Strategies for savings/checking account fraud protection

[tkell]

Due to some fraudulent activity on my main checking account, I started thinking about how I have my money setup may not be the best.

My checking account in all actuality is a savings account, basically my main sum of cash sits there. I have a Roth IRA as well (I am investing).

My question is this. Would it be better to have a separate savings account that has no ATM card tied to it to hold the majority of my cash and then keep the checking account with a much smaller amount of money for day to day purchases. My thinking in this is that if my card gets hacked again, the most I could be out for any period of time would be the balance of the checking account.

Any thoughts on this or personal suggestions on how others have their accounts setup?


Thanks

[bjl584]

You could do that, or you could call your bank and ask them to put a limit on your debit card withdrawl limit. Say, no more than $500 per 24 hour period. Actually, your card may have this already.

[disneysteve]

Do you have any idea how the criminal got access to your checking account?

[tkell]

Do you have any idea how the criminal got access to your checking account?

No clue. Just a few online charges. Nothing huge, just annoyed that I have to have a new card mailed.

[tkell]

You could do that, or you could call your bank and ask them to put a limit on your debit card withdrawl limit. Say, no more than $500 per 24 hour period. Actually, your card may have this already.

Yeah, the limit is $3000 daily. It would be mostly for peace of mind I suppose.

[disneysteve]

Do you shop with a debit card tied to that account? If so, that is probably where the fraud occurred. I would stop using the debit card. That is one of several reasons I don't use one. Stick to a credit card and cash. With a credit card, when there is fraud, which still happens of course, you aren't actually out any money. You just let the card company know the charge was fraudulent and you don't have to pay it. With a debit card, you are out the money until they correct things.

[littleroc02us]

I use a Visa check card that is attached to my checking account which never has to much money in it, except once in a while and I also have a savings account that is a backup to the checking account in case of overdraft which can't be accessed by the check card. Once in the past a fradulant charge went through and I called the bank asap. Because it was a Visa card it was covered under the Zero liability protection noted on Visa's website. They gave me a new card in a week with a new number and credited my account with the charges. I have also set up a maximum withdrawl from my card of $200 a day, which if I lost that for a week and got credited a week later wouldn't be a problem at all. If I make a big purchase I simply call the bank they raise the daily limit just for that day and the next it goes back to normal.