I’ve seen an uptick in bank account issues. I actually enjoyed my class in the Uniform Commercial Code and remember some of it, even though I’m pretty sure my book was a stone tablet.
The UCC provides that you have one year to question a transaction on your account statement, unless you agree to a shorter timeframe. Your bank probably buried a shorter timeframe in your account agreement. This means that you are obliged to review your statements, even if they are online.
There are ways around the contractual restriction, but you really need a lawyer for that.
In my brokerage defense career, I always asked clients if they read their statements. I even had a client try to prosecute their claim by elevating their level of inattention to extreme heights. They brought their unopened statements and trade confirmations to the arbitration hearing. This failure to open the statements was supposed to somehow negate our defense that they should have objected to the activity. They almost seemed to be saying “I was so ignorant of what was going on that you should take pity on me.”
But the cases I’m seeing don’t fit that mold. The one thing that is very important is to read your statements. If they’re online, look at them online. If you can look at your cancelled checks online, glance at them to make sure that they ended up in the right place or weren’t altered in some manner.
How do you avoid problems with your bank account? Use electronic bill pay to start. Most major credit card issuers, for example, receive payment electronically from most bill payment systems. Even if the biller is not receiving payments electronically, the bank’s checks are probably less prone to alteration than the checks in your drawer. If you can set up an authorized withdrawal from your account, that makes it even easier. I have several bills that are paid through a direct debit from my account. Just make sure that you have enough money in the account.
If you make payments to the IRS, these can be done electronically as well. Just go here – https://www.irs.gov/payments You will see the entry on your bank statement as USA. A long time ago, the IRS lost a check we sent them. It took a while to prove they received it. The electronic system avoids this issue.
Also, keep physical security in mind. Don’t leave your checks or banking information laying around where strangers can see it or even steal it.
Finally, practice good password behavior. Don’t reuse passwords. Use a password manager such as the built-in Apple Passwords app or a third-party app such as Bitwarden. One advantage of a password app is you can generate complex passwords with the click of a button. You can also share passwords with other people, such as your accountant or significant other.
This doesn’t mean that you won’t get ensnared by the bad guys, but it’s a good start. And if your bank did something funky with your account that you don’t understand, ask a lawyer to take a look and see if the bank owes you money back.