5 Ways To Protect Your Bank Accounts

Recently a younger family member mentioned that he had just gotten a new debit card for his checking account because someone had gotten into his account. He said he wasn’t sure how it happened, but someone got access to his checking account information and racked up a number of charges. This was the second time this had happened to him in less than a year. And he’s not alone. Fraud attempting to take advantage of your banking accounts is bigger than it has ever been. Consider working with a financial advisor to create a financial plan that involves security measures.

The Need for Banking Security

As it turns out, illegal access to bank accounts is one of the fastest-growing financial crimes today. Thieves are constantly trying to get access to your bank accounts and they tend to make large or multiple purchases with your information. This can cost you thousands of dollars if you aren’t properly prepared, severely damaging your budget.

Unfortunately, my relative is still uncertain how someone was able to gain access to his account not once, but twice. His situation got me thinking of ways one can protect his or her bank account from scams and illegal activity. Here is a list of five ways to protect your accounts from thieves.

1. Check Your Accounts Regularly

Keeping an eye on your account will help you know when something is wrong. Even accounts that you may not use very frequently must be checked on a regular basis. Balance your checking account each month to make sure all the purchases being debited from your account are actual purchases you made. If something does not seem right, contact your bank immediately.

2. Never Give Out Your PIN to Anyone

While this tip may seem obvious to those of us who have had a checking account for years, it’s not always so obvious to new checking account holders. Your PIN should never be given out to anyone—not even bank tellers. If you are ever asked over the phone to directly give your PIN to the person on the other end, don’t do it! Most banks have an automated system that will ask you to punch in or say your PIN and then connect you to a teller or bank representative. Remind your family members and loved ones they are never to give anyone their PIN.

3. Use Stronger Passwords

Online banking is the fastest-growing sector of banking for scammers and thieves. While online banking provides great convenience, it also makes us more susceptible to theft. One way to ensure your security is to create a password that is strong. Don’t make your passwords too easy by using your birthdate or your child’s name. It’s a good idea to include a series of numbers, letters and symbols in your password to help ensure the security of your accounts.

4. Be Careful Where You Access Your Account

On just about every corner, you can pop into a coffee shop or local fast food place and get free Wi-Fi access. This allows you to get work done outside of the office, but think twice about using these connections to check your banking account. Remember, these are still public places, and you don’t necessarily know what security measures are in place. Someone looking over your shoulder as you log in or a hacker may be able to gain access to your account through a public Wi-Fi connection.

5. Avoid ATMs in Touristy Areas or That Look Out of Place

If you need to use an ATM, it’s always best to use one you are familiar with and that belongs to your bank. It’s a good idea to avoid ATMs in touristy locations or stand-alone ATMs that look out of place. Not only will you save yourself money by avoiding ATM fees, but you may also save yourself from having your information taken by scammers.

There are a number of ways that other people can gain access to your bank account. It’s imperative that you stay on top of your information, use strong passwords and be on guard when it comes to accessing your accounts online. While new technology is great and offers convenience, it can also give thieves more of an opportunity to gain access to your hard-earned money. Be alert, and do what you can to avoid the headache of having your bank accounts become the target of thieves.

Bottom Line

Regardless of where you do your banking, it’s important to take precautions and do your best to protect against bank account fraud. Following these five tips can go a long way in protecting your money and preparing yourself for any potential threats. You can also work with your bank to see what precautions they take in the event something goes wrong.

Tips for Banking

Your banking decisions can be big. From deciding where to keep your money to what types of accounts you need to use, these decisions impact your financial future. It’s important to be informed. Working with a financial advisor can help you be proactive about making the right decisions for your unique personal situation. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
As you’re contemplating what bank to use for your new checking or savings account, consider our guide to the best banks in America.