Direct Debit fraud occurs when a debit is taken from your account without the proper authority from you set out in a valid Direct Debit request. Sometimes this has happened when BSB and account numbers published online or in a public document have been used via Direct Debit to debit accounts.
Generally, providing your BSB and account details to suppliers is safe, as the details are used to deposit, rather than withdraw, funds. However, there's a possibility that your details may be used to set up direct debits if the debiting business doesn't verify ownership of the account with a signature or ID.
If you do enter the wrong account or BSB number the payment will be made to the wrong account (unintended recipient). This is known as a mistaken internet payment. The ePayments Code sets out a process that will help consumers get your money back if it has gone to the wrong account.
It's not the same as a scammer obtaining your credit card digits. No one will be able to withdraw money from your personal bank account if all they have is your account number.
The easiest way to become a victim of a bank scam is to share your banking info — e.g., account numbers, PIN codes, social security number — with someone you don't know well and trust. If someone asks for sensitive banking details, proceed with caution.
But if scammers gain access to your bank account number, they can use it for fraudulent ACH transfers or payments. For example, scammers could use your bank account details to buy products online. Or worse, they could trick you into sending them money that you'll never be able to get back.
It's generally considered safe to give out your account number and sort code, but you should always use common sense and avoid sharing your bank details with people you don't know or expect payments from.
But as with any other financial information, keeping your details safe is important. Someone could, for example, use your bank routing number and checking account number to order fraudulent checks. Or they may be able to initiate a fraudulent ACH withdrawal from your account.
It is not possible to withdraw money from your account just using an IBAN number and a copy of your identity card. It is however possible to exploit your IBAN, for instance when someone arranges for a direct debit payment using your IBAN when online shopping.
Contact your bank immediately to let them know what's happened and ask if you can get a refund. Most banks should reimburse you if you've transferred money to someone because of a scam.
Maintaining confidentiality
The Bar Standards Board (BSB) would like to remind barristers that all client communications are privileged and that such communications, client information and Chambers confidential data (financial or otherwise) must be stored, handled and disposed of securely.
A BSB (Bank-State-Branch) is a six-digit number that identifies banks and branches across Australia. Use our locator tool to find the BSB of a specific branch. Just type in the branch location then click on the branch you need the BSB for. Got the BSB but need the branch details?
BSB numbers help Australian banks direct money transfers properly, whether the money transfer is coming from across town or across the world. Knowing what a BSB number is, what it includes, and where to find it will help ensure that your next domestic or international money transfer goes smoothly.
Is a BSB code the same as an IBAN? BSB codes are not the same as IBANs (International Bank Account Numbers).
What is the safest way to accept payment? Besides cash, a certified check is the safest way you can receive a payment to your business.
Phishing
With phishing, hackers attempt to steal valuable information by impersonating a trusted source. Phishing schemes can come in several different forms, including phone calls, fake websites and sales emails.
Sending money domestically or internationally via bank or wire transfer is safe to do. But only if you are 100% confident about who the recipient is. Most bank transfer fraud is done through mistaken identity – rather than a fault in the system.
Your bank should refund any money stolen from you as a result of fraud and identity theft. They should do this as soon as possible - ideally by the end of the next working day after you report the problem.
Is it secure to give out my bank account info and IFSC code? IFSC codes are given to each bank and branch to conduct transactions securely. In this way, dishonesty and theft are completely ruled out. With IFSC Codes in place, a security breach is unlikely to occur.
Overall, there's very little someone can do with just your account number and sort code apart from making a deposit into your account in order to pay you. However, always be vigilant with whom you share your personal details. Remember never to share your PIN with anyone.
Wire transfers are generally safe and secure, provided you know the person who's receiving them. If you use a legitimate wire transfer service, each person involved in a wire transfer transaction should be required to prove their identity so that anonymous transfers are impossible.
No, that information does not allow someone to withdraw money from your account. It is not possible for someone to withdraw money from your bank account if they only have your account number, branch number, and institution number.
What they want are account numbers, passwords, Social Security numbers, and other confidential information that they can use to loot your checking account or run up bills on your credit cards. Identity thieves can take out loans or obtain credit cards and even driver's licenses in your name.
The safest way to transfer money is to use a reputable, regulated money transfer provider or your bank account. Companies specialising in international payments, with robust security measures will help protect both parties involved in an international transaction.