Bank fraud: New bank accounts, existing bank accounts and payment methods, such as debit cards, electronic fund transfers and automatic clearinghouse (ACH) payments, are a leading playground for identity thieves.
Financial identity theft is when one person uses another's personal data for financial benefit. This is the most common form of identity theft (including the credit card example described above). Financial identity theft can take multiple forms, including: Fraudsters may use your credit card information to buy things.
Many credit card companies and banks have customer protection plans in place to protect against identity theft or to recover funds from fraudulent purchases. Credit reporting companies and private insurers also offer fee-based identity theft protection plans, but their benefits have mixed reviews.
Identity theft usually begins when your personal data is exposed through hacking, phishing, data breaches, or other means. Next, a criminal makes use of your exposed information to do something illegal, such as opening an account in your name.
What they want are account numbers, passwords, Social Security numbers, and other confidential information that they can use to loot your checking account or run up bills on your credit cards. Identity thieves can take out loans or obtain credit cards and even driver's licenses in your name.
Information such as your name, address and Social Security number can then be used to open a bank account fraudulently.
Highlights: There are a number of ways identity thieves may obtain your personal information. Fraudsters may dig through mail or trash in search of credit card or bank statements. Unsecured web sites or public Wi-Fi may allow identity thieves to access your information electronically.
The Difference Between Routing Number and Account Numbers
With both of these pieces of information, someone can potentially use them to withdraw money, pay their own bills, purchase items online from vendors, or set up a new account using your funds—all from your checking account.
The goal of any bank scam is to get access to your bank account. Unfortunately (for scammers), they can't get access to your account without your help. Bank scams require that you share personal financial information with a scammer, install malware on your devices, or use unverified checks and other banking material.
Call or email the fraud department of the companies, banks or credit unions where accounts have been compromised. Explain that someone stole your identity and ask them to close or freeze the compromised account.
Monitor Your Credit Reports, Bank and Credit Accounts
One of the most effective ways to protect against identity theft is to monitor your credit reports and billing statements so you can spot and report unauthorized activity.
Here are the most common dangers of identity theft: Fraudsters can open new accounts, credit cards, and loans in your name. You can lose your health care benefits (i.e., medical identity theft). Hackers can “own” your email and other accounts (account takeovers).
The four types of identity theft include medical, criminal, financial and child identity theft. Medical identity theft occurs when individuals identify themselves as another to procure free medical care.
Identity theft begins when someone takes your personally identifiable information such as your name, Social Security Number, date of birth, your mother's maiden name, and your address to use it, without your knowledge or permission, for their personal financial gain.
Contact the major credit bureaus
Fraud alerts are free and require companies to verify your identity before opening any new accounts in your name or changing any existing accounts. Another option is to contact each of the credit bureaus to add a credit freeze.
Pulling your credit report is the most accurate and convenient way to find all of the accounts in your name. Your credit report will display every open account in your name, from bank accounts to credit cards and so much more.
The best way to find out if someone has opened an account in your name is to pull your own credit reports to check. Note that you'll need to pull your credit reports from all three bureaus — Experian, Equifax and TransUnion — to check for fraud since each report may have different information and reporting.