How can someone else other than the account holder transfer money out of that account? Based on my experience anyone can transfer money in to an account, but only the account holder or an authorised user can transfer it out.

It was probably bank error. Then it took a month for the bank investigation unit to find the internal bank staff that made the error and get an explanation.

The best banks for consumers are the mid sized banks. They're big enough to have all the services, but not the bureaucracy.

Bank error or money laundering?

Nah, shit happens.

It's easy to stamp in the wrong account number.

And have the name match?

Tell me they check the name... Right?

There are many flows that permit direct debit, and that may not have the strongest authentication or protections.

If you want to test, post your bank details here!

It's different for every country but for the article's example of the UK, Jeremy Clarkson put his bank account details in a column and got owned by someone setting up a direct debit from his account https://www.theguardian.com/money/2008/jan/07/personalfinanc...

Clarkson wasn't doing the bank any favors by posting his info, however this is the bank's failure to properly verify the transaction(s). The bank was tricked, and the bank is responsible for this error. It's fraud, plain and simple.

The article ends with him saying "I was wrong and I have been punished for my mistake" but this is just his schtick, it's factually incorrect.

I live in a small community and many local charities and non-profits post their bank info online, so that people may make donations by bank transfer or standing orders. Fraudsters periodically manage to trick the local banks into transferring money from the charity accounts and everyone freaks out, which is complete bullshit. The banks always restore the funds, and scold the charities for having this info online. I've experienced this myself at two different organisations. As a result charities become more reluctant to publicise their bank info and predictably, donations lessen.

It's important to keep perspective and hold the responsible party accountable, instead of trying to compensate for the bank's failings.

Yeah, direct debit is the only way I can think of this to happen where it is not a bank error (like in a previous reply). While certainly a convenience, I am still a little bit wary of allowing any company to automatically take money out of my bank account directly.

Having an automatic credit card payment is something slightly different though.

Yeah this is quite strange. I know I can send my money to any account I want to. But from there it's not my money anymore, I can't send it further. Perhaps it was some social engineering hack.

It's pretty easy. Try adding your spouse's checking account to your credit card payment list. It works, no problem.

The only protection that you have are the internal controls at the biller.