A lot of banks have tightened up their policies over the years to prevent new account fraud. This is where a new account is opened (either credit, or checking)and the balance is built up with bogus deposits. This enables the crook to run around spending the money until the bank realizes the deposits are fraudulent.

From what I've seen, most banks now set the parameters on how long the account has been established etc.

In the Internet age, there are new possibilities. Account takeovers are becoming rampant, probably with the help of phishing activity. If the crooks can get into an established account that the bank trusts, they can do all sorts of "financial misdeeds" before the bank, or the owner of the account realizes what is going on.

Account takeovers and new account fraud are nothing new, but if this much banking information is floating around, it adds to the possibilities.

One of the reasons, we see all the "phishy" e-mails from eBay and PayPal is that account take overs are rampant and highly profitable for the criminals, who frequent their sites.

Not sure of the scope that could be occurring at the banks, but one thing is certain, they don't like to talk (admit) to how much of it is going on.
Ted Richardson | Homepage | 04.02.06 - 9:46 am | #