Also in this playlist...
This transcript is automatically generated
Right onto a very troubling trend going on -- banks across the country that's essential it essentially lets your checking account.
Be accessed by someone else major banks like Bank of America for example.
Are reusing checking account numbers think about that do you have any old checks in your -- home we all do.
Well if someone else used to have your account number and they still have those checks they could be writing checks from your account -- C number running.
Here explain why bags are allowing this to happen how to protect yourself is John Alzheimer.
Great to have you back from the show so this breaks down to banks basically.
Riis cycling account numbers why -- they doing that.
It does break down to recycling and this sounds suspiciously similar to Y two K.
For someone didn't think ahead understated -- -- you're gonna have too many checking account customers and run out of permutations.
Five and six digit account if you take -- -- a map if you take a five day account number they're only 59000.
Of that number if you have more than 59000 checking account customers like most big banks.
Then you're gonna have to -- recycle a number that is no longer in use -- have to increase the number of digits which is incredibly -- you have to reprogram systems someone did not think.
I had no I mean even if you add another digit that still only gives you 900000.
It right I mean it's it's -- it's not.
It is kind of their -- but it's not kind of their fault because you only have so many numbers so inevitably.
You have to recycle about what else can -- -- there's a lot that you have to wait three years to recycle them is that doing the trek.
It's not Dana track because as you know if you find a Balkan style not of checks.
As you're moving -- can be five -- -- six years old and are outside the three year period and still if it's been attacked.
It's -- routing numbers the same right the routing numbers the same and it added if the account numbers assignment didn't theoretically summit this is check fraud this is nothing more than check fraud.
And someone can perpetrate it and knowing accidentally rights and -- -- against an account that they know has been closed for six years.
-- -- but let me get this taken out once a further if you take -- digits to eight.
That's in 1980 million permutations that really solves -- probably because no one has ninety million checking account customer.
No that's true but then adds you -- -- -- have to redo all of their software and everything I how.
I guess that's what has to happen over time -- -- there was a story about an older couple and this was happening to them again and again and it was small amounts that somebody was writing out of -- checking account.
-- -- -- didn't really notice that entail.
There -- -- I think it was got involved and realize that there were checks being written but they -- a significant amount of money over time.
What's individuals do to protect themselves which our viewers -- So there's a few things you can -- first off unfortunately you're gonna have to become more engaged with your checking account which means you're gonna have to law again maybe every couple of days just to make sure that the transactions are familiar to you.
Number two it is you know maybe it's time said not do business with the mega bank can do business with a smaller bank.
-- where they're not gonna have fifteen or 29 and checking account customers and there is no issue of recycling numbers and third keep a really low balance in your checking account because then your risk exposure has been limited.
Interesting our -- is so much for coming on the show we appreciate the tips.
Filter by section