How To Avoid Checking Account Fraud?

Posted on June 3, 2011 | Leave a Comment

One of the largest areas of identity theft is checking account fraud. This is a very easy, mostly hands off form of theft that is very attractive to many fraudsters.

In a nutshell, identity thieves can – with very little effort – gain access to your checking account details and that means they can drain the money from your account.

Fortunately, there are many simple steps you can take to protect yourself from this type of fraud.

In no particular order, here are several things you can do to protect your checking account and your identity.

Never leave anything behind at the checkout counter in a store. More and more stores are scanning and returning your checks to you. Be sure to put it in a safe place immediately. Do not put it in a shopping bag or throw it in the trash as you are walking out the store. A thief could be watching you and arrange to grab it if it is not secured.
Never write or have imprinted your social security number on any check. If your check gets stolen, not only do they have access to your checking account but now they have a gateway to access for your entire identity. (Sadly, the IRS still requests that you write your SSN on your check when making a payment to them.)
Only write checks to known or trusted entities. Sending a check to your power company is generally safe once it reaches the hands of the power company but what about that person selling magazines door to door? It might be better to pass on that deal unless it is someone from the neighborhood that you know and trust.
Consider electronic payments instead of checks. When you make electronic payments, there is no check and no paper trail that can be accessed. It is just a secure transaction from your computer to your bank’s computer.
Protect your mail – both outgoing and incoming. Check thieves often target mailboxes – especially those that have the flag up indicating that there is mail available to pick up. A few minutes in a neighborhood picking up mail can give the thief many accounts to raid.
Be aware of what you throw in the garbage. Thieves do go through garbage looking for bits and pieces of usable information. Bank statements and checks are two of the big things they will look for.
Keep your checkbook in a safe place. That means that it is not sitting in your car where it can be stolen. And that means that it is in a non-obvious place at home. (And if you are ever robbed, be sure to verify that your checkbook is still in your possession. It is not something you might think to check on otherwise until you need to write a check again and by then you could be cleaned out.)
Keep a low balance in your checking account. With today’s linked accounts, you can keep all your money in a savings or money market account and just transfer enough into your checking account to cover specific bills as you pay them. That way, if a thief ever does get ahold of your checking account details, there will be very little that can be stolen.