, their threshold for investigating suspicious account activity is much lower.

nkrisc 6y ago

> If a bank gave all my money A bank would not let you empty an account with just a debit card and PIN, assuming there was some non-trivial amount of money in there.

greenshackle2 6y ago

> up to some amount I think that's a pretty important detail. With my bank they could only get up to $1000 without further verification.

vkou 6y ago

1. It will give that cash up to some amount. It won't let the chap drain my entire account. 2. They will return my money if I reported the theft in a timely fashion. Robin hood seems to be doing neither.

threatofrain 6y ago
For a singular transaction, a thief might limit themselves to something well under $10k. If a thief makes multiple withdrawals totaling $16k, which is over the FDIC insured amount, would a bank really just compensate you for that? Wouldn't that be out of the graciousness of the bank (or PR)?
- nimih 6y ago
  In the US, as long as you notify the bank within 60 days of receiving a statement that has fraudulent transactions, your maximum liability is $500, and that goes down substantially if you notify the bank promptly of a lost/stolen card, or if the card was not lost in the first place[0]. So yes, the bank really would[1] just compensate you for that, provided you notice the fraud within 2-3 months of it occurring (depending on how quickly you get a bank statement). Edit: You may still be on the hook for overdraft fees from e.g. authorized payments, and it may take some time for the bank to indemnify you, which is why the conventional wisdom is that CCs are safer than debit cards from a fraud perspective. [0] https://www.consumer.ftc.gov/articles/0213-lost-or-stolen-credit-atm-and-debit-cards https://www.consumer.ftc.gov/articles/0213-lost-or-stolen-cr... [1] and is in fact legally required to: https://www.federalreserve.gov/boarddocs/caletters/2008/0807/08-07_attachment.pdf https://www.federalreserve.gov/boarddocs/caletters/2008/0807...
- PeterisP 6y ago
  At least in EU that would be a legal requirement (Payment Services Directive rules that limit liability for unauthorised transactions), not graciousness/PR of the bank. FDIC insurance (and its equivalent in other countries) is something completely unrelated - it's for cases when the bank is unable to pay you because it goes bankrupt for some reason (which may include massive fraud done to the bank or by the bank), it's not for cases when your money gets lost in some other way.
- vkou 6y ago
  The $10k thing is only necessary for AML compliance. Since the bank is on the hook for giving out customer money to random con artists, their threshold for investigating suspicious account activity is much lower.