Banking identity theft occurs when a thief gains access to an individual’s banking account by obtaining their personal information, including passwords and account numbers. In fact, banking identity theft is one of consumers’ biggest fears when it comes to online banking and purchasing. Roughly 150 million U.S. consumers avoid making purchases with their debt accounts or banking online. Banks are currently working on strengthening their online security by using multilayered strategies. With certain precautions in place, consumers can safely partake in online activities related to their bank accounts without worrying about the risks of banking identity theft.
How it Works
Identity thieves obtain individuals’ personal banking information by:
- Obtaining information from businesses and other institutions by stealing records, bribing employees, and hacking into computers
- Dumpster diving for personal information
- Obtaining credit scores falsely by pretending to be an employer
- Stealing wallets and purses containing debit cards and identification cards
- Redirecting mail so that individuals do not receive their financial statements
- Stealing personal information from individuals’ homes
- Obtaining information from individuals by posing as a legitimate business or bank
- Phishing by sending out fraudulent emails
Identity Theft Protection Services
Individuals also have the option of investing in an identity theft protection service, which will safeguard against banking identity theft along with other forms for them. This saves individuals time and worry. Most of the identity theft protection services, such as IdentityGuard, TrustedID and LifeLock, offer automatic fraud alerts, free credit scores, junk mail deletion, identity recovery assistance, lost wallet/purse assistance, and more.
Summary
Online banking identity theft is a serious and damaging crime. Victims of banking identity theft are unable to recover their finances if they discover it too late, and oftentimes end up losing thousands of dollars. It is important for all individuals to be aware of banking identity theft, and take all the necessary precautions available to protect against it, including looking into identity theft protection services. If they suspect identity theft, it should be reported immediately to all banks and local authorities in order to minimize damages.