Option to freeze outgoing ACH at Vanguard?

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steve50
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Option to freeze outgoing ACH at Vanguard?

Post by steve50 » Tue Sep 12, 2017 11:31 pm

Similar to credit freeze, is there some type of option to freeze ACH & wire transfers out of Vanguard account? Do not want to delete the banks I have in there, but some way to put freeze them and when needed, you can unfreeze them (similar to credit freeze). What is the best way to be protected from this?

kirent
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Re: Option to freeze outgoing ACH at Vanguard?

Post by kirent » Wed Sep 13, 2017 1:10 am

You can freeze your account and put a Medallion Signature Guarantee requirement for distributions. Just make sure you have access to an institution that can grant those when you need it.
Disclaimer: I am not a financial or legal expert and all information I provide is given for entertainment purposes only, at your own risk and with no guarantees of accuracy.

carolinaman
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Re: Option to freeze outgoing ACH at Vanguard?

Post by carolinaman » Wed Sep 13, 2017 6:41 am

I disconnected link from Vanguard to my bank because of the inherent risk and the fact I rarely redeem funds from Vanguard. When I transfer money out of Vanguard, I can setup link temporarily to handle or rely on snail mail. So far, I have done snail mail because it is only a few days longer.

This works for me as a retiree because I do not need much access to my Vanguard funds. My RDMs at end of year go to my Vanguard taxable account. I would probably maintain the link between Vanguard and my bank if I needed fund transfers regularly.

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nisiprius
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Re: Option to freeze outgoing ACH at Vanguard?

Post by nisiprius » Wed Sep 13, 2017 7:24 am

I don't see the necessity, since you can't add a bank quickly, the procedure involves receiving a piece of physical mail sent to your address so it is very unlikely that it could be done without your knowledge, and you can only add bank accounts that belong to you.

If you know about all the linked bank accounts and you know that you set them up yourself and they really are your own accounts, I don't see high risk.

The high risk would seem to be situations that are intentionally designed to allow transfers to accounts that are not yours. This would mean bank bill-paying services, for example, and services like PayPal. I was shocked to discover recently that some banks appear to allow payments out of a bank account to third parties for amounts as high as $25,000 and, in one case, $100,000.
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carolinaman
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Re: Option to freeze outgoing ACH at Vanguard?

Post by carolinaman » Wed Sep 13, 2017 7:39 am

nisiprius wrote:
Wed Sep 13, 2017 7:24 am
I don't see the necessity, since you can't add a bank quickly, the procedure involves receiving a piece of physical mail sent to your address so it is very unlikely that it could be done without your knowledge, and you can only add bank accounts that belong to you.

If you know about all the linked bank accounts and you know that you set them up yourself and they really are your own accounts, I don't see high risk.

The high risk would seem to be situations that are intentionally designed to allow transfers to accounts that are not yours. This would mean bank bill-paying services, for example, and services like PayPal. I was shocked to discover recently that some banks appear to allow payments out of a bank account to third parties for amounts as high as $25,000 and, in one case, $100,000.
Perhaps I am being overly paranoid, but one of my fears would be that someone gains online access to my bank and Vanguard account, and transfer large sums from Vanguard to my bank and then transfers monies elsewhere. Safeguards like email alerts should reduce exposure, but why take any risk with this if you do not have to.

cherijoh
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Re: Option to freeze outgoing ACH at Vanguard?

Post by cherijoh » Wed Sep 13, 2017 8:12 am

If someone gained access to both your bank accounts and VG accounts then worrying about the current linkage between the accounts is the least of your worries IMO. Focusing on having good unique passwords for each account and avoiding phishing attempts are your first lines of defense.

goingup
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Re: Option to freeze outgoing ACH at Vanguard?

Post by goingup » Wed Sep 13, 2017 11:06 am

I don't think it's necessary. Set up both text alerts and email alerts for any transaction that happens in your accounts. If something happens that you didn't authorize you should be able to call Vanguard immediately. For me, at least, the inconvenience of not being able to ACH to and from brokerage accounts would be a huge.

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