What is Bank Account Fraud?

Unlike your credit cards, your bank accounts usually contain most of your day-to-day finances and savings, and the majority of people have their wages paid directly into their checking accounts.  This means that any fraudulent activity on these bank accounts can be very serious, as you could be left with no money with which to pay bills or purchase your every day necessities, and you could even be left facing hefty bank charges if the thieves go over your account withdrawal limits and run up debts in your name.

Identity thieves can misuse existing bank accounts in a number of ways such as:
•    Stealing debit cards and PIN numbers – thieves can gain access to your PIN numbers by ‘shoulder surfing’ whilst you are at the checkout or ATM.  They will then either directly obtain your debit card by stealing your wallet or purse, or if they have a chance they can memorise the whole card number and PIN to use to pay for goods online or over the telephone.  They will then use this to empty your account of as much cash as possible or run up as many charges as possible on the card before they hit the limits.  Make sure you keep your debit cards in a safe place, never share the details with anyone and shield the keypad when you are putting in your PIN number whilst paying for goods or taking out cash.
•    Stealing Checkbooks – thieves can use your checkbooks to pay for goods and services, and it could be a few weeks before these charges show on your account.  Keep your checkbook in a safe place when you are not using it, and make sure you keep a record of all of the checks you have written and compare this to your statement every month to ensure there has been no suspicious activity.

5identitytheftprotection.com provides more information about protecting your identity from thieves.