I did some research on IAV, including an email exchange with a close personal friend who is the head of IT security for a major US airline.
Here’s what I found:
1. IAV is, at its core, a money-saving device for the organization requesting your bank login name and password. It works instantly, unlike micro-deposits, which require the organization’s employees or contractors to physically make the deposit and do the verification.
2. For a large organization, like a stock trading company or a major financial firm, using IAV is generally safe.
HOWEVER: Information that is encrypted can likewise be decrypted by an online hacker. Large organizations employ IT security professionals to prevent this; a mystery shopping company with a few employees most likely does not.
If you are sending your full and complete bank login information to an organization, there most certainly IS an electronic signature of your information present within the organization’s system. It IS “stored,” albeit encrypted. But encrypted data can be accessed hacked, as stated earlier.
3. Allowing access to your bank via a release of your login ID and password is problematic for the following reasons:
A. It potentially allows access to multiple accounts (savings, checking, etc.) - unlike a traditional routing number/account number setup, which pinpoints one account.
B. In a worst-case scenario, the information could be decrypted and your password changed by the organization requesting the login information. Not only could you be locked out, but by releasing your login information to a third party you could be surrendering your right to recover funds lost in a hacking event.
C. If you read the disclosure information closely on the IAV, it will generally include a release of responsibility. Briefly, you are giving up your rights to recover funds lost in a theft. Read the “fine print” carefully.
SHORT VERSION: The IAV will save Sentry Marketing money and time, but provides little benefit to you. There are significant risks involved in the process, especially with a small organization. Not recommended.
Edited x2 for spelling and clarity.
Edited 2 time(s). Last edit at 01/28/2019 02:55PM by ColoKate63.