My son's savings account has been compromised!

[lntsmom]

When we moved here a year ago he moved his savings to a bank located inside the local WalMart. This is a small town...the bank, by it's name appeared to be local and it was a handy location. The money he had was what he's saved from birthdays and his First Communion...under $200.

We've never gotten statements on the account, but starting in August he began getting bank ads from an address in Leavenworth, KS. Oddly, his name was misspelled on them. After opening the first one and seeing that it was offering him a car loan (he was 12 at the time!) I started pitching them unopened.

I'm bad, I throw the junk mail in a pile and open it while waiting at my younger son's TaeKwonDo lessons. Last week one came in an odd envelope. I opened it yesterday. It said that his account had been overdrawn for 45 days and he could apply for a loan to cover the amount or deposit money to cover it, but that if he didn't respond they were going to freeze the account.

Get this...the amount he is "overdrawn"? $944!!!! I thought it was phishing, since there was an odd long distance number to call.

I called a local branch to confirm that they do send mail from Kansas. The woman there said that numerous payments had been made from the account. They suggested I go in to the bank immediately.

After the younger son's lesson was over I went home and got the passbook, my older son's SS card, and headed for the bank. They told me that there had been an application for an ATM card on the account, and all the withdrawls had been done with it. HUH??? If you're like me, you remember when a savings account meant that you had to go to the bank in person, with your ID and passbook, to withdraw money. Not any more!!! It seems that, at least in Colorado, you can now get an ATM debit card for savings accounts...and these can be used to make online payments!!!!

Now I'm REALLY freaking out...not only was someone able to change the spelling of my son's name, they also got an ATM card??? Why would the bank issue an ATM card when the account holder was 12...and there was so little money in there to start with? On top of that...why would they have added a second address to the account? If there isn't a second address...how would someone have gotten a copy of my mailbox key and have taken both the card and the pass code? Warning: TMI: I was literally so nervous that I was throwing up at that point.

After some examination, the bank thinks this could be their fault. There was a note already on the account about a mix up in account numbers. That said, here it is almost 24 hours later and I haven't heard back from them. If it's their fault I'm going to insist that they mail letters to all the credit info companies...for both my son's report and mine...explaining. If it isn't their fault, I could be in for a huge mess of trouble!

I'm sharing this as a warning. If you're like me, you had no idea that savings accounts can now have ATM/debit cards attached to them! Be sure to flag your kids' accounts saying that transactions are only to be done when you come in to the bank in person...with ID.

 

[mommy2lt]

OMG !!! What a NIGHTMARE !!!!! I hope everything gets worked out in your favor !!!

 

[FLAngie]

I'm sharing this as a warning. If you're like me, you had no idea that savings accounts can now have ATM/debit cards attached to them! Be sure to flag your kids' accounts saying that transactions are only to be done when you come in to the bank in person...with ID.

Yikes Thanks for the warning. Good luck getting everything sorted out.

 

[TinaLala]

The first thing that would have gotten me would have been the no statement issue. Every bank must send out statements if not monthly, quarterly definitely annually. We watch our girls accounts like hawks. I'm not even on the accounts because I don't want anyone touching their money.

I hope the bank makes good on your son's money and doesn't expect you to pay any of it back!!

 

[lntsmom]

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[lntsmom]

Well, what I heard from the bank today is that they acknowledge that we never applied for and ATM card, nor did we ever submit a name change form.

As to the lack of contact being a tip-off, not necessarily. Laws differ from state-to-state. In fact, the bank involved in this has a policy of doing e-statements unless you request written ones. I wasn't told that when we opened the account, nor did they ever request an e-mail addy to attach to the account.

As to a parent not being on the account...how does that work? In both MO and CO I have been told that they cannot open a savings account without having a parent/guardian name on it. Does this vary by state or is it based on the type of institution?

So far the bank is being calm leaning towards apologetic. The local branch manager is convinced that this is a mistake on their part. They've been researching for 3 days now with no results, though.

At this point I am fairly certain it will all go away and my son will get his money back. It's a waiting game for now.

Perhaps needless to say, when they get this fixed the first thing I'll do is close the account and move his money to the local credit union...and make sure that account is flagged!

.

 

[eduk8r26]

Here's something new I just heard about. Children's SS#'s are being stolen often by illegal immigrants to open up ID's, credit and such. They use children because it is much easier for them. The parents often don't find out about it until the child is 18 or older.

 

[Tricia819]

I don't see how they even could imply that it was somehow your fault. You didn't apply for the ATM and your son is a minor.

I will definately be checking my kids credit reports when I do my annual credit check this year.

 

[kathianne]

We have Lifelock with fraud alert. If anyone tries to open an account, increase a limit or take out new credit in your name or your child's, the issuing merchant has to verify the applicant's identity first by calling a pre-determined phone number and use pre-determined codes.

Its worth the peace of mind!

 

[kathianne]

Just palin DON'T give your child's SSN for any reason.

I never give my children's ssn or mine for any applications for doctor, dentist, etc. They don't need it to file a claim, that's what the insurance ID number is for. They used to use SSN for insurance claims, several years ago they switched over to a user ID number, many doctor and dentists still ask for a ssn anyways. I just leave it blank, its none of their business!

 

[Donalyn]

I also don't give out my SSN to any doctors. But in MN, it is perfectly legal for the employee number used for medical plans to be the SSN. So, while my DH's SSN is not on the insurance card, that is the number that is used for insurance purposes. I don't like it, but what can you do....

 

[santa's surpriz]

I don't see how they even could imply that it was somehow your fault. You didn't apply for the ATM and your son is a minor.

I will definately be checking my kids credit reports when I do my annual credit check this year.

I work as a banker in a good sized bank...I have never been able to issue an ATM for a minor. Especially at age 12. IF the parent insists I will do one on their name but not the kids. Bottom line is bank made the error. Most banks have a Know Your Client policy not to mention Patriot Act, IDing the client is a must. Clearly some one looked at the id and over looked the birthdate. Oh yeah, not mention if was set up as an UTMA account..there should technically be no withdrawals until the minor is of age! This case is a perfect example why I advocacte opening an account with children's ss# asap, Can you imagine the mess if you did not find this out until he applied for a car loan or something at age 18?? THieves do not go after dead people's ss#, they get caught too quickly. However they can live off an infants ss# for 18 years.

 

[santa's surpriz]

Here's something new I just heard about. Children's SS#'s are being stolen often by illegal immigrants to open up ID's, credit and such. They use children because it is much easier for them. The parents often don't find out about it until the child is 18 or older.

I always tell clients to set a savings as soon as possible , even they only put in $10 because it establishes the ss # and can often red flag if a thief get the numbers.

 

[amyj1024]

You need to watch out for Magazines selling your child's information as well. My MIL bought a magazine subscription for my DD (5) and then we began getting Discover card offers, etc. I called and complained to the companies that sent them to take her name off, as she is a minor. People can steal those apps out of your mail or garbage and apply under your kids names.

 

[surfgirl]

Something doesn't smell right... do you trust the bank manager ? Could it be an inside job ? The fact that they are being apologetic and getting it fixed... have they called the police ? I would seriously think about it, b/c if they are rolling over so easily, then they don't want more serious consequences.

Also, when they reimburse you the funds, make sure they also reimburse the interest during the time period.

When you have gotten satisfaction, I would close his account and ask for all documents with his SS# to be shredded. They should issue a bank check which you can take to another bank and have it deposited immediately. Don't assume that it can't happen again from them -- there are too many banks out there that want your business (albeit small) for you to trust someone who has already majorly screwed up.