When it comes to personal data concerns, there’s arguably no nationality who is more keen to keep their private lives private than the Germans. 

This was summed up recently at one cashless business in Berlin, where the owner revealed that people were concerned that paying by card would let the company see into their bank account. 

But in spite of the general suspicion towards digital technologies, there are plenty of situations in Germany where you’re likely to be asked for your International Bank Account Number – or IBAN for short – and are expected to give it willingly.

You may be setting up a new contract for your electricity supply, a new mobile phone or for a rental flat. Or you could be buying something online via a direct debit or hunting for bargains on an online marketplace – in all these cases, giving your IBAN to the seller or company is a must. 

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Though simply jotting down your details is treated as par for the course, are there situations where consumers should be a bit more cautious? 

Here’s an overview of what you should know about the risks of giving out your IBAN and how consumers can best protect themselves against fraud. 

Is giving out my IBAN safe?

According to Matthias Lange, payment methods expert at the German Association of Banks (BVDB), the answer is generally yes – and often there are no ways around it.

“For example, if I want to pay my rent or have my money transferred to my account for a sale via classified ads, I have to give the account details to my landlord or the buyer,” Lange explained on the ING website. “And if I buy something by direct debit, they will also ask for my account number.”

Lange also points out that it’s perfectly normal for companies to include their IBANs on letters and bills they send out, which shows just how relaxed their are about customers having this information. 

What could a fraudster do with my IBAN?

Very little, is the answer – though there are options. 

The most important thing to know, however, is that nobody will be able to access your bank account using the IBAN alone.

In online banking in the EU, two-factor authentication is a minimum. Normally, that means you’ll need a password to access your account, as well an authentication app or a code that’s sent to your mobile phone.

All of this makes it much harder for criminals to access your financial data and make fraudulent transactions.

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However, there is one way that fraudsters could try to use your IBAN to steal money from your account: setting up a Lastschriftmandat, or a mandate for a direct debit. This can usually be done by setting up a simple form and sending it off to the bank or company in question.

Even in this situation, however, the problem can be easily resolved. 

“If a fraudster has actually completed a direct debit with your account details, it is possible that the amount will initially be debited from your account, but you will be able to get the money back quickly and easily,” said Lange.

This strategy is also a risky one for any criminal, since the bank will have plenty of information on hand about the person that the money should be transferred to.  

Another old-fashioned option is for someone to intiate a paper translation by forging your signature on a paper transfer form – though this would probably arouse suspicion as this type of transfer is so rarely used today.

Lange also points out that this would involve the criminal supplying their bank details, and that a swift response to the issue would enable any victims to get their money back right away. 

How can I best protect myself from fraud? 

Though giving out your IBAN is generally safe, you should still remain cautious about giving out more details than are necessary – particularly when it comes to things like passports or information that’s included on personal IDs. 

A major red flag for phishing attempts – that is, attempts to steal your data – is if you are approached out of the blue and asked for specific data.

That could be through an unexpected phone call, a link to a website or an email that looks like it comes from an official source, like a credit card company or a bank. In these cases, a good rule of thumb is that no bank will contact you and ask for a tonne of personal details, and especially not passwords or pin numbers. 

In other circumstances, such as applying for a flat, if are asked for extra information – like your passport and bank account statements – make sure that the housing company is reputable before handing all the information over. 

If in doubt, simply get in touch with your bank and ask them for their advice. It’s in their interests to avoid fraudulent transactions on your account, so they will be more than happy to help.

Another important thing to do is to check your bank account regularly for unexpected transactions. You can generally recover any money that’s taken from you fairly easily, but the quicker you respond, the better.

According to Lange, there are key deadlines to know about if you want to challenge or withdraw a direct debit transaction.

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In normal cases, you have eight weeks to do this – but if the transaction is made via an unauthorised madate, this can be extended by more than a year. 

Though there are no official figures on the level of IBAN fraud carried out in Germany, Lange believes it’s nothing in comparison to the some 11 billion direct debits that are completed in the country each year.

A more common practice is for criminals to buy goods via invoice and get the invoice sent to an unwilling addressee. 

“But that’s more of a problem for the retailer and has nothing to do with fraudulent IBANs,” Lange explained. “And of course, you don’t have to pay the invoice.”