TL;DR
Keep your bank account safe when using Direct Debits by regularly checking statements, being careful with who you give your details to, and knowing what to do if something looks wrong. Use strong passwords and be aware of phishing scams.
Protecting Your Bank Account: A Guide to Avoiding Fraud with Direct Debits
- Understand What a Direct Debit Is
- A Direct Debit allows companies to take money from your account regularly. You need to give them permission first.
- It’s different from a standing order, which you set up yourself.
- Check Your Bank Statements Regularly
- Look for any payments you don’t recognise. Even small amounts could be fraudulent.
- Most banks offer online banking and mobile apps, making this easy to do daily or weekly.
- If using paper statements, file them securely and review promptly.
- Be Careful Who You Give Your Details To
- Only provide your bank details (account number and sort code) to trusted companies.
- Verify the company’s legitimacy before sharing information – check their website, Companies House register (https://find-and-update.company-information.service.gov.uk/), and read reviews.
- Never give your details over an unsecured phone line or email.
- Secure Your Online Banking
- Use a strong, unique password for your online banking account.
- Enable two-factor authentication (2FA) if available – this adds an extra layer of security. This usually involves a code sent to your phone or email.
- Be wary of phishing emails asking you to log in to your bank account via a link. Always access your banking directly through the official website or app.
- Recognise and Avoid Phishing Scams
- Phishing emails often look legitimate but are designed to steal your information.
- Look for spelling errors, poor grammar, and suspicious links.
- Never click on links in unsolicited emails or text messages asking for personal details.
- Your bank will never ask you for your password or PIN via email or text message.
- Set Up Payment Alerts (If Available)
- Many banks allow you to set up alerts for payments over a certain amount. This can help you quickly identify any unusual activity.
- Check your bank’s website or app for details on how to set these up.
- Know Your Rights and What To Do If Something Goes Wrong
- The Direct Debit Guarantee protects you if an incorrect payment is taken. You are entitled to a full and immediate refund from your bank.
- Contact your bank immediately if you suspect fraud. They will investigate the issue and help you recover any lost funds.
- Report the scam to Action Fraud: https://www.actionfraud.police.uk/