How do bank drafts / electronic debits work?
August 1, 2014 3:22 PM Subscribe
I believe that bank account and routing information is sufficient to initiate a bank draft or electronic debit of one's bank account. I had always assumed that to be true, but my boss found the information alarming and wants to secure our accounts. I'm ... not sure it can be done. Can anyone explain how it works and why that system isn't more frequently abused?
I called our bank, and they confirmed that they don't ask for a signature or agreement before processing an electronic debit. If that's the case, why isn't fraud more common? Google returns some results about fraudulent debits by telemarketers, but nothing in the business world. Explain it to me so I can explain it to him!