Is it really illegal to have a dummy bank account?


KuroiKai-tmk's avatar
Let's just say that I have to be safe when it comes to receiving money online with PayPal. Because I still can't trust PayPal. Even if everyone says it's safe. I just can't risk my own bank account to do that.

I remember someone told me that it's illegal to have a dummy account. And then said that you'll go to prison for having a dummy bank account even if you're trying to keep your own bank account safe.
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CharityK's avatar
If by "dummy" you mean put under an assumed name and fake information than yes, VERY illegal. If youre talking about just a separate account for Paypal with your real information and everything than no....but than its not really a dummy account and your information, credit, and money is still at risk so theres really no point. Paypal is safe. Millions of people use it and trust it and statistically the safest way to pay for something online.
EbolaSparkleBear's avatar
Most nations should allow you to have multiple bank accounts as long as you're using your legal name or documented business name.

If you're setting up an account with fake and false information then yeah, that's stupid and illegal.

If you're not a US citizen why are you here asking this question in the first place?:no:
Ask your BANK!
Starlit-Sorceress's avatar
Do you live in the USA? If you're talking about creating a separate bank account to deposit income from your art business, that's not only 100% legal, but the IRS prefers it. Just don't use a dummy name. If you don't have a business name yet, call it something like YourFirstName's Art.
Aapis's avatar
Paypal isn't any more or less trustworthy than any other payment process out there, but they are the most popular by far. Basically if you can't trust Paypal, you can't trust anyone.

Not sure what this "dummy account" business is about, but you can't create a bank account using fraudulent (i.e. made up) information. That's just common sense.
Lytrigian's avatar
No, that's stupid. Of course you can have second bank accounts. As long as you're not using it for fraudulent reasons or to hide income from the tax man, you're fine.
DJ0Hybrid's avatar
Using real details is fine, but the bank may not be exactly happy about someone having an account that is both inactive and with little to nothing in it most of the time. They might also get suspicious when you use it to transfer money. The best thing to do is talk to your bank about dealing with a fraud transaction instead of making a dummy account.
angelxxuan's avatar
you can always get a card which you add money when you need it. I got it and use it here and there. there's a small fee but that's about as much as an interest on a credit card would be. and there's also some which have no fees and others which act more like a bank account. it is another option than opening another bank account.
bohobella's avatar
It's not illegal if you're using your real credentials, but I think you're just desperately masking the real issue here: Your paranoia over PayPal, of all things.
10000Greetings's avatar
If you don't want to have the money transferredf from PayPal to your own bank account, then you can always leave it in PayPal as an account balance. Otherwise, you will need to have a bank account into which you can transfer the money. I am curious as to why you wouldn't trust Paypal, though?
Scyoni's avatar
I get the reason - my father's spent a lot of time cramming the evil of paypal down my throat! xD Not sure how much of a real concern it is though.

Apparently there's something in the agreement that says they can freeze your BANK ACCOUNT if they see what they think is fraudulent activity in your paypal account, and I've heard they miss the mark and tag a number of activities fraudulent by mistake.
andanar's avatar
Depends what you mean by that and where you live - laws vary around the world. Here's a thought - talk to your bank rather than a security guard or on an internet forum...
Mercury-Crowe's avatar
I think your problem is in your wording. A 'Dummy Account' is one that has been set up with fake details in order to hide your true identity.

This is illegal.

But it's not illegal to make a second account with your name and details, unless your personal bank has something against it.

You can also make accounts with different banks.
LaEmperatrizMariana's avatar
You can have an extra bank account, as long as your information for that is correct and true. "Dummy accounts" are the ones with the made-up name and details, those are the illegal ones.
Avenvia's avatar
Have a second account by all means (and put whatever money you feel necessary into it from your main one) but don't put in fake details. If you use the word 'dummy' to describe it, that's probably why people are saying it's illegal; they assume you mean one under a fake name and address. It's not illegal to have multiple accounts though - I have three and I'm not in business or anything - just as long as the details are correct.
LadyZelda1's avatar
Why do you need to call a separate account a dummy? Lot's of people have separate accounts, like one for their business and one for their personal life, or even one for him and one for her and one for both of them if married. Nothing wrong with having two accounts or accounts in more than one bank.
AlexisIceFire's avatar
You can usually have one for work or other such things just tell them the truth and say you want it as a spare
divine--apathia's avatar
Depending on where you live, and IANAL,

having a spare account =okay.
having a spare account with fake details = not okay.
HeavenhairSixes's avatar
It depends on where you are, laws vary. And whether by 'dummy' account you are talking about a bank account made in somebody elses name or false identity. Having bank accounts not in your own name tends to be the kind of thing than most legal systems crack down on because they can be used for tax evasion, money laundering and other activities that upset the authorities. You should be able to have as many back accounts as you want in your own name.
CatapultedCarcass's avatar
Just open another bank account. As long as you don't register it with fake details then you're not breaking the law.
KuroiKai-tmk's avatar
Aaahhh... That's what this one security guard told me. When I told him about making a dummy bank account, he simply said "Cannot. Otherwise you go to prison." And I didn't even say anything about using a fake name. I guess his English was too limited. Either that, or he couldn't explain things in English as he can only explain stuffs in Malay.

Thanks. I think that clarifies things clearly.
Felissauria's avatar
Don't ask security guards about bank shit, they don't know anything. Their job is to stand there all day. Talk to a bank employee.
SimplyLemie's avatar
Maybe it's because you call it a dummy account? I don't know if it's actually called that in English (then, I'm sorry), but having multiply accounts for different reasons are okay as long you keep it in your name and all that.

I'm guessing that you mean you just want another account so you can have your money in one and have the other to do your paypal business with so you won't have to have all money in the same place if something goes wrong? Ask them about savings accounts or spare accounts or such instead and it might sound less like you want to get it in a fake name or whatever.