Today I went to add a new checking account to my paypal account. I had funds sent to me through PayPal and I wanted to withdraw them to my checking. My old checking account, that I closed months ago, was still attached to it. When your done adding in your new checking and routing numbers, PayPal has to verify you as the owner by depositing some odd change into your checking then you key in that amount on the PayPal site and you are verified as the owner of the new checking account. Wha la! Ready for use.
I have been a PayPal member for about 10 years. I have used it hundreds of times over that period. I have never really had a problem with it or the way they do business. Yes, they have strange limits on daily transfers that do not work well when your buying or selling big ticketed items but ,for the most part, my transactions are small enough to not invoke those strange limitations on my money.
In the course of setting up my new Checking/Paypal alliance today, two options popped up on my computer screen, "Get verified Immediately" tab vs. the "Wait 2-3 days" tab. Obviously, being a influenced of a microwave, fast food and I want it now world, I chose the "DO IT NOW!" option. Quickly I was on my way to being "Verified Immediately".
This is what I see next...
I have to say that I was dumbfounded. I kept looked up at my browser bar to make sure I was on PayPal's website. I couldn't believe my eyes. No it was not a phishing scam....just some corporation asking for every last bit of information to access my personal checking and savings account. Username, password and security questions.
In disbelief I open the terms and conditions tab at the bottom of the page to read their disclaimer:
Basically....If something goes south, They are not responsible nor are their affiliates, who actually do the accessing of my account.
Apparently it's becoming the normal for businesses to ask for very private information. They already have my debit card and s.s.# with my name , address and DOB, why shouldn't they have my online banking username and password with my top three security questions? Something is not quite right. I understand that if I am going to use their services I am going to have to dish out some confidential information. But, when is too much info, too much?
It was stated that my information would not be saved but if I was uncomfortable with this method I could click on the "2-3 days" tab instead. Obviously they know most of their users are not dumb enough to dish out this information. Besides, what makes PayPal corporation and it's subsidiaries so secure, that absolutely NO PERSON can access my bank account information.
I wrote them a letter telling them that little feature should be against the law. Consider taking it down or finding a better way to verify in a quicker fashion. Please don't desensitize people into thinking it's normal to give out passwords and access to this type information. Fraud, Identity theft and scamming will only get worse with this type of business conduct.
