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66

There is no banking process in the world which requires you to share your "security info" (passwords, PINs, TANs, mother's maiden name or other authentication factors) with a third party. No bank anywhere in the world will tell you that there is any situation whatsoever where you are supposed to give those secrets to anyone but them. No bank anywhere in ...


25

From the link in Vicky's answer, the fraudsters needed access to the victim's computer (or for the victims to transfer the money, or general access to the victim's account) and for the victim to read off the one-time passwords they were asking for. This was a social scam, not a technical scam. On the other hand, it seems like they were targeting the ...


22

There is a delay between the billing cycle and when the payment is due, it can vary, but it means you don't pay for any purchases for at least the length of the delay. In cases where you purchase at the beginning of the billing cycle, that's at least a month before you pay, but even in cases where you make purchases at the very last day of your billing cycle ...


13

Yes, this is always a scam. Anyone you meet online who wants passwords to access your finances is trying to scam you. There are a lot of different ways this can play out, but the most common is that the scammer is going to transfer tainted funds into and then out of your account. When the transfer into your account is reversed, you will be left with a ...


13

I noticed that the interest rates on savings accounts are significantly higher than those of checking accounts. Why is this the case? Balances in savings accounts tend to be maintained for much longer periods of time (both by choice, and by restrictions on transactions), so the bank doesn't need to keep as large a reserve and can loan out more of the money, ...


11

the receiver says the fund is put on hold. What does that means? It means you shouldn't trust people who have scammed you. What now? Stop communicating with the scammer. Work with your bank and your local police


11

Because rates might be lower before the 9-month period is over. If you don't think that's likely, that's fine.


11

There is only one answer to this. Wire the money. International transfer of money from Norway works very well and has decently low costs. Any other transfer method will either make you lose money or get a visit from anti-money-laundering law enforcers.


9

You're missing something very important. Banks do not have a 1 to 1 accounting of deposits with cash. Hence why bank runs are a problem, in a panic situation where everyone wants to withdraw their money, they literally do not have it. So physical cash you deposit just sits around until someone else wants to make a withdrawal. As long as your accounts are up ...


7

There's absolutely no reason for your employer to sue. You didn't intend to defraud your company or the bank and you're perfectly willing to return the extra money that isn't yours. You shouldn't be arrested - crimes generally require some sort of intent to commit a crime, and you had good reason to believe that you were honestly getting the money you ...


7

Do I need an online savings account and a physical checking account? You don't need one, but you might find it convenient to have one. Cash deposits are still an issue with online banking, some allow ATM deposits but otherwise you'll typically be looking to turn the cash into a check to deposit online. I have a couple local credit union accounts that were ...


7

Well, they (presumably deliberately) haven't published the details of the methods the scammers used, so none of us can say. The BBC story is very light on details but it does say that she was the victim of a "sophisticated con" and that she was "tricked into handing over sensitive security details". All that really matters is that the Financial Ombudsman, ...


6

There are three types of risk being avoided here. The first is the most obvious and blatant check fraud. Because the law requires policies to be applied uniformly, then exceptions have to have policies as well. In other words, if Policy A does not work for customer X, then customer X has to qualify under a broad exceptions rule to make Policy B available ...


6

As far as I know, this is primarily a legacy of the distinction between banks and building societies, which is now mostly invisible (and most former building societies including Halifax are now banks, with Nationwide being the biggest exception). Typically the building society would have have transactions routed to it via an account it held itself at a bank,...


5

I think it's appropriate to have an account at a local brick and mortar bank. It could be a savings or a checking account. I have a free checking account (and online bill pay) as well as my safe deposit box at Wells Fargo. I don't keep much in the account. A monthly direct deposit check goes in and it almost covers my periodic cash withdrawals for ...


5

You should be receiving monthly statements for your credit card, either in paper form or electronically via your online banking system. Each statement will have a list of transaction processed in the billing cycle it covers, the total amount you owe, and the payment due date. You can use this information to determine how much you must pay and by when. Note ...


5

I want to start of my credit on a good note. Then don't play the "wait as long as possible" game. Keep it simple and pay it off at the end of the calendar month, no matter when you purchased things. Regularly log into the card's website to monitor your spending, and keep track of it in a spreadsheet. (I say this as someone who was deep in credit card ...


4

Just an online account is usually just fine I have had accounts only at online banks for several years (Schwab Bank if interested). Before that I had an account at Wells Fargo myself but that is now closed due to poor service and high fees I ended up paying. (This answer is based on my own experiences but should apply equally to anyone in a similar ...


4

I have been moving money around online for 20 years. It's not often but sometimes a bank offers a good MM rate and then ceases to keep up with rate hikes at other banks. If I can get 40-50 basis points more elsewhere, I'll transfer/close. On $100k, that's $400-$500 more per year for ~15 minutes of effort. See if you can set up a bank to bank transfer ...


4

In a comment, you clarified your question as, What is the set of information that must be secured to prevent scammers clearing your bank account? The good news is, banks have evolved security and fraud protection as they've added services. Since the focus of your question seems to be around scams that rely on access via online banking, the typical ...


4

What you are asking here could also be put on Stack Overflow because it is as much a computer science question as a finance one. Banks have many ways to protect from checks being used twice including machine learning programs to hopefully identify if the same check is being used twice; however, it does happen that they can be used more than once. One: The ...


4

This answer isn't going to tell you how to determine if this is a scam, and is assuming that your bank and the other bank can do this across borders and with different currencies. In general one bank will need the routing number of the bank and the account number that is being linked. They then send one or more micro transactions to verify that the numbers ...


3

First and foremost, I think it's important to remember that things are illegal and there are courts and jails to ultimately handle people that contravene laws. If you have the ability to deposit a check in to an account, then "know your customer" vetting applies; so the bank has seen and recorded two forms of identification and verified your address. This ...


3

You can get the file format specifications and most of the documentation related to ACH by googling, if you're actually interested in the fine details. The standards are probably a little looser than most people would assume, in order to allow flexibility. This basically forces financial institutions to make decisions based on their own risk tolerance or ...


3

Adding to the other answers, this is also depending on the bank. I have accounts with several banks, and for example BoA and Chase have increased those limits after some time of proper usage (=no fraud) to 50000$ - far more than I'd ever need (the account balance is typically only three or four digits). So, as much as you won't like it, changing bank might ...


3

"I want to understand at what point does a bank issue the physical currency from a cardholders digital payment to a merchant." Almost certainly never :-) If you deposit $25 in bills at your Chase branch, those bills are probably paid out to the next person who asks for cash. Meanwhile, the now-electronic $25 in your account gets transferred to the ...


3

They are doing that because they have been told to under new EU rules - Payment Services Directive PSD2. See BBC or CNBC. This requires banks to make APIs available so that other financial companies can pull together data from multiple banks, for instance in mobile apps.


3

The spaces are not part of the number and are just used to group digits. Some websites allow you to type the spaces and will remove them automatically, other sites consider spaces invalid. Don't worry, if the number is mistyped the website will show an error. IBANs also include an error detection code that ensures that you didn't mistype the number.


3

Why do online banks have this permanent residency requirement in place? First, not all banks have this requirement, but a great many do. When I was a non-permanent-resident worker I got an account at a local credit union specializing in people in my industry. But your question is why banks have a residency requirement. Let's follow the chain of logic: ...


2

They don't make money off of you connecting to their website, they make money off of you keeping your loans with them (or your deposits, such that they can fund other loans). If they don't provide an ability for you to view your balances through a (secure) consolidated third-party interface, and another bank does, some customers may be incentivized to use ...


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