3 very odd direct debits

chriswa1

Hi
I noticed 3 direct debits set up against my bank account with Halifax that I hadn't created. Fortunately I cancelled these and also have changed my actual bank account, so that should be the end of the matter.

I've two issues though. Firstly, all three direct debits were for products associated with 3 houses in the street that I moved from last year. All were of little value. Having spoken with my bank they have no idea as to what potential fraud there could have been. Despite asking them to investigate, they refuse as there's no loss. I'm suspicious that the bank has mixed up my details, especially given at least one of the other street residents bank with the same bank as me. The matter has been reported to Actionfraud, but since I have suffered no loss, I doubt there is much else I can do - unless anyone on here has any further thoughts.

Secondly, I was amazed to discover that there are two ways direct debits maybe set up. The first one fairly securely. The second one just requires someone to know your name, sort code and account number. Then they could set up these direct debits and have products delivered to them. There is no requirement for the company processing the direct debit, or the bank, to even check the address of the payee. Given we have so many sophisticated security processes, surely retailers and banks can't take so few security checks and allow money to be taken from your account. Whilst the direct debit guarantee prevents loss, it hasn't stopped me from having to spend almost 5 hours dealing with this matter. Any views on this lack of security?

Just in case anyone questions my security - I receive no correspondence other than online in association with my bank. Shred everything of a confidential nature. Have up-to-date security programs in place on my pc and do not use unsecure networks.

Thanks for any comments you make in advance.

matttye

chriswa1 wrote: »

Any views on this lack of security?

Banks have to refund unauthorised transactions IMMEDIATELY (the law says so) so they are the real losers.

innovate

matttye wrote: »

Banks ...are the real losers.

Actually, they are not. Because they will come with a vengeance after the real culprit, and they will have the last laugh.

dalesrider

chriswa1 wrote: »

Hi
I noticed 3 direct debits set up against my bank account with Halifax that I hadn't created. Fortunately I cancelled these and also have changed my actual bank account, so that should be the end of the matter.

Who?

chriswa1 wrote: »

I've two issues though. Firstly, all three direct debits were for products associated with 3 houses in the street that I moved from last year. All were of little value.

Have you ever used these companies, while living in that street?

chriswa1 wrote: »

Having spoken with my bank they have no idea as to what potential fraud there could have been.

Well without knowing who the co's are can't commet.

chriswa1 wrote: »

Despite asking them to investigate, they refuse as there's no loss. I'm suspicious that the bank has mixed up my details, especially given at least one of the other street residents bank with the same bank as me.

Any invistagion will have to be by the party suffering the loss... That will be the 3 co's

chriswa1 wrote: »

it hasn't stopped me from having to spend almost 5 hours dealing with this matter. Any views on this lack of security?

How did it take 5 hours to stop 3 DD's not set up by yourself???

I have a idea of what may have happened, but will await some replies before. I answer....

innovate

chriswa1 wrote: »

.....The second one just requires someone to know your name, sort code and account number. Then they could set up these direct debits and have products delivered to them........

Only if they have a Direct Debit authority, which isn't terribly easy to get. And once in place, payments to the person/outfit the payments went to, can be traced with 100% certainty. Perhaps read up how to set yourself up so you can take DDs?

chriswa1 wrote: »

There is no requirement for the company processing the direct debit, or the bank, to even check the address of the payee.

Do you understand what's involved in checking someone's address? You should be delighted that there is no requirement for address (or name) check when processing a direct debit, or other payment. If there were one, we would have babylonic confusion over why millions of payments aren't executed.

The Direct Debit Guarantee is there to protect you when something goes wrong. It worked as designed in your case, like it should. So what's the issue?

matttye

innovate wrote: »

Actually, they are not. Because they will come with a vengeance after the real culprit, and they will have the last laugh.

IF they're able to recover the money, they will have the last laugh.

dalesrider

matttye wrote: »

IF they're able to recover the money, they will have the last laugh.

Halifax claim it back from the other bank.... Who them claim it back from the company.....
Who them chase the person who set it up.


Some people are just plain stupid if they think a bank will lose money :rotfl:

innovate

matttye wrote: »

IF they're able to recover the money, they will have the last laugh.

The banks might not get their money back, but they will try their damndest, and I would suggest they have excellent changes to wipe the fraudster's business off the face of the earth.

If someone with a Direct Debit licence is acting fraudulently, they will get their DD licence revoked for good and are not likely to have a lot of success with any future dealings with any banks.

That's one form of having the last laugh.

matttye

dalesrider wrote: »

Halifax claim it back from the other bank.... Who them claim it back from the company.....
Who them chase the person who set it up.


Some people are just plain stupid if they think a bank will lose money :rotfl:

Scenario:

Mr fakeperson sets up an account.
Mr fakeperson then defrauds the OP and withdraws money as soon as it enters his account.

How does mr fakeperson's bank get their money back clever cloggs?

dalesrider

matttye wrote: »

Scenario:

Mr fakeperson sets up an account.
Mr fakeperson then defrauds the OP and withdraws money as soon as it enters his account.

How does mr fakeperson's bank get their money back clever cloggs?

Simple. I'll let you think of the answer

matttye

innovate wrote: »

The banks might not get their money back, but they will try their damndest, and I would suggest they have excellent changes to wipe the fraudster's business off the face of the earth.

If someone with a Direct Debit licence is acting fraudulently, they will get their DD licence revoked for good and are not likely to have a lot of success with any future dealings with any banks.

That's one form of having the last laugh.

That's if it is the company with the licence acting fraudulently. Anyone who has access to your card and knows enough about you can set up a direct debit.

Whilst this wasn't a direct debit, let me give you a personal example... Three £10 debits were taken from my account by O2 to top up three different phone numbers. Clearly it wasn't O2 that defrauded me but someone who instructed them to carry out those transactions. I was never invited to prosecute the fraudsters so can only assume they were never caught.