Bank fraud is on the rise. When a close friend shares their banking problems with you, you begin to realize how close the problem really is. A close friend who takes care of our hundred-year-old mother checked his bank account on Friday and noticed that the balance had dropped. He stopped at one of the bank’s branches to find out what was going on, and while he was at the bank the balance dropped to less than two dollars. Alarmed, she showed the statement to the bank teller, who reviewed the account. “I’m sorry your accounts have been frozen, please take a seat and we’ll find someone to help you.” Three hours later and several consultations, no one came to her aid.
After four hours of waiting, he went back to check his balances on his cell phone. Two checking accounts and one savings account showed negative balances of over $888,000.00 each! Well over 2.6 million, and still no explanation from the bank. She would just tell her that the manager was busy with other issues and call her back. As of noon on Saturday still no call. She paid her cash, so she did a family gathering on Sunday without credit or debit cards for cash. She is trying to get a lawyer, but with the weekend it will be hard to get help.
I normally check my accounts once a week, but now it will be a daily habit or at least every other day. One piece of advice, avoid using debit cards for purchases. So the fraud could have happened, or someone at the bank decided to take a long vacation.
I also asked about the possibility of opening an account to have a check card and ATM at another bank or even change banks. A hold on any first deposit is ten days while they check with other banks, and if there is a frozen account, they will not open an account for you until the existing account is unfrozen. I currently have accounts at three different banks with small balances at each for flexibility.
With the ability to transfer funds between accounts, it makes sense to keep funds for business and hobbies separate from household expenses. One last point, automatic deposits to a problem account will also not be available, so be sure to stop automatic deposits if the problem occurs. These problems will only get worse as social networks grow. A hard fact of life that we will all have to live with.