What if someone gains access to my account and drains it?
2007-01-26 08:07:21 · 9 answers · asked by charlotte q 2 in Business & Finance ➔ Personal Finance
No it is not identity theft. It is more in line with theft by deception, bank fraud, something like that. I hope you did not come to YA to ask that question before you contacted the bank and/or police. But, good luck. In Illinois, someone stole and cashed checks from my sisters account (at the drive-up window) and clearly the signature wasn't hers, AND she had been using that drive-up window herself for years, and they still didn't prosecte. Go figure.
2007-01-26 08:20:39 · answer #1 · answered by Suzan 3 · 0⤊ 0⤋
Depending on the institution. If it has a sign on the door, or at the tellers window indicating that the institution is a member of the FDIC (Federal Deposit Insurance Corporation), usually a bank, then your account is insured up to $100,000. The insurance only covers bank insolvency. That is if the bank goes broke.
I think that if someone gains access to your account number by a variety of means, from fraud to retrieving statements from the trash;or willful action on your part, and drains it, the bank has little or no liability. It would be a matter for the local police, or the FBI.
Of course you could try to sue the bank for negligence, but I believe that it would be a frivolous suit.
2007-01-26 08:23:41 · answer #2 · answered by PALADIN 4 · 0⤊ 0⤋
The FDIC was created to be a safety net in case banks started going out of business again like they did during the depression. It is not for personal losses. In the case of someone gaining access to your account, report it to the police as soon as possible.
2007-01-26 08:20:40 · answer #3 · answered by rbarc 4 · 0⤊ 0⤋
You didn't say where your account was held.
At a federal bank (or savings & loan), the FDIC insures each account to $100k.
At a federal Credit Union. the NCUA does the same.
Accounts at brokerages are NOT federally insured. Each firm has its own policies.
Ask your institution about theft from the account.
2007-01-26 08:19:18 · answer #4 · answered by ckm1956 7 · 0⤊ 0⤋
That is what the insurance says. The ability of someone draining your account without your help has not been done in the history of US Banking (1920 to 2007). If someone could do this without us, the banking industry knowing who they are, our system of money management would fold.
The insurance on your account will never pay you the face amount. It only will pay you the amount of your loss. So if the bank folds, the US government will pay me $579.01, WOW.
2007-01-26 08:18:46 · answer #5 · answered by whatevit 5 · 0⤊ 0⤋
FDIC insurance is only for the purpose of guaranteeing deposits when the bank becomes insolvent. If money is stolen out of your account it's your bank that covers the loss, not the FDIC. Refer to your account disclosure to determine your bank's policy for refunding in the case of unauthrized use of your account.
2007-01-26 08:22:31 · answer #6 · answered by SmittyJ 3 · 0⤊ 0⤋
i don't think fdic is for that. fdic is for if something happen to your bank like bankrupcy, got burn down or something like that. if someone gain access to your account, that's identity theft.
2007-01-26 08:14:23 · answer #7 · answered by jean 4 · 0⤊ 0⤋
Only if the bank is FDIC insured.
2007-01-26 08:17:53 · answer #8 · answered by BMW BFD 5 · 0⤊ 0⤋
ummmm............. contact you rbank and tell them what is happening to your account before it is drained (obviously you didn't do that or it would not have gone that far). If you contact your bank to report fraudulant charges, they can put a freeze on your account to avoid such a loss. DUH!!!!!
2007-01-26 08:17:42 · answer #9 · answered by a_k 4 · 0⤊ 0⤋