Karen Bennett, Bankrate.com
Vivian Thornton was quite shocked when he logged into his bank account and realised the unfamiliar debit fees for concert tickets totaling over $2,000. In fact, the heavy charges led her account to a negative balance, says Thornton, a small business owner, Charlotte, North Carolina.
The day this happened, in 2023, Thornton had only used his debit card once. To fill the gas tank, she told Bankrate. “I later went to deposit some checks online and noticed an unfamiliar bill. I’ve never bought a ticket through Ticketmaster, so it was a real shock.”
Thornton, who told her story in a Tiktok video, is a victim of identity theft and, among many other issues, could be eliminated by a scammer or a savings account. . Identity theft is one of the most common types of financial fraud reported to the Federal Trade Commission (FTC). In fact, the agency received over 1 million reports of identity theft in 2023.
The FTC was designed as Identity Theft Awareness Week from January 27-31, 2025, and could provide an opportunity for consumers to learn more about this type of crime and how to protect assets such as bank accounts. there is.
What is identity theft?
Identity theft occurs when someone accesses your information and uses it without your permission. Such personal and financial information includes name and address, social security number, bank account information and credit card details.
Whether a fraudster uses other people’s information to make fraudulent purchases, receive money or receive medical care, identity theft is usually done for some form of economic benefit. .
FTC’s Midwest Regional Assistant Director Joannie Wei said the first indication that a consumer has become a victim could be an unknown withdrawal from a bank account or an unknown claim from a debit or an unfamiliar fee. He says there is.
How identity theft occurs
Protecting personal information from criminals is particularly difficult.
– Your Wallet: While financial information is as common as digitally stolen, some criminals can try out the old-fashioned ways to grab a wallet to access credit cards, ATM cards and cash. can.
– Garbage: Discarded paper financial statements can be intercepted by trash can diving scammers.
—ATMS, Cash Registers, Gas Pumps: Installing small devices known as skimmers at these locations allows you to collect credit or debit card numbers along with pin codes entered by burglars.
—Public Wi-Fi: If you are using public Wi-Fi to access your financial account at a hotel, coffee shop, library, or other location, the information that scammers send via mobile phone, tablet, or laptop can be intercepted.
– Phishing: Scammers often reach out to people via email, claiming that it is from the bank, and request passwords and other information. This is called phishing, but a similar smishing practice occurs when contacts are made via text messages.
– Social Engineering: Bad stakeholders may try to establish trust to convince you to provide sensitive information such as bank account numbers and passwords.
How identity theft affects your bank account
Scammers may attempt to access information for the purposes of ejecting existing bank accounts or opening new accounts by name.
1.) Scarers can access and eject bank accounts.
Thieves can attempt to debit purchases online or in store by getting people’s wallets and bank account login information. They may also try to withdraw cash from their current or savings accounts.
In these circumstances, it can take a long time for consumers to collect stolen funds while banks conduct investigations. For example, it took about two weeks for the credit union to investigate and reverse the fraudulent fees after Thornton’s account was released by a scammer who purchased the concert ticket.
2.) Criminals can open a bank account in your name.
Scammers use other people’s information to open a bank account, write bad checks, avoid taxes, wash money, or store illegally acquired money. there is.
Accounts were opened using victim information, which could prevent the victim from opening a future bank account or obtaining credits.
Sometimes, authorities even claim that bank officials used customer information to open bank accounts without permission to meet internal sales quotas. Banks that paid massive fines in connection with such claims include Wells Fargo and the US Bank.
“When someone has your Social Security number and other identification information, when they open a bank account in your name, it’s a sign that they are using your information in other malicious ways. “They’re possible,” says FTC’s WEI. VE has filed a tax return or unemployment benefit in your name. ”
How to protect your bank account from identity theft
By following these simple steps, you can keep your hard-earned money in your bank account.
– Do not carry debit cards that you do not use regularly. ATMs and debit cards that you don’t use frequently can be safer at home than carrying them around in your wallet. (The same applies to credit cards and social security cards that you don’t use frequently.)
– Restricts debit card usage. If funds are taken from your bank account as a result of skimming, it may take longer for the bank to collect the money during the investigation. Conversely, credit cards often offer zero-risk fraud protection when reporting fees within 30 days.
-Using multifactor authentication: This involves entering a password as well as texting or emailing a unique code to enter every time you log on to your account . This adds a second layer of security by providing two forms of validation.
– Do not answer calls, texts or emails for bank account information. “The basic rule that prevents many identity theft and fraud is not to provide personal or financial information to anyone on requests you didn’t expect,” says the FTC WEI. This could be a surprise call, text, or email from the bank. “You can also see the bank’s name appearing on the caller ID, but it can still be a scam. She adds that if you want to check your account, do it independently without using unsolicited links you have received.
– Click on the link in the email from the bank. These emails are from scammers who try to lure you to their website to provide you with your confidential information.
Wei also recommends signing up for bank account alerts with fees over a certain amount. “If you receive an alert (about fees) you’re not aware of, it may be a sign of identity theft.”
In addition to alerts, some banks can set verbal passwords. This must be stated to do business in person or over the phone.
“It’s worth having a conversation with your bank and asking, ‘What can help protect my account?'” says Eva, CEO of the nonprofit identity theft resource center (ITRC). Velazquez says. “And take advantage of those things.”
What to do about fraudulent activities in your bank account?
If you think you’ve become a victim of identity theft, such as seeing strange debits or withdrawals from your bank account, it’s important to take action immediately. The important steps you should take are:
– Freeze your debit card: If your account is associated with a debit card, freeze the card to prevent further use. This can often be done using the bank’s mobile app. Otherwise, contact your bank to request a freeze.
– Report your activities to the bank: Contact your bank’s fraud department as soon as possible to minimize damage. They will likely start an investigation from the account and freeze transfers and withdrawals.
– Change login credentials: Create a new password and make sure multifactor authentication is set up. If you have security questions, creating a new set of them can also help keep scammers out of your account.
– Freeze your credit report: If you set up a security freeze at three major credit offices, this will prevent your creditor from accessing your credit file until you lift the freeze. This could stop scammers from applying for credits in your name.
– Check credit report: If someone is in your bank account, they may also have access to your credit card. Therefore, please monitor your credit report for signs of suspicious activity.
– FTC Report File: If you report identity theft to FTC, you will receive a recovery plan that will provide you with the next step, track your progress and fill your form and letters in advance.
ITRC’s Velazquez recommends that you log in to your bank account frequently to monitor transactions. “When you catch these things early, it’s much easier to improve these things. We encourage people to see them often.”
Conclusion
While someone illegally stealing money from a bank account is just one of many forms of identity theft, other similar crimes can be used to purchase a credit card or provide medical benefits using your information. Include scammers using your information to get it.
The best defense for consumers against these types of crime is to follow important rules regarding secure logins to their accounts, monitor their accounts and be vigilant for possible fraud. Responding quickly when suspected of fraud is important to minimize the damage that could have been done.
“When it comes to identity theft, people often feel embarrassed or embarrassed about things they don’t know,” says Velazquez of ITRC. “I encourage people to let it go and ask for help. The message to people is to reach out to the free and reliable resources available.”
©2025 Bankrate.com. Distributed by Tribune Content Agency, LLC.
Original issue: February 11, 2025, 2:40pm EST
