What to do if the bank makes a mistake in your favor

What would you do with an extra $30,000 in your bank account?

Important points

• Bank errors are rare, but they do happen.
• If there is an error in your favor, the money is not yours.
• Spending money that doesn’t belong to you could land you in jail.

Imagine you are running errands. It suddenly occurs to you that you owe the little girl next door $40 for Boy Scout cookies. Your thoughts are on Thin Mints and Samoas as you drive to the nearest ATM. It’s only when the ATM spits out a receipt that you realize you have an additional $30,000 in your checking account.

What would you do?

Don’t spend this money

Banks around the world process billions of transactions every day – successfully. However, there is always a chance that human error will result in a mistake being made in your favour. If there’s ever a deposit in your account that you don’t recognize, don’t spend it.

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A man named Mike

A few years ago, NBC News interviewed a man we call Mike. Mike had just sold his apartment in Brooklyn, New York, and went to his bank to deposit the sales check. Instead of entering the actual deposit amount, the visibly tired teller deposited $700,000 into Mike’s account.

Mike describes what happened next. He said it was like a million things going through his head in a split second. “Can I keep it, can I spend it, can I invest it and give it back before anyone knows?” Mike remembers thinking.

The answer is no. Spending money accidentally deposited into your bank account is illegal and can get you in serious trouble.

A teenager from Georgia

A Georgia teenager was unfortunate enough to learn how hot the water can be.

It all started in March 2014 when a 70-year-old account holder sold a piece of land and deposited more than $30,000 into his checking account. It just so happens that the 70-year-old shares a name with the teenager. Instead of depositing the check into the older man’s account, a teller mistakenly deposited it into the teenager’s account.

A woman who raised the teenager described how excited he was to find an extra $30,000 in his account. Apparently, the boy and his former handler adhere to the “finder, keeper” rule, and soon almost all of the money was spent. The teenager bought a lot of items for himself, including a BMW.

The young man was charged with theft for spending money that did not belong to him. He was found guilty and sentenced to 10 years probation and money back. While it looks like he got off easy on parole, the teen will have a permanent felony conviction on his record.

What you can expect

Banks conduct regular checks on customer accounts. There is no doubt that the bank will find the mistake and reverse the transaction. If the money has been spent, you can expect them to contact the police.

Claiming that you didn’t notice the error doesn’t bother you. When the funds are spent, you are the one held accountable.

What to do if your bank account suddenly explodes?

Whether the error made you $300, $3,000, or even $30,000 richer, the first thing to do is contact your bank and let them know. It may be painful, but this simple call will keep you out of trouble.

Once the bank has been made aware of this, check your account every day to make sure the transaction has been reversed. In the meantime, pretend the money isn’t there.

In short, treat the “found” money as you would treat a wallet that falls out of your grandfather’s pocket. Pick it up and return it.

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