Is it risky to share my account and routing numbers with an employer?
Payments
Asked by Question Bot01/Jan/20151 answer
1 Answer
F
Faisal Khan
Answered 01/Jan/2015
The ACH system in the US is pretty weak on security, so it can be abused on that front. If your employer is asking this for direct credit of funds to your account, then you can ask them if there is another option as you don't feel comfortable in giving such information out.
Most of my friends in the US, actually have separate bank accounts. For example, one friend has a bank account in small community bank that she uses for such purposes. The name/number of this account is shared at a lot of places for direct deposits. She then moves the money into her Wells Fargo account, and this information she does not give out to anyone.
Granted there are fees for moving money back and forth, but she cites, until there is more security, she's not risking it.
Some employers may not be able to process your payments other than a direct debit, so you may not have much choice.
A good safety is to subscribe to some form of email or text alerts on each and every transactions done on your bank account. Under the US system you have 90 days to ask for a reversal, but sometimes that can be challenged and go to the courts too - but which time it is too late.
In the UK, the security is a little better, believe it or not, you have up 5 years to cancel / challenge the direct debit transaction.
Most of my friends in the US, actually have separate bank accounts. For example, one friend has a bank account in small community bank that she uses for such purposes. The name/number of this account is shared at a lot of places for direct deposits. She then moves the money into her Wells Fargo account, and this information she does not give out to anyone.
Granted there are fees for moving money back and forth, but she cites, until there is more security, she's not risking it.
Some employers may not be able to process your payments other than a direct debit, so you may not have much choice.
A good safety is to subscribe to some form of email or text alerts on each and every transactions done on your bank account. Under the US system you have 90 days to ask for a reversal, but sometimes that can be challenged and go to the courts too - but which time it is too late.
In the UK, the security is a little better, believe it or not, you have up 5 years to cancel / challenge the direct debit transaction.