Let’s make the Fed require verification before allowing ACH withdrawals from your account. ACH (Automated Clearing House) is a government agency whom processes electronic transactions governed by the Federal Reserve. In order to process ACH transactions a company has to be registered with the Fed. The problem comes in that there is no verification of identifiable information before an ACH withdrawal is done. All a thief needs are your routing number and account number, found on any check. Not comforting.
This is contrary to say using a credit or debit card online which requires that your name, billing address, and security code match up. With ACH there is nothing. Yup, you heard it. As stated earlier, all a company needs are the routing number and check account number to pull any amount of money from your account. View full article »
