A person unknown to me set up a recurring ACH transaction through State Farm to pay his insurance premium. The money was taken from my checking account. My bank didn't notice that the name on the account was mine and different than the ACH requestor. Isn't there security set up to check for this?
Some banks are able automatically to compare account number and name combinations in ACH transactions with the information on their files. Others are not as automated, and may catch such an item in periodic audits or, as in your case, when the customer cites an error.
In this case, you should immediately contact the bank and enter a claim for a refund. Delaying could mean that you will be liable for some of the unauthorized transfers. The bank will ask you to sign a written statement under penalty of perjury (WSUPP) that you did not authorize the payments. The bank will need that form in order to send the unauthorized transfers back to the insurance company. That will have the effect of preventing the company from sending further charges against your account. If you are concerned that the unknown third party might again try to use your account, you should ask your bank to close out the account and give you a new account number.
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Some banks are able automatically to compare account number and name combinations in ACH transactions with the information on their files. Others are not as automated, and may catch such an item in periodic audits or, as in your case, when the customer cites an error.