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One nightmare I've had is logging into my online bank account and seeing that it has been wiped out by some thief. As this MSNBC article reports, it is possible. If someone steals your bank's checking account and routing number, the person can take money from your account. Banking regulators have issued check fraud warnings on the Qchex website. This website allows visitors to create checks that draw funds from nearly anyone's checking account. Due to this site's lack of identity verification, crooks have been using this site for fraudulent checks.

But if some thief does this, you shouldn't be at risk. The article stated:

In most states, consumers who complain about a bad demand draft within a reasonable amount of time are entitled to a refund from their bank. The liability for accepting a bad check falls to the account holder's bank, called the paying bank, because in the past it was deemed to be in the best position to detect fraud.

So as long as you check your accounts regularly, you should be okay.

Is online banking more risky? The article ended with the following note:

The irony of the demand draft system is that it may mean that simple, old-fashioned paper checks are ultimately more risky to use than an electronic payment.

If something like this happens to me, I only hope I can reach the bank's staff without any hassles. With physical branches, you can go there in person and speak with the managers if necessary. You can call online banks, but there's always the worry you won't be able to get past the automated answering service. I haven't seen any examples of this, but I can understand those who might worry about it.

Note, a follow-up MSNBC article reports on a fraud alert that the FDIC issued regarding Qchex being used for fradulent checks.