In a world where financial fraud and cyber hacking are so rampant, you may not realize the extent to which your bank account is at stake.
What can someone do with your bank account number? Do you have to keep your bank info safe, like you would your social security number and online logins?
Well, with a bank account number, a thief can transfer and withdraw money from your account, print fraudulent checks, get your tax return, and more.
There is a survey from the Federal Trade Commission (FTC) which states that there were over 33,000 bank fraud reports in just the first quarter of the year 2023!
Let’s delve into what a thief can do with your bank account number and how to protect yourself against theft.
Get to know your bank account number
In a 2018 report from World Bank, it was reported that 69% of adults have a bank account, and the numbers keep increasing. These numbers show how prevalent it is to educate consumers about keeping their bank accounts safe.
Before we find out what can be done with your bank account number, let’s quickly discuss what a bank account number is.
The bank you bank with holds many accounts from all their customers. Each account has its own number to differentiate from one account to another. This ID number is what we call a bank account number.
I also would like to mention routing numbers. A routing number is the bank’s identity number. Some of the types of thefts we’ll be mentioning can only be done if the thief has the bank’s routing number in addition to your bank account number. This is evident in that in order to perform direct deposits, pay bills, and make bank transfers, both the routing number and bank account numbers are needed.
Even if a scammer needs some more of your personal information in order to rob some of your funds, that type of info is easy for them to find. When they have your social security number, home address, your name, and the like, and of course your bank account and routing numbers, they can steal your money.
Unauthorized transactions people can perform with your bank account number
So, what can someone do with your money if they have your bank account number? Read on, we’re just getting to that.
Print fraudulent checks
Firstly, if a thief gets their hands on your bank account number, they can easily go and print checks, especially if they have your routing number as well. They may even manage to get printed checks from your bank sent to them.
They can then cash the checks to get the money out of your account. They can also use the checks to pay for purchases or services. Once the thief accesses the money in your account, they can deposit the money to their account by visiting a bank branch, an ATM, or do it quickly through an app on their device.
Another misdeed scammers can do with fraudulent checks is to tell a victim to deposit a fake check to the victims own bank account and send back part of the money to the scammer. When the check bounces, which will occur in the case of a fraudulent check, the total sum the check was made out to will be withdrawn from the victim’s bank account and go to the owner of the fraudulent check. Nasty indeed.
The scammer can even take it a step further. They may ask the victim to open a joint account with the scammer which they can use to process these checks. If the victim falls for it, they will open a real bank account. The scammer can then use this bank account for more fraudulent activity and it will be linked to the victims information.
Sign that can signify fraudulent checks
If you spot these signs on a check, take extra care and verify extremely well whether the check you’re holding is authentic. It may be a red flag.
- If the amount the check is made out for is not the same in the two spots on the check where the amount is written
- If the banks address is incorrect and different from the banks official address
- If there is no official logo from the bank or financial institution on the check, or the logo is light.
ACH transfers
Another thing someone can do if they have your bank account number is make Automated Clearing House (ACH) transfers from your bank account. ACH is a network that processes transactions between banks. There are approximately 10k banking institutions that use ACH transfers.
Should someone claim your bank account and routing numbers, they can easily get rid of the money in your account via these electronic transfers and get it over to their bank.
Thieves can also use ACH transfers to make online purchases with stores that offer it as a payment option. They can even use your banking information to set up subscriptions or utilities and pay via ACH transfers from your account.
Online shopping
There are also ways a thief can make purchases online and pay for them through your bank account. This is easy in instances where all that the vendor requires for the purchase is a bank account number.
Scammers can also set up a fake website just to trick you into making a purchase, which gives them access to your banking information. They set up an online shopping site with deals that look good. Ultimately, they only offer irreversible payment options, such as Zelle, ACH transfers, and Venmo. So you fall for the deals and place an order. And after that, the product you order doesn’t arrive and you never hear from this company again. Be very careful when you shop online. Check that the domain name is legit, not a knockoff of a popular store. Scout out the site and make sure that you can find information about the store on its site.
This type of scam gets the money you pay over to the scammers and also provides them with your banking information.
Launder money
Someone who copies your bank account number is likely to be a bit of a pro at crime and theft. Such a person can use your bank account to launder money they received illegally from whatever other money-earning crime they are busy at. This is straightforward to spot because you can look out for foreign deposits to your bank account.
Open new bank accounts
Alas, once a thief or scammer has your bank account number, they can open credit cards in your name. It’s as easy for them to open new accounts if they have all your information. They do it in the name of adding credit products to your profile to expand your banking.
Identity theft
In addition to credit cards, once a thief has your bank account number, they can get into your account and steal your identity using more information they find. They can even claim your tax refunds.
The scammer can get your personally identifiable information (PII) by conducting phishing attacks, through data breaches, and other scams.
How to spot identity theft
Here are some red flags you may notice if you are a victim of identity theft:
- If there are ever new credit cards under your name which you did not open
- Transactions on your statements you do not recognize
- Credit lines, loans, or accounts on your credit report you did not open
- A sudden, noticeable drop in your credit score
- If you start getting notices from lenders or banks for claims you do not recognize or have no relation to, in the form of mail, emails, calls, etc.
- Bills delivered to you for utilities, services, etc., you don’t use
- If you start getting packages mailed to you of things you never ordered
Identity theft is particularly scary, for one reason being that if the scammer gets arrested, they can pretend to be you. There were over 1.43 million reports for identity theft in 2021, that went through the Federal Trade Commission.
Due to the danger, and the staggering numbers, take the effort to care for your identity to protect it from fraud.
How to protect your bank account if you are a victim
We’ve visited various ways in which your bank account can be a target for theft. Following are some ways you can protect yourself from theft if you realize your bank account number has been stolen.
Your bank account number can get stolen through data breaches, phishing scams, AI powered scams, through ways as simple as phone scams, and through so many more dark activities.
So take some of these steps to protect yourself.
Always monitor your account
It is so super important to always monitor your bank account. What you catch early on can be so much easier to reverse than after the (bad) deeds are done.
Therefore, make sure you routinely check your bank transactions carefully. With online banking and mobile apps, your transactions are very accessible to be monitored. If you see any activity that seems suspicious, report it to your bank right away.
You can set up notifications to update you if there is any suspicious activity happening in your account. You may have options to be notified by text or email. So if there is a pending purchase transaction for a large amount or a lot of cash being withdrawn from your account, you will get an alert. If any of this is being performed by someone other than you, you might be able to stop it in its tracks.
If your bank account has been completely emptied, or it has been closed, then a scammer may have tampered with your account. Either to just empty your account of funds, or to then proceed to close your account after it’s been emptied.
Review your bank statements
You should also review your bank statements for transactions you don’t recognize. Notify your bank if you see any interesting transactions.
Notifying your bank of suspicious transactions
If you see an ACH transaction that is unfamiliar to you, get in touch with your bank or credit union within 60 days so that you don’t have to pay those funds (even if it’s past 60 days, report the fraud, for all purposes).
Hackers can make multiple transactions of less money each rather than a few transactions of larger amounts. Look out for those.
It would be wise to place additional protections against fraud in such a case. The bank representative may decide to freeze your account or even close it and open a new one for you with new account and routing numbers, while they investigate the case. And if they think it’s smart for you to close your account and open a new one then the bank will often help you transfer over any auto pays or direct deposits that were connected to your previous, compromised account.
Treat your bank info with care
Let’s not forget the basic step for protection is treating your bank information with care. Be wary of who you repeat your information to. Don’t trust anyone and everyone. Of course, if someone asks you for your info outright, don’t just give it over. Be extremely cautious.
Keep statements in a safe place
Back in the day, when bank statements hadn’t yet gone electronic, many homes and offices housed shredders. Those were used to shred sheets of sensitive nature, including any paper with your bank information.
Whether you still have a shredder at home or not, make sure you store your bank statements safely. Shred them up once you no longer need them, or simply file it away in a secure filing box.
Go paperless
A good solution for protecting your statements is to request to receive electronic statements versus mail. However, in that case as well, be sure to keep your online bank login credentials secure.
Update your passwords
If there was a breach in your bank account, you need to protect your online banking. A scammer can get your online banking information through malware, cyberattacks, and phishing attacks. They can even buy your credentials if there was a data breach. And once they get into your online account, they can access everything about your account.
There was a data breach at a Flagstar Bank where the banking information of over 1.5 million clients was stolen.
If you are a victim of fraud, change your online banking password. Ensure that it is a strong password. You can also add additional security check steps to identify the user, such as receiving a code via text, email or a phone call, or entering personal information, in order to be allowed into your bank account online. Some login pages ask you security questions that you can set up in advance with answers you choose.
In addition, it would be smart to change the passwords on your other online accounts just in case those were hacked as well.
It’s a good idea, say the professionals, to keep changing your login credentials for your online accounts. Try to change it up every three months.
Safeguard your credit
After you finish checking your bank transactions and statements, check your credit reports for fraud. Look out for unfamiliar accounts opened in your name, or credit inquiries that were not initiated by you or by a company you authorized. If there is something you don’t recognize, report it to the credit bureaus.
Freeze your credit
You can freeze your credit file for free with all three credit bureaus; Experian, Transunion, and Equifax, in order to lock it against any thieves who try to open credit lines in your name. A credit freeze will not allow anyone to open accounts in your name. In order to open a bank account, the bank doesn’t check your credit report for credit but they do check it for identification. They will not allow a new bank account if there is a freeze on your report.
Place a fraud alert
You can take another step and ask the credit bureaus to place a fraud alert on your credit reports. The fraud alert signifies to lenders that you may be a victim of identity theft and demands that they take extra precautions when you prove your identity for new credit lines.
Sign up for credit monitoring
You can sign up for a credit monitoring service to help avoid fraud. These security tools monitor your credit against fraud and scammers.
Report the fraud
Report the fraud here with the Federal Trade Commission. This will aid the Federal Trade Commission in building up their criminal cases. Also report the fraud for a greater cause by filing a fraud report at IdentityTheft.gov. They are the ones who try to combat fraud and it is a help if you report the case so that they can add it to their database.
You can also report the fraud to local security forces. It may help you dispute fraud transactions if you have such an official report.
Note, that if you report a fraud within 2 days of the occurrence, your liability will be capped to $50 in charges. You also have 60 days from when you receive your account statement to dispute any unauthorized transaction without being liable for it.
Once you dispute a charge, the bank has up to 10 business days to investigate the dispute. If their findings show that you are a victim then they must act to reverse the damage within 1 business day. The bank must respond to you with these findings within 3 business days.
You have 60 days from your statement to report a fraudulent ACH transaction.
It’s important to mention that you may get extra protection from Federal law if the fraudulent transaction was done via electronics transfers, online, or with a banking debit card.
If you choose, you can also want to file a report with the FBI’s Internet Crime Complaint Center (IC3).
Notify companies that have your banking information
If your bank account has been attacked, make sure you get in touch with all companies that have your banking information. You should let them know that your account has been attacked and that they should be on the lookout for suspicious activity, or contact you in case something is impacted by the fraud.
Companies involved may include utility providers, online stores, payment apps; PayPal, Google Pay, Apple Pay, etc.
How to protect your routing number
As we mentioned earlier, many of the above situations, such as withdrawing money from your bank account, can be actualized only if the user has both your bank account number and your bank routing number.
So let’s discuss some ways to protect your routing number from being copied to further protect your bank account.
Just so you know, no one can access your bank account funds with the routing number only. All customers of the bank use the same routing number.
Watch out for phishing scams
Phishing scams are typical scams when someone tries to steal personal information from you. They may do so either by calling your phone or sending an email or text to you. They try to get all of those tactics to seem as genuine as possible so that you fall for it. So they might make it seem as if the call or email is coming from your bank or financial institution. They may ask for some personal information or direct you to a URL.
So firstly, banks will never call you up and ask for personal information. If you get such a call, don’t say anything and end the call.
And secondly, if it’s an email you get, if you haven’t opened the email and it seems suspicious, delete it straight up. If you did open the email, do not click any links from the email. What scammers usually do is place links and when you click on them, it takes you to a website. The system tracks the variables of the entire process, saving your personal information, such as your bank login or account number.
Make sure not to click on any link that you think may be suspicious. If you are unsure whether a link is legit or not, you can hover your mouse over it, without clicking. The URL address will pop up and you can usually tell from there if it’s legit or not.
At the same time, do not download any attachments from a suspicious looking email or text.
Rather, reach out directly to your bank to ask if there is anything you need to take care of. This way you can check if any of the messages you got are authentic. Besides, banks do not take the route of emails or phone calls to ask you for your banking details, so the likelihood of a suspicious form of contact to be a scam is high.
Do not share your banking information
Don’t share your bank account information with someone you don’t absolutely trust. While this may seem obvious, it’s not just verbally repeating your bank account numbers to a stranger. Beware of any form in which your info can be transmitted. For instance, paper checks host both your bank account and routing numbers. If you don’t have a more secured option to use, ensure that your checks are carefully stowed. And when you mail a check, verify that the account numbers are not legible through the envelope.
Who you can share your banking information with
There are cases in which it should be safe to share your bank account information. For example, if you use a tax management service then you can share your info with your case manager.
Also with utility companies that you pay with automatic payments. Payment transfer services, such as PayPal, also need to have your bank account information.
You can share your information with credit card companies or loan companies so that they can automatically bill your account.
You can also share it, if needed, with your employer, and friends and family you absolutely trust.
Do not use your bank information on unprotected websites
When you browse the web, check if the site you’re using is secured or not. You can simply look at the URL bar on top and check if there’s an icon of a lock. If there is then the site is protected. You can also check the URL to see if it begins with https. That tells you it’s secured.
If you are using unprotected websites, do not enter your bank account information. Or any personal information, for that matter.
Do not shop online using your bank account information
Don’t shop online by checking out using your bank info or debit card. Rather, use a credit card which offers more fraud protection.
You can also check out using other options that don’t need you to enter your bank details. Options include money transfer plugins, prepaid cards, or gift cards.
Set strong login credentials
In an astonishing review by ERMProtect, they note that a weak password made up of only numbers and letters, seven digits long, can be cracked by hackers within one day! While a password that includes characters and capital letters can take hackers up to seven years to crack!
The lesson here is that you should make sure to use strong passwords for any account login. Extra points for longer passwords. Hackers are smartly cruel and they have tools to figure out many, many password combinations and possible combinations.
Use two- factor identification for online account logins to give a hacker that extra obstacle to get into your account.
More ways hackers can steal your bank account numbers
There are many ways hackers can steal your bank account information. Here are some we haven’t talked too much about yet.
Cyber attacks
A thief can break their way into your computer or device to search for bank account information or personal info. Not physically through your screen, through cyber.
Data breaches
A data breach is when someone who is unauthorized, accesses confidential information. In this case, a hacker can break into the bank system or financial institutions systems to steal customers’ banking information.
In 2019, there was a huge data breach in Capital One’s data. Many credit card numbers and banking information was leaked.
Hack retailers
Hackers can also break into online retailers and payment processing companies to get bank account information that is stored in their systems.
Malicious software
Hackers can place malicious software on your device, including viruses, worms, ransomware, spyware, etc. This helps them make their way into your device to access all info stored in it.
On-paper theft
Someone may go through your mail, even look through your outdoor garbage can, looking for official documents or statements. They may copy your bank account information off a bank statement and walk off with it.
Skimming and skimming devices
There is a small device thieves use on ATM machines to steal your credit card information. They attach these very small devices to ATM machines that pick up your credit card information when you insert your card to make an ATM transaction.
Trick potential employees
Some criminals can be sly enough to place you as a middleman to launder goods or money, without you even realizing. Such criminals may target students and unemployed people with fake job opportunities. They conduct job interviews where they ask for the employees’ banking details, and they tell the prospective employee it’s so that they can “receive payments”. But in truth, all they want out of them is their banking information, for the sake of scamming and laundering money.
On the “job”, the criminal may tell the new employee to ship goods to other people, the employee not being aware that the goods are illegal.
The employer may also give the employee a check to cash, saying that the extra chunk of funds from the check should be sent to another account. And there you have it, the criminal fooling an innocent victim into laundering money for them.
Don’t fall for every job opportunity that comes your way.
Tax fraud
We briefly mentioned earlier that thieves can claim your tax refunds. They do this once they have your personal information and file a fraudulent tax return. However, they give their own banking information for the tax returns so that they get the full returns.
The scammer can also file a tax return in your name if they have some of your tax details. After you get your tax refunds, the scammer gets in touch with you, claiming they’re the IRS. They say there was an error committed on your tax returns and that you must return the money. Then they give you details of an account to where you should send the money. And that’s the last you hear of them.
So if you get communications from the IRS that you don’t feel comfortable with, it may not be legit, so check it out. If they claim that you already filed tax returns and you didn’t, this may identify tax fraud. If you notice an IRS.gov account that is unfamiliar to you, in your name, or you get documents you don’t recognize, then you may be a victim of tax fraud.
You’re best off using the IRS app to follow the status of returns that you file, or your online account to check your returns and payments.
Beware that tax fraud can be committed by a tax professional you trust who turns out to be a crook.
Conclusion
Thanks to the rise in fraudulent activity, keeping your bank account information safe is important. Implement the ideas we discussed in this post and remember, if you realize that you are a victim, act asap.
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