I can call my credit card company and do a “check by phone” easily. They write down my routing number, my account number and, presto, the money goes away.
When I write a check to my babysitter, I give her the same info, printed on the bottom of the check. Why can’t she call my bank and, presto, have my money go away?
…or can she?
Nothing stopping her but her own ethics.
If you give her a check, you’ve given her everything she needs to print up blank checks with your name and bank info on them.
If she doesn’t have a merchant account, it’s unlikely that her bank would allow her to initiate electronic drafts using just the account and routing numbers.
Recent similar thread. Maybe even what prompted this.
gotpasswords hit the short answer. Aside from printing and forging your own checks, there are hurdles to clear before you can initiate electronic fund transfers. Substantial, but not foolproof.
Right - it dealt with the security problem in handing out your numbers but I was interested in, “Now that they have the numbers, how do they use them?”.
Easiest thing would be to go to an online vendor and buy something. Bill to your account and hope product is shipped before the fraud is discovered.
Directly transferring money from your account is harder, basically you have to be a vendor or have illicit access to a vendor account.
Essentially the same as with credit cards, rather than bill directly from your card to their account they’ll buy goods for their own use or to pawn and convert to cash.