Risk of letting others know your IBAN

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If someone knows your name and IBAN Can you be scammed or cheated in Germany.?

 

What all are the chances of misuse and getting cheated in Germany.?

 

For example I see in the amazon.de for the purchase through direct debit just entering an IBAN seems sufficient.!! without any signatory consents of the owner of the bank account!. Isn't this a big loop hole.

 

Likewise can you list what all are the other risk associated with IBAN and how can I protect myself.

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You can cancel unauthorized debit orders (and even authorized ones, but that may have unpleasant consequences) within (I think) 6 (8?) weeks.

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Amazon is one of the better ones. It has two factor authentication for login. Whenever I add a new address it asks me to again enter the CCV number from the back of the card. But, not I would not give them my main IBAN number. Most people have an account for salary and use the same one for bills. Thus, a unexpectedly large direct debit could entirely empty the account. I think it's better to have an entirely separate account for paying bills etc. and just do an automatic payment monthly into that account.

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2 hours ago, scook17 said:

Amazon is one of the better ones. It has two factor authentication for login. Whenever I add a new address it asks me to again enter the CCV number from the back of the card. But, not I would not give them my main IBAN number. Most people have an account for salary and use the same one for bills. Thus, a unexpectedly large direct debit could entirely empty the account. I think it's better to have an entirely separate account for paying bills etc. and just do an automatic payment monthly into that account.

Giving someone your IBAN is not the same as setting up a direct debit, or a payment option on Amazon.  If you owed me money, then I could give you my IBAN to allow you to transfer the money to me.  As I see it, there is little or no risk involved for me as you cannot create direct debits or transfers from my account using that IBAN - you would need to know my online bank access details etc etc.   

 

Setting up a direct debit, or setting SEPA as a payment option, in Amazon is another matter.  There, you are authorising the other party to take variable amounts of money from your account (e.g. gas, water etc.) and (for direct debits) are covered by the direct debit guarantee (in the UK at least), which means you get the money back if the other person takes the wrong amount. 

 

If you set-up a SEPA payment method on Amazon or elsewhere, then you are at risk if anyone gets access to your Amazon etc account but that is no different to any other payment method stored in Amazon or other online retailers.  If that payment method is a credit card then you may be covered by section 75 of which ever Act it is (in the UK at least) but SEPA would presumably be as risky as storing your debit card details in said online retailer.  

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I'm a freelancer and I write invoices at the end of every month, all of which have to include my IBAN number so the clients can transfer the payments to me.  I have never had a problem with this.

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On 6/24/2021, 5:56:30, jeba said:

You can cancel unauthorized debit orders (and even authorized ones, but that may have unpleasant consequences) within (I think) 6 (8?) weeks.

At least 8 weeks. I've already done it twice.

You can also reverse older ones, but for that you would need something like a court order.

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2 hours ago, GaryC said:

As I see it, there is little or no risk involved for me as you cannot create direct debits or transfers from my account using that IBAN - you would need to know my online bank access details etc etc.   

Who can create transfers from just your IBAN? I set up a Depot earlier this year, and okay it's a bank but it's not the same bank as for my Giro Konto. However just by giving them the IBAN they were able to immediately (well after 4 days) take €10K from my account and a recurring payment every month. 

 

 

I also have a small storage locker. I set it up not long after I arrived, and to be honest there was a bit of language confusion, but I'm certain I didn't give them any bank details and instead paid for the first few months with my UK credit card. When an invoice arrived I paid it online from my German bank account, and repeated that 3 or 4 times. But one month I was late and they deducted the money from my account automatically, and continue to do so. But I don't know how.

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10 minutes ago, Dembo said:

Who can create transfers from just your IBAN? I set up a Depot earlier this year, and okay it's a bank but it's not the same bank as for my Giro Konto. However just by giving them the IBAN they were able to immediately (well after 4 days) take €10K from my account and a recurring payment every month. 

 

 

I also have a small storage locker. I set it up not long after I arrived, and to be honest there was a bit of language confusion, but I'm certain I didn't give them any bank details and instead paid for the first few months with my UK credit card. When an invoice arrived I paid it online from my German bank account, and repeated that 3 or 4 times. But one month I was late and they deducted the money from my account automatically, and continue to do so. But I don't know how.

Maybe it's different in Germany than in the UK but I doubt it.  The first para sounds to me as though your have set up a direct debit relationship or a one-off payment and a standing order.  I cannot see how the second para is possible absent authority from you but again, perhaps the German system is different...

 

Edit - if it was my account/financial matter, I would be all over it with the bank!

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8 hours ago, GaryC said:

there is little or no risk involved for me as you cannot create direct debits or transfers from my account using that IBAN

At least before the SEPA system was introduced this was possible (using a national account number obviously as then there was no IBAN). You merely had to claim that you had authorisation by the account holder and if were prepared to lie and commit a criminal act it would have worked (but the account holder could still have reversed the charge within a certain time frame). I´m not sure about how that has changed, but I guess it has.

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