Setting Standing Order

roker

Registered User
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I am in the process of setting up a new Internet provider.
I was surprised that they asked for my IBAN number to set up payments .
This got me thinking, as anyone's IBAN is quite public (we give it to others to make payments to us). What's to stop anyone using the IBAN to take payments from our account?
 

ClubMan

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45,338
Isn't there some other check, such as two factor authentication (e.g. a security text to your phone), when you're setting up the payment?
 

mct1

Registered User
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205
A standing order is set up by an individual, ie you, with your bank to pay a regular defined sum into another account. You have full control over it. A direct debit (which is presumably what you'll have with your internet provider) is where you give a service supply company or public sector organisation like Revenue your bank details and signed mandate to withdraw unspecified sums on a specified date. You can't just withdraw money from someone else's account with their IBAN but if you were planning to conduct an elaborate scam it might be a useful piece of information. We should all be on the alert for scams.
 

ClubMan

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45,338
Not in this case
I'm pretty sure that my bank (PTSB) does a two factor authentication check when setting up new payments.

Say you have somebody else's IBAN, describe how you'd set up a standing order on their account with just that info.
 

Monbretia

Registered User
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2,266
You're talking about a direct debit rather than a standing order which is not something you are actually setting up, it's the provider who debits your account rather than in a standing order where you send the money.
 

roker

Registered User
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1,929
I'm pretty sure that my bank (PTSB) does a two factor authentication check when setting up new payments.

Say you have somebody else's IBAN, describe how you'd set up a standing order on their account with just that info.
That makes more sense, when I went into the branch BOI and I put this scenario to them, the answer was "it doesn't work that way" it looks like a hole in their system
 
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