The frequency of bank fraud is at an all time high. Even with security measures in place, it is actually quite easy for someone to steal bank card information and wipe out accounts. There are some obvious ways to protect accounts, but preparation and education offer the best defense.
Spotting Fraudulent Charges
Check bank accounts on-line every day. Most banks allow this at no charge. If any suspicious activity is spotted, report it immediately. If fraud has been committed, cancel existing debit or ATM cards right away and order new ones. Keep in mind that most bank debit cards can be used as credit cards and even though the money comes out of a checking account, thieves don't need to know the PIN to use the card.
Protect personal information. Don't hand a card to anyone that can walk away with it to complete a transaction. They could record the information from the card without notice. Don't use cards at gas stations. The rate of card numbers being stolen at pay-at-the-pump stations is high. That's because thieves can easily attach "skimmers" to the pumps and steal card information without the station ever knowing. If the use a credit card is preferred to pay for gas, get a dedicated card for that purpose and keep a low balance available on it. Most credit card issuers will only hold the account holder responsible for up to $50 in charges if the card is reported lost or stolen.
Call or visit banks to review their policy about fraud. Not all banks handle this the same way. Some will put the money back into accounts within 48 hours while others may wait ten business days or more while the claim is investigated. If fraud occurs, an affidavit must be signed claiming the amount of the fraudulent charges. Be sure to also claim any and all charges that may have been incurred due to overdrafts caused by the illegal removal of funds from the account.
Bank Fraud Is A Crime
Most banks will require that a police report be filed. This should be done immediately and in the jurisdiction of the cardholder, as it may not be the same as the location where the theft took place. Thieves often use hijacked card numbers hundreds or even thousands of miles away. It won't hurt to contact the merchant where the fraudulent charges were made as they may be able to help police identify the thieves. Most stores have video cameras to aide in this purpose. If asked to prosecute, by all means say "yes." This may help prevent the same type of fraud from happening to hundreds of other people.
Be Prepared
Because it can take time to recover stolen funds, plan to have access to other funds from another account until things are sorted out. Bank fraud is scary and it is normal to feel victimized and violated. Be patient and things will get back to normal.
