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Checking Account Fraud

Checking account fraud numbers are not necessarily reported by banking institutions. The point is to realize that the same conveniences that make it easy to pay by way of checking account checks over the phone and on the Internet can put your account at risk for fraud. It is likely that checking account fraud occurs as often as other types of fraud.

Largely, checking account fraud is preventable if you start living life without the hallmark of a checking account -- checks. Checking account fraud is easily initiated by just using all of the information that is encoded on your check to initiate payments from your checking account. It not only often will contain your name, but also perhaps your address and even phone number.

In addition to that basic checking account information, if you write from your checking account often enough, you may even forget that your bank and your personal account number are printed. This is where fraud can originate. You may be cognizant that you can print your own checks at home. Checking account fraud may also occur if a criminal can create a convincing identification to make purchases in person. People may even use their own closed or inactive accounts to commit fraud.

This type of activity involves ordering checking books for closed accounts. Then, they pay for goods in person with these useless pieces of paper. By the time the merchant realizes it, they are at a loss, and the criminal has goods in hand.

While this is convenient, it is not the stopping point for checking account fraud. It is only one of a few ways that a criminal can commit fraud. They could risk printing out and trying to use your checking information in person. They could just initiate electronic payments and fund transfers away from your bank to other parties.

Deadening the Blow

The truth is that there are a few ways to limit the possibility of becoming a victim to checking account fraud. For one, watch your balances carefully. Be aware of where you are spending your money and how much you are spending. This vigilance can help you to stop fraud quickly once it has started.

In addition, you may want to nix carrying around any identifying information about your bank with you wherever you go. Instead, if you are into using cash, use cash. If you have trouble keeping track of receipts, and need a built in paper trail, consider even using a credit card for purchases. Those can be tracked more readily.

Otherwise, also consider that you can purchase money orders to pay with cash, without exposing all of your information so readily. Checking account fraud can be prevented if you keep a close watch on what you put through the mail, or receive in the mail. It may be best to not send your information through the mail.

Security Features

If you need to have checks, make sure that your bank or credit union offers security features on your checks. These may include a watermark or other marks that help merchants and other banks verify a real check from a fake. Along the same lines, make sure that you do your part to prevent problems.

It may be nice to have a physical paper trail for you. Though, if you like having physical statements, beware. Instead of filing them away in a nice big, open file out on a table, consider purchasing a safe. Buy a safe and bolt it into the ground in a well-hidden place, such as the closet. This will help to prevent your dear information being stolen if you are the victim of a burglary.

It is best, though, to shred the activity information that you receive from your bank every month. Otherwise, you may find yourself in a problematic situation. While many do not like banking online for fear of being hacked, at least electronic statements will not list out the full identifying information on your monthly statements. This will help to protect you.

Also make sure that if you are feeling particularly vulnerable, do two more actions to ensure your security. Be sure to use ball point pens. Their ink is not as readily changed as with felt tip pens or markers, for instance. Also, make sure that you mail your bills directly from the post office to avoid exposing your mail to possible criminals.

Checking account fraud is a threat to all of us. It is best to know where you may be vulnerable to help prevent possible unauthorized access to your hard earned money. You may change the way that you pay, where you pay from, and how you store your statements. You may even opt to shred or stop receiving paper statements altogether.