Checking Account Safety: How to Prevent Fraud

by. Laura

Like many Americans, you probably rely on your checking account for many of your day-to-day purchases. All of your transactions, whether online or in person, can leave you vulnerable to fraud or theft if you’re not careful. It can happen to anyone, and it’s impossible to prevent it 100% of the time, but it’s way less likely to happen to you if you follow some simple precautions. We asked banking experts from around the country to weigh in, and got some excellent responses. Here are some easy tips to protect your account from theft and fraud.

Don’t sign your debit card

Greg Meyer, Community Relations Manager at Meriwest Credit Union, says, “don’t sign the back of your debit card. Write “Ask for ID” in big block letters with a permanent marker. If you sign the back of your card, you are just giving a thief an example of your signature.” The downside of this strategy is you’ll have to bring your ID with you for major purchases, but most people do that anyway, and it’s a small price to pay for added peace of mind.

Destroy old documents

If you bank online, you probably already receive e-statements, which cuts down on the amount of mail your bank sends you. For any bank documents you do get in the mail, however, be sure to shred the ones you don’t need to keep for your records. Jessica Williams, Marketing Coordinator for Consolidated Credit Counseling Services, Inc., says, “Shredding this paper work will stop the chances of someone successfully stealing your information through old statements that were tossed away in the trash.” She also recommends cutting up old debit cards at least 8 – 12 times before throwing them away. “Make sure the card number and name on card are not legible,” she adds.

Bank online

Online banking is super convenient. You can check your account balance, transfer money and pay bills without ever leaving your computer. In many ways, online bill pay is more secure than sending a check in the mail, because it doesn’t send your account number to the recipient. However, you still need to take precautions. The rest of the tips in this series will help you use online banking safely.

continue reading »