What is Banking Identity Theft?
According to a recent
study in 2007, nearly 150 million consumers in the United States avoid online
banking because of the immense fear of identity theft. The study showed that the bank industry could
possibly improve revenue by as much $8.3 billion per year if institutions were
able to establish consumer confidence in online transactions. Surveys in the study also showed that well
over 88 million online banking consumers in the U.S. would either change banks
or tremendously reduce usage if the individual institution they used was
compromised by a security breach.
Due to consumer fear and
demand, several banking institutions are working diligently to strengthen their
online security. Some have implemented
multilayered, proactive strategies that rely on in-house expertise and proven
market solutions. This combination of
continuous education, risk management, and web technology teaches banking consumers
how to identify signs of identity theft as well as the steps that should be
taken to protect their assets.
One of the most popular
attempts at banking identity theft came at the expense of Chase Bank, a rather
prominent financial institution.
The scam worked via email, warning recipients that foreign internet
sources attempted to access their bank account.
The fraudulent email then instructed the recipient to rectify the
problem by clicking on a link that redirects them to a phony portal
masquerading as the Chase Bank website.
The thieves attempt identity theft by trying to convince a consumer to
enter their personal information onto the website.
Protect yourself From
Banking Identity Theft
While identity theft can
prove to be a financial disaster, there are a few things that can be done to
protect your banking information:
• Sign the back of your debit card as
soon as it arrives.
• Keep track of all receipts from debit
purchases and withdrawals from an ATM machine; these recipients should never
be disposed in a public trash container.
• Keep a close eye on your debit card
during a transaction. Also be sure to
get the card back
immediately following a swipe.
• Never keep ATM PIN numbers or
passwords in your wallet, purse or personal organizer. Your best bet would be to
memorize the number.
• Immediately report any checks or ATM
debit cards that have been lost or stolen.
You should also
review any new checks to ensure that none were thieved during transit.
• Frequently monitor your accounts for
any unauthorized use. This ability is
one perk that comes along
with online banking as it makes the process very simple.
• Always
pay close attention to the cycles of your bank account statements. If you are not receiving statements regularly,
take the appropriate action and contact the customer
service station of your
institution.
• Keep
an eye on your physical mail. Thieves
are quite bold these days and will stoop to any level to make you the next
victim of identity theft.
• Guard
your Social Security number. This number
should never be listed on your personal or business checks unless it is
absolutely necessary. In most cases,
other types of identifiers are sufficient.
If you
suspect that your bank account has already been compromised, the best advice
would be to immediately contact the local authorities and your institution to
inform them of the ordeal.
