It’s a scary thought that someone might pretend to be you online for financial gain. Unfortunately, in the U.S., cases of identity theft are rising considerably. It helps to be prepared and protect your identity.
According to the Federal Trade Commission, the organization received nearly 1.4 million identity theft reports in 2020, up from 650,523 in 2019. That’s an increase of 113%.
Since your bank is where you probably manage most of your finances, monitoring your bank accounts for identity theft is especially important. According to the Insurance Information Institute, in 2018, the banking industry had the highest average annual cost of cybercrime, at $18.4 million, a $1.7 million year-over-year increase.
Reputable banks and credit unions like Arizona Central Credit Union provide fraud protection and cybersecurity tools to protect your personal information. It’s also helpful to know how identity theft happens, how to prevent it and the warning signs to look out for.
How Identity Theft Happens
Identity theft happens when an unauthorized person gets access to your bank accounts or personal information and uses it for their gain. With your bank account login, an identity thief can:
- Transfer funds to another account
- Steal your account information to make online payments and purchases
- Use your account information in shady business dealings
If someone uses your bank account information to make unauthorized transactions, you have limited protection under the Electronic Fund Transfer Act (EFTA). You have 60 days to report wrongful transactions to your financial institution to start an investigation. If you wait, the bank or credit union isn’t required to conduct an investigation, which could make you liable for fraudulent charges.
That’s why it’s important to monitor your bank accounts for fraud proactively. We recommend checking your online bank statement weekly or daily if possible, so you can notice any fraudulent charges earlier. That way, you can report the fraud to your bank or credit union, freeze your account and start an investigation.
How To Prevent Online Identity Theft
You can help prevent identity theft by taking steps to keep your account secure. We recommend doing the following:
Keep Your Personal Information Confidential
Avoid sharing personal information over the internet, phone or email. Keep a low profile in online public spaces. For example, if you share lots of personal information on your social media accounts, you could inadvertently reveal answers to security questions for banks and other logins.
Don’t Reply to Unsolicited Texts, Calls and Emails
Suppose you get a phone call or message from your bank asking you to provide your personal information, don’t. Call your bank to let them know about the message and make sure they’re the ones who sent it. It’s likely the message may have come from a scammer.
Use Strong Passwords
Use a unique password for every website login. Ideally, the password will have a mix of uppercase and lowercase letters, numbers and special characters. Avoid autosaving your passwords in case someone gets a hold of your device. You can use a password manager to keep track of your passwords.
Add Multi-Factor Authentication
Multi-factor authentication requires two or more credentials to log in to your account. For example, in addition to submitting a password, you might be asked to enter a code sent to you via text. This extra layer of security can protect you.
Update Software
If your software and apps prompt you to update them, do so. This ensures your apps and software have the strongest security measure updates. You can also install anti-virus software on your computer for more protection.
Beware of Phish-y Emails
If you receive a suspicious email, avoid opening it and any attachments. Cyberthieves may send viruses through email to compromise your computer. Also, don’t click on links from suspicious emails. They may take you to an unsafe “spoof” lookalike site where a fraudster can steal any information you put in, like your bank login information.
Keep Your Devices Secure
Require a passcode or, better yet, a fingerprint to open a smartphone or other device. That will help protect you if your device is lost or stolen.
Don’t Bank on Public Wi-Fi
Sometimes scammers set up free public Wi-Fi networks to steal personal information when you use those networks. It’s best to avoid doing anything that uses your sensitive information online in public spaces.
Turn off Bluetooth
Similar to public Wi-Fi, Bluetooth use is another connected feature thieves exploit. “Bluejacking” or “bluehacking” is when a hacker sends messages to Bluetooth-enabled devices. These messages could ask you for sensitive information. Even worse, “bluesnarfing” is a technique hackers use to hack into your Bluetooth-capable device, from smartphones to laptops. You can avoid being a bluesnarfing victim by turning off your device’s Bluetooth feature and mobile discovery mode on your smartphone.
Never Shop on Unsafe Sites
On any website where you’re inputting your bank account information, look for “https://” before the website. This indicates a website is secure and protects your financial information through encryption. If your browser doesn’t have this or says “Not Secure” before the website, do not input your financial information.
If you suspect your bank or credit union account has been compromised, alert your provider as soon as possible. That can prevent further damage.
Types Of Identity Theft And Warning Signs
There are several types of identity theft that relate to an online banking environment and your finances. Be vigilant. Look out for warning signs so you can take action quickly and alert your bank or credit union if you see something suspicious. It may be the result of one of these types of fraud.
Account Takeover Fraud
Account takeover fraud occurs when someone logs into your account and uses it without your permission or knowledge. With access to your account, a fraudster could transfer money, gain access to additional accounts or use your account information to make purchases. They could also change your password and lock your account access.
Debit and Credit Card Fraud
If someone gets a hold of your debit card or credit card information, either by having the physical card or your numerical details, they could use that to make fraudulent purchases. Sometimes all someone needs is a card number and expiration date to make online purchases. If you’ve saved this information on a stolen device, a fraudster could shop online with it.
Online Shopping Fraud
Some hackers will get into a website account and use your saved card information to shop online. This can happen when you’re using your account over a public Wi-Fi network, which is another way fraudsters steal banking and personal information.
If you’re having trouble accessing your account with your regular password, or you notice suspicious transactions, call your bank or credit union. The FTC recommends to:
- Track bills and when they’re due. If you’re not receiving a statement when you’re supposed to be, someone may have changed your billing address.
- Review bills and look out for any charges you didn’t make.
- Monitor your bank account statements and watch for withdrawals you didn’t make.
- Regularly review your credit reports. If you see new accounts that you didn’t open, that may be a sign of identity theft. You can get a free credit report at AnnualCreditReport.com or if you’re an ACCU member, use our SavvyMoney tool for your free comprehensive credit report.
Some financial institutions offer proactive account monitoring. If that’s an option, sign up, so you’ll be contacted whenever suspicious charges are attempted.
Get Extra Help With Identity Monitoring Services
Beyond what you can watch out for on your own, there are also monitoring services available. Check with your bank or credit union to see what they offer.
You may be interested in identity monitoring services that tell you when your information shows up in a change of address requests, arrest and court records, orders for utilities and other services and requests to cash a check. There’s also identity theft insurance available if you want extra protection.
Arizona Central Credit Union cares about your security and works to protect your identity. Learn about identity protection on checking services from Arizona Central Credit Union. Contact us if you have questions or would like to open a banking account.
