Bank transfers between strangers?

[billmurray]

Someone wants to buy something from me via bank transfer, they need my account number and sort code, is it safe t give this information? especially as I dont know them, or os it safe to do so? Thanks

[freakyleaky]

Hi and welcome to the forums.

Without passwords and other security information there's not a lot they can do with just the sort code and account number except pay money in. I use this as a method of receiving payments all the time and have never had any trouble.

What is the payment for? Is it ebay or similar?

[billmurray]

Ok thanks just selling some weighlifitng equipment on a forum.

[freakyleaky]

Just check out the person you are selling to if that's an option.

Good luck.

[billmurray]

I know nothing of the person, just thats hes a respected member of this forum, but thats not much to go by

[transient]

Totally incorrect advice. You can still be the victim of fraud with just these two items of information. One is most notably DD fraud and is increasing on a large scale. A ordinary person why struggle to do this but a 3rd party company could. For example someone could apply for a service and state they want to pay by DD and there are no checks on this and simply goes through.

 

Granted in this example there is the DD guarantee to fall back on but the inconvenience etc. Then again it could be a small amount and some people dont notice.

 

As with anything use extreme caution

[freakyleaky]

I always stand to be corrected.

Thank you for that information Transient.

 

So what your saying is sending a cheque is a real no no as it has acc number, sort code AND signature?

Also sending bank details could be risky if the recipient decided to pay for a service as they could use just the acc number and sort code to do this?

Could these details be used for anything else without further security checks?

[transient]

Hi freaky, I should have clarified a bit more.

 

This blog from earlier this year is pretty conclusive

 

http://cliffordmillerlaw.wordpress.com/2012/01/26/natwest-direct-debit-[problem]/

 

Then there is the infamous Jeremy Clarkson

 

http://www.telegraph.co.uk/news/uknews/1574781/Jeremy-Clarkson-eats-his-words-over-ID-theft.html

 

In answer to some of your questions cheques are being withdrawn but yes the same information could be harvested, the signatures although we would deem important are not checked by the banks anymore except when something is queried by the account holder, it is pretty much automated.

 

These details could not really be used for much more however if you are in contact with the other party you will no doubt have some information on them based on the way you are commuinicating, namely phone number or email addy and home addy if sending the item.. This in turn could be used to search google,, FB, twitter etc and you can then glean more info and build a fuller picture. Just as with anything excercise caution and more importantly of all check your statements weekly at a maximum

 

A Prime example on how to do it with a 3rd party

 

https://secure.savethechildren.org.uk/donate/

 

If you fill out the details the only confirmation to submit the DD is to confirm the link in the email, which you could have setup before. Try a dummy run

 

Another thing people have done is to setup their car insurance on others accounts and names and then made a fraudulent claim against the insurance

Edited August 25, 2012 by transient
more info

[freakyleaky]

Thanks again Transient.

I will be having words with the bank soon. I was told by a "Business banking advisor" that DD's and standing orders could not be set up with those details alone.

You would think I would know better by now than to trust the banks.

[citizenB]

Can the transaction not be done by PayPal ?

[freakyleaky]

The sale is not through an auction site or similar.

If the 2 people concerned have paypal accounts then it can be done that way.

Personally I think there is still a risk with PP as apparently you can recall the money even when it's been deposited in your PP acc.

[transient]

The sale is not through an auction site or similar.

If the 2 people concerned have paypal accounts then it can be done that way.

Personally I think there is still a risk with PP as apparently you can recall the money even when it's been deposited in your PP acc.

I believe when it is sent as a gift payment this cannot be recalled unless the card has been used unauthorised. There is also the chargeback element

[freakyleaky]

Chargeback element????

[transient]

If someone used their Visa debit or credit card and done a charge back for whatever reason.

[freakyleaky]

Thanks again Transient.

Having done some extensive research into the safety of various forms of payment I am happy to say that your description of my advice being "Totally incorrect advice" is harsh to say the least.

Although there are examples of some fraudulent activity arising from handing out this information there is also a whole lot of information to say how safe bacs and bank transfer's are.

 

The cliffordmillerlaw blog you mention is basically a rant about DD's not being cancelled and the trouble you can have with some banks in cancelling a dd. But he is talking about DD's set up legitimately in the first place.

 

The Jeremy Carkson example does highlight the fact that there are many companies who will accept DD set up without a signature.No doubt this will be changed in the future.

Paypal payments, however they are sent, gift, money owed etc, can be recalled apparently. I've just done it.

 

 

As with most things in life there is always going to be an element of risk and I would suggest weighing up the pro's and con's of all payment methods and going with the one you think is the safest. I specifically asked my Bank for advice on the safety of bank transfers and Bacs and was told the risk was negligible.

I personally have accepted and made payments using bank transfer for years and have NEVER had any problems.

 

There are so many links I could post here to highlight how widely used and trusted BT's seem to be but I don't see the point as there will always be someone who'll dig out an an example of the opposite.

 

I suppose cash in the hand is fail-safe. As long as you get a receipt. Oh and make sure if it's a stranger that knows you'll be carrying cash that you have someone with you................etc etc