Debit Order Flaws

[Quixotic]

Just had deductions from my account I did not authorise - 3 amounts less than R100.

Banks must have a mandate but this can be electronic or voice. The electronic mandate does not need to be signed so it can just be faked. If mandate is an email this can also be faked. A voice call can also be faked. How does the bank know who is on the other end assuming they even request or check this. So, all is needed is your name and account number.

Banks just simply assume that if a request is made it must be a genuine agreement with the third party and yourself. They then wait for the account owner to notice the unauthorised amount and lodge a dispute within a time-limit. Online dispute filing is available but in the end I suspect one will have to go there in-person (long queues and only at your branch). They then charge you for each dispute and reversal is only made if the scammer cannot produce the mandate within a certain number of days. Hopefully this then times-out with the genuine fraudsters.

The only way for the system to have credibility is if the banks check (but not foolproof) or they request a specific authorisation from the account holder beforehand (e.g. via cellphone in the way credit card transactions are done).

 

[backstreetboy]

Why I don't do debit orders. EFT's ftw and it's cheaper aswell.

 

[R13...]

Why I don't do debit orders. EFT's ftw and it's cheaper aswell.

That wouldn't stop the fraudulent debits the OP suffered, so your comment helps nothing

 

[backstreetboy]

That wouldn't stop the fraudulent debits the OP suffered, so your comment helps nothing

Pretty sure they get your detail via companies you do have debit orders with leaking it.

 

[R13...]

Pretty sure they get your detail via companies you do have debit orders with leaking it.

Not always. I had one from an account I never give out, it's just an account I put cash away in.

 

[backstreetboy]

Not always. I had one from an account I never give out, it's just an account I put cash away in.

Wow scary. Why I love Capitec and having access to 5/6 accounts. I rarely have more than R50 in my main account so the fraudulent DO's will not go through.

 

[archibald]

The matter of unauthorised debit orders are getting worse ,based on the complaints on social media.My understanding is that the Companies administering debit orders dont have to register with PASA.This new debicheck system which will be introduced on a date still to be determined, will only apply to new debit orders.Can members venture a solution.

 

[ToxicBunny]

The matter of unauthorised debit orders are getting worse ,based on the complaints on social media.My understanding is that the Companies administering debit orders dont have to register with PASA.This new debicheck system which will be introduced on a date still to be determined, will only apply to new debit orders.Can members venture a solution.

Yeah... use cash and close your account... you don’t seem to get along with banks at all

 

[backstreetboy]

The matter of unauthorised debit orders are getting worse ,based on the complaints on social media.My understanding is that the Companies administering debit orders dont have to register with PASA.This new debicheck system which will be introduced on a date still to be determined, will only apply to new debit orders.Can members venture a solution.

Wow scary. Why I love Capitec and having access to 5/6 accounts. I rarely have more than R50 in my main account so the fraudulent DO's will not go through.

^^

 

[Friday13th]

A friend of mine got a job overseas and has been out the country for 3 years now. He made a new life for himself: new bank accounts, etc. Before going, he left me his SIM to make sure his number remained live so he could continue to use his SA WhatsApp account while in the new country.
A week or 2 ago, I received an SMS from some strange company saying they would start debiting his FNB account starting June the 1st. I contacted him and he laughed, thinking I was joking when I asked if he had authorised any company in SA to start a debit order. He said he's not in the country, so how the hell could he have done that? FNB told me that he must phone them to stop the debit order. It can't be done via the app or online banking. His bank account is pretty much inactive: no debit orders, no purchasing of any sort, no deposits made, no EFT's... There's not enough money in there for the fraudulent debit order to happen anyway. How on earth the criminals managed to authorise a debit order on there is beyond me! Unfortunately he did not cancel it within the 5 day period they give. He didn't cancel it at all - didn't make the international phone call.

Today is the 3rd day of the month and I've messaged him to check his account for the debit order. Different time zones means I'll get a response tonight (if at all).

 

[Former member 61586]

Why I don't do debit orders. EFT's ftw and it's cheaper aswell.

This. Only people I owe money (home and vehicle finance) get to debit order. Insurance I am still negotiating, but should also be paid via EFT. Rest I pay via EFT.

 

[Former member 61586]

Pretty sure they get your detail via companies you do have debit orders with leaking it.

this ^ VERY rare to have an unauthorised debit order. It can still happen, but not giving your details to every company definitely helps to mitigate the risk.