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Thread: debiting from someone elses account?
PP-hater
New User

From: India
Messages: 3
 debiting from someone elses account?
Sent: 04-25-2006 16:45
  Reply



Guys but how is that possible?

To debit a certain amount from someone else's account you need the account no., routing no. and correct authorisation.
I don't think this is a glitch in the paypal system.

These can be some of the fraud employees of paypal, who have access to the mainframe system and from them they get information to everyon'e account. Then they use this information to their own benefit, withdraw funds and then let it on someone else's account, so that nowhere in the process paypal's name comes. If the bank a/c owner sues, he will have to sue the guy on the whose paypal account, paypal has burdened the blame of withdrawing funds from certain bank a/c.

And as I read in this forum that some people have experienced that funds were debited from certain bank account no.s which were not ven on file with paypal. This can only be possible when some of that paypal employees are hackers or are equally involved with hackers in stealing someone's personal a/c info. like the Social Security No. Which when entered on the federal govt.'s site's mainframe system can provide all kind of info. related to that SSN no.'s holder such as his name, D.O.B., Father's name, Bank A/c No.'s declared in tax assesements etc. and everything personal which ever a person has disclosed to his govt. is can be checked from the SSN no.
And then these frauds with the help of paypal or its employees or hackers who are paypal employees themselves, use paypal's system to hide their fraud by trying to blame the reason for debit of funds on original paypal a/c holders by their way old traditional method of saying 'Your a/s access is Limited'.

This way a big online fraud is building up within paypal which will now & then come to the authorities and media's centre of attraction.
paypal is increasingly become very dangerous to use, first through its wacky Terms & Policies, now through its dishonest employees or may be the management itself is involved equally in all this because no way these bank a/c faruds have been happening for so much time around and no one on the top line management didn't even took notice. this blind could only be turned when they are themselves the partners in the crime.

 




oldbat
New User

From: N/A
Messages: 1
 debiting from someone elses account?
Sent: 10-24-2005 09:49
  Reply



yes they can debit from any acct. all they need is the routing number and the acct number. that's how the nigerian scam works.

this is about check by phone, but it's also done with regular checks that you write. the check isn't returned to the bank and instead is converted to an electronic check.


Consumer Watch: New type of check fraud sweeping accounts away


This fraud involves the use of "demand drafts" or "remotely created checks," a type of check often used to allow purchases from telemarketers. It requires no handwritten signature endorsement to deposit. Instead, a statement on the check says that the customer authorized the check. Or, the check may have the customer's printed or typed name.

A crook easily can create these checks using your account number and information, typically printed on any check you write. Once someone deposits the demand draft, your account is debited. You might not notice it until you get your monthly statement. By that time, it could be too late. Your bank generally is required to return an unauthorized check by midnight of the banking day after the check is presented for payment.

Anyone can create a demand draft. "All it takes is a computer, printer and the right software," warns Elliot Burg, Vermont assistant attorney general.

With credit cards, you have the right to dispute a fraudulent charge and likely can get it credited. But "with a bank debit from your bank account, you don't have that right," Burg says.

Demand drafts are covered by the Uniform Commercial Code and a patchwork quilt of state regulations. You're not supposed to be liable for unauthorized checks against your account. The problem is proving fraud -- especially with no signature -- if your bank doesn't respond or if it doesn't believe you. FDIC insurance coverage is limited to bank failures.

The only thing you can do is tell your bank, "I didn't authorize it. It was forged. I never got a phone call. Or, I did get a call from a telemarketer, but I said no. I never gave my account information out," Burg says.

Fraudulent demand drafts often are issued in small enough increments to attract little attention, say $200 to $500. Take Burg's current case: There were 1,500 demand-draft debits made from various bank accounts nationwide. Total: $415,000. A Vermont check-processing company alerted authorities upon noticing half of the drafts printed for two Canadian telemarketers were returned due to insufficient funds or closed accounts. That, according to Burg, almost never happens.

Gary Fox, president of Bartow County Bank, Cartersville, Ga., says his bank charged off $18,000 due to fraudulent demand drafts. "Someone who had an account at another bank got the account information out of one of my customers."

It's unclear how widespread this type of fraud is. Reason: There's no single place to report it -- despite loads of federal and state bank regulators and law enforcement agencies. But it has attracted the attention of the Federal Reserve Board.

The Fed, which could act as early as this month, proposes to make the bank that accepts a fraudulent deposit draft for deposit liable for the loss.

Demand-draft fraud prompted the FDIC earlier this year to issue a special alert about the online service, "Qchex.com" Qchex, a subsidiary of Neovi Data Corp., San Diego, lets users anywhere print checks or send demand drafts by e-mail to recipients who print them. Victims included Internet merchants, who sometimes got an overpayment with a request to wire-transfer back excess money.

"Qchex's management team met with the FDIC, as well as representatives from financial-institution trade associations, to discuss concerns," says FDIC spokesman Frank Gresock. "At these meetings, Qchex management explained plans to improve their means of authenticating users. Qchex told us it has added a new validation system, similar to PayPal's.

Although there are other Internet companies, like Qchex, the FDIC says it has received no complaints about them. Some say it's a matter of time.

The National Association of Attorneys General wants the Fed to eliminate demand drafts.

"I feel (demand-draft fraud is) happening all the time," Burg says.

Demand drafts may be useful in some instances, such as avoiding a late mortgage or credit-card payment or sending money to a child at college. They are fast and can be cheaper than other types of transactions, including electronic checks, says Steve Powell, president of Checks Only, Yucaipa, Calif. His Web site, Checksonly.com, offers demand drafts.

Powell says he terminated some users' access to his service after a few fraud complaints, and has implemented stronger safety features. He checks account numbers and routing numbers against an updated database.

Can you arrange for your bank to prevent demand drafts from accessing your account? That's up to your bank. But a bank's automated system likely can't recognize demand drafts.

So about all you can do is:

a.. Hang up on telemarketers.
b.. Never reveal personal financial information.
c.. Frequently review your checking-account statements online.
d.. Only do business with banks that give good customer service. Check bank complaints at www.ripoffreport.com.
e.. Call your bank immediately and notify law enforcement if you have problems.

Gail Liberman and Alan Lavine's latest book is Rags to Retirement (Alpha). You can contact them at mwliblav@aol.com.

 




island
Big BOSS

From: Ireland
Messages: 1469
 debiting from someone elses account?
Sent: 09-29-2005 07:39
  Reply



<CaliCat>, unfortunately you walked into that last scam, NEVER EVER send items to anything other than the buyer's confirmed address.

 




<CaliCat>
Not Registered

From: N/A
Messages: N/A
 debiting from someone elses account?
Sent: 09-27-2005 22:19
  Reply



I was the original poster. I managed to get my account unlocked. But it\'s locked again. I sold a piece of jewelry for $880 and the lady wanted to use Paypal, had me send it to her work address instead of confirmed home address, and I did, insured and delovery confirmed. She got it, thanked me profusely via e-mail, then filed with Paypal saying she didn\'t get it. And her \"proof\" was in not sending it to a verified address. Despite her e-mails requesting me to send it to her office, and the header info tracing right to her, they stillf ound me at fault and attempted a refund. Since I always withdraw money IMMEDIATELY when it\'s deposited into my account, they gave her $175 (you know, the little $200 thing minus a $25 \"fee\"), and threw my account negative and asked me to deposit funds. I\'m ignoring it.

 




<PRINCE>
Not Registered

From: N/A
Messages: N/A
 debiting from someone elses account?
Sent: 06-03-2005 02:23
  Reply



PAYPAL WITH THE WEBSITE HTTP://WWW.PAYPAL.COM IS OPERATING WHAT IS KNOWN AS LEGAL FRAUD. AND THE FRAUD IS WITHIN THE PAYPAL TEAM.


Quote:
Typical of Paypal. For the third time this month they\'ve locked my account. For the third time I managed to get it unlocked by threatening suit and informing them of a multi TRILLION dollar class action I helped file (will make news in January). Today I found out my account is locked because they drafted money for one of my transactions from comeone else\'s bank account! They have access to the account number they charged. get this-that bank account they charged isn\'t even on ANY Paypal account.

 




CaliCat
Registered User

From: San Francisco
Messages: 43
 debiting from someone elses account?
Sent: 12-03-2004 11:08
  Reply



I spent a good hour on the phone with them trying to find out why my account was locked for the THIRD time (I got in unlocked, but foud it locked now for the fourth time this past mongth this morning, must call them yet again). The girl on the other end did what no person is ever supposed to do. Instead of asking me to verify my bank account number, she asked if my account was so-and-so, and rattled a number off to ME! I told her it wasn't my account and she got flustered. Then she looked at something or another and said the account wasn't ever actually put on my account. I told her, "I know, because I only ever put one bank account on my Paypal account." Then she said slowly, "It's not on any account." What she figured happened is some sort of strange internal error. So they're on the hook for it.

I spent a good deal of time arguing with her over what of the person who owns the bank account tried to sue ME for fraud, and she originally tried to say that I'd be suing myself until she looked and saw the account never on my account.

What tipped me off is that I got my bank statement and I always check it closely, and this one charge wasn't on it. I wanted to make sure everything was okay and e-mailed them. Then my account was locked. I seriously doubt the person to be suspiecious of is the one who's questioning why a charge is NOT on her statement.

 




RobertD
Big BOSS

From: Detroit, MI
Messages: 277
 debiting from someone elses account?
Sent: 12-03-2004 10:04
  Reply



Quote:
Not even mine. Between me and my boyfriend we have exactly one bank account, a savings account. No checking account. The money was debited from another bank account entirely.
How did you find out that it was withdrawn from an entirely different account, did PayPal disclose that to you, or do you know who owns the other account?

 




<Hmm>
Not Registered

From: N/A
Messages: N/A
 debiting from someone elses account?
Sent: 12-03-2004 06:38
  Reply



<CaliCat>,

Just how could they possibly withdraw funds from a bank account that isn\'t even on any Paypal account? You can\'t just withdraw from any account without permission.

 




RobertD
Big BOSS

From: Detroit, MI
Messages: 277
 debiting from someone elses account?
Sent: 12-02-2004 20:07
  Reply



Quote:
Not even mine. Between me and my boyfriend we have exactly one bank account, a savings account. No checking account. The money was debited from another bank account entirely.
Wow, that other person might have a pretty good case against PayPal...

 




CaliCat
Registered User

From: San Francisco
Messages: 43
 debiting from someone elses account?
Sent: 12-02-2004 18:55
  Reply



Not even mine. Between me and my boyfriend we have exactly one bank account, a savings account. No checking account. The money was debited from another bank account entirely.

 




PaypalSucks
Administrator

From: N/A
Messages: 2076
 debiting from someone elses account?
Sent: 12-02-2004 15:59
  Reply



Quote:
Typical of Paypal. For the third time this month they\'ve locked my account. For the third time I managed to get it unlocked by threatening suit and informing them of a multi TRILLION dollar class action I helped file (will make news in January). Today I found out my account is locked because they drafted money for one of my transactions from comeone else\'s bank account! They have access to the account number they charged. get this-that bank account they charged isn\'t even on ANY Paypal account.
Am I to understand they debited someone elses account, not yours? Or was it your account, just not one you gave to paypal?

 




<CaliCat>
Not Registered

From: N/A
Messages: N/A
 debiting from someone elses account?
Sent: 12-02-2004 15:56
  Reply



Typical of Paypal. For the third time this month they\'ve locked my account. For the third time I managed to get it unlocked by threatening suit and informing them of a multi TRILLION dollar class action I helped file (will make news in January). Today I found out my account is locked because they drafted money for one of my transactions from comeone else\'s bank account! They have access to the account number they charged. get this-that bank account they charged isn\'t even on ANY Paypal account.

 






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