Safety is one thing everyone wants when dealing with finances. They want a scenario where they can have peace of mind, knowing that no hands are waiting to snatch them away from their grasp without a moment’s notice. In this blog post, we shall be checking out how to identify a bank fraud to keep your account safe. But before we run along on that journey, let us first check out what bank fraud actually is. 

What Is Bank Fraud?

Fraud basically is basically a wrongful or criminal deception intended to result in financial or personal gain. In the event of banking, bank fraud is defined by the Wikipedia online encyclopedia as the “use of potentially illegal means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently posing as a bank or other financial institution. In many instances, bank fraud is a criminal offence.”

Now that we know what bank fraud is, we can now go on to figure out how to know if your bank account has been compromised. 

How To Know If Your Bank Account Has Been Compromised

There are various ways you can know if your bank account has been compromised, they include: 

1. Password changes

If you find out that you cannot log in to your bank account and have to go to recover your password, it is one sign pointing to the fact that your bank account has been compromised. 

2. Unexpected login attempts

If you get notifications or emails about failed login attempts on your bank account, especially from sources you do not know or places you have never been to, that is a sign that your bank account may have been compromised. 

3. Suspicious activity messages

Sometimes you may receive messages from your bank about an unauthorized party trying to make transactions with your account. That is one sure way to tell that your bank account has been compromised. Also, if while trying to make purchases, your debit or credit card gets denied. You sure have had your bank account compromised.

4. Unusual transactions

If you receive alerts about transactions you never made or receive notifications telling you that your bank account is too low for a transaction, you must understand that your bank account has been compromised.

5. Other signs

Sometimes you could receive unexpected password reset emails or find out that your account information such as your phone number or account name or home address, know that your bank account has been compromised.

What Are The Signs Of Identity Theft Related To Banking

If you suspect that your identity has been stolen and your bank account has been compromised, here are some signs that you'd see.

1. If you receive notifications of unexpected and unauthorised withdrawals supposedly by you may come from your bank account.
2. When you notice a sudden and mostly unexplained drop happening to your credit score denying you of some credit services you used to enjoy.
3. You may begin to receive credit cards in your name for bank accounts that you never opened.
4. You may begin to receive notifications or statements of accounts via emails of charges to your account you had nothing to do with.
5. You notice that items listed on your credit report are incorrect or never ordered by you.
6. Collection or repossession notices of goods you never bought.
7. If you do not get notifications of your bills or other mail from your bank anymore, you may have had your identity stolen.
8. If merchants you used to buy things from begin rejecting your checks, you may have had your identity stolen without your knowledge. 
9. When a debt collector comes knocking at your door, being about some crazy amount you owe, know that your identity may have been stolen.

These few signs show that you have been a victim of identity theft.

How To Identify Unauthorized Transactions On Your Bank Statement

Looking to identify unauthorized transactions on your bank statement? Here are the things you should look out for:

1. Transactions from businesses or merchants you do not know, usually buy from or used for a long time.
2. Transactions pinned at locations you haven't visited recently or in a very long time.
3. Transactions with significantly large purchases that are out of your spending habit.
4. Multiple similar small charges from an unknown source.
5. Recurring charges you cannot remember setting up or didn't authorize.
6. Typographical errors in mechant names, addresses and transaction descriptions recorded on your bank statement.

These pointers should come in quite handy in helping you identify unauthorized transactions on your bank statement. 

What To Do If You Suspect Bank Fraud

If suspect  bank fraud in your bank account, there are a few things you need to do:

• The first thing you should do is contact your banking service provider to report the issue. 
• Changing all passwords and transactional pins on all your accounts can also help control the situation.
• It is also imperative that you file a police report detailing what you know about the crime. 
• Also you will need to place a fraud alert on your credit report to monitor for further suspicious activity.

These pointers would help you get things in perspective if you suspect that you may have been defrauded on your bank account.

How To Report Suspicious Activity To Your Bank

When reporting suspicious activity on your bank account you need to take the following actions:

• First, let your bank know about the issue first.
• Then you can go and make a report to the police and/other relevant authority or law enforcement agency through their official channels (mail, email, contact number or more).
• You can also share the information with other banks and financial houses of which you have an account with to keep them on their toes in case your accounts with them become the next target.

These pointers are your surest bet at getting suspicious activity on your bank account handled professionally.

How To Protect Yourself From Bank Fraud

In order to prevent bank fraud, you need to keep these pointers in mind:

1. Keep your banking information safe.

Never share your personal financial information with someone you don't trust. In fact, many bank fraud alerts are triggered when suspicious access to sensitive data occurs. Make sure your passwords are strong. It’s better to use alphanumeric combinations than personal details like birthdays or anniversaries. Consider using a secure password manager to keep track of your credentials. Finally, be extremely cautious of phishing websites, which are a common method used by fraudsters and often cited in official bank fraud alert warnings. 

2. Keep an eye on and report any questionable activity.

As a consumer, you should make sure you keep a close eye on your account to spot any anomalies and notify the authorities right once.

Banks have the option to implement both automatic and human whistleblower programs, which ensure that anybody who exposes bank wrongdoing would get compensation and remain anonymous.

3. Make use of checks and balances

By establishing a system of checks and balances, banks may contribute to adding an additional degree of security to their financial operations. This is done to ensure that no one individual has complete control over a financial transaction. It may occur if the bank divides handling and record-keeping duties into distinct divisions that collaborate with one another.

4. Take precautions against identity theft.

You should think about registering for identity theft protection, which may be accomplished by contacting the three major credit agencies (Experian, Equifax, and TransUnion) independently. The most safe approach is to establish a credit freeze on your report, but you may also set up a fraud alert, which is a less strict measure. Another option is to sign up for a paid identity theft protection plan offered by these agencies, which can include additional monitoring tools.

Using the phone number shown on your bank's official website to get in touch with them in case of problems is another way to guard against identity theft.

How To Keep Your Online Banking Account Safe

To keep your online banking account safe, you would need to do the following:

1. Use unique passwords 

You should consider using unique passwords for any of your accounts. Make sure that they incorporate numbers and letters. Ensure you do not use your date of birth, wedding anniversary or any other easy to guess detail. Do not use the same password for all your accounts. You can get a password manager to help you keep track of all of them. Also update your passwords on a regular basis and use security questions as backup security.

2. Leverage on 2 factor authentication

Use two factor authentication to add an extra layer of security on your bank accounts so if the hackers get the first, they won't be so lucky with the other and your account is safe. 

You could also get an authenticator app to help you protect your personal information online.

3. Stay away from public wi-fis

Public wi-fis - though free to use - can cost you a lot. Steer clear of them. And if you have to use them, do not use them on any app or platform that will request you to log in. There can be malware installed on the wi-fi that steals your information when you use them to log in to your bank account.

4. Regularly update your antivirus software

Antivirus softwares helps keep your devices from malicious software which can be lurking around the internet looking for an opportunity to steal your personal information. Criminals constantly update their tactics to counter softwares, which creates newer measures to handle them. Regularly updating your software can help you stay one step ahead of these attacks.

5. Use ad blockers

Many a time, malwares are hidden on adverts that pop up on websites or redirects. Installing ad blockers will help keep the wolves at bay.

6. Use only features and tools recommended by your bank.

Do not use third party apps, Tools or more to access your bank account. Only use designated ones approved by your bank on official stores.

Final Words

Now that we have taken pains to understand how to identify a bank fraud and keep your account safe, we will continue to encourage you not to share your personal information with others. Use strong passwords and regularly change them. Protect your electronic devices and report all suspicious activity to the appropriate authorities as soon as you notice. 

In case you need solutions as an organisation to keep your bank account and other parts of your system safe, you can always trust us at Youverify to help you out. With more than 2,000 clients worldwide trusting us including MTN and Standard Chartered, you can be sure of the best service that won’t break your bank. Book a demo today!