Paychex direct deposit paystub is identity theft risk

Do you get paid via direct deposit through Paychex? If so, take a look at your paystub/statement. I looked at one recently and noticed that it shows the full checking account number! That puts the account holder at significant risk. All a fraudster needs is to find out or guess the name of your bank and they can pretty easily pull funds right from your checking account.

How is that possible? The ABA routing number for every bank is well known. So with the account number and routing number one can easily perpetrate a fraud on your account. Yes, it is that easy. What kind of fraud? Well, someone could simply order checks from a third party check service and write against your account. Even if you catch it, it’s a pain in the butt and causes serious repercussions for you with the check verification services. And what if you are traveling or busy and don’t see the fraudulent transactions? Consumer protection laws on your checking account are no where near as good as for your credit card. (And forget FDIC insurance. That only protects account holders from bank failure, not fraud.)

So, Paychex, why not put an “X” through all but the last 4 digits? I hear Paychex is a very good company. I hope they will consider redacting sensitive account numbers from direct deposit statements.

The take away for you: Don’t leave your direct deposit statement lying around! Shred it or keep it safe.