5 ways to protect your bank account from identity theft

Vivian Thornton received quite a shock when she logged onto her bank account and noticed an unfamiliar debit charge for concert tickets totaling more than $2,000. In fact, the hefty charge had brought her account to a negative balance, says Thornton, who is a small business-owner and Charlotte, NC resident.

On the day this happened, in 2023, Thornton had used her debit card just once — to fill up her gas tank, she recounted to Bankrate. “I later went to deposit some checks online and noticed that unfamiliar charge. It was a really huge shock because I’ve never even purchased tickets through Ticketmaster, so it was kind of like, ‘Wow, where did this come from?’”

Thornton, who also had told her story in a TikTok video, was the victim of identity theft, which, among many other problems, could result in one’s checking or savings account being drained by fraudsters. Identity theft is one of the most common types of financial fraud reported to the Federal Trade Commission (FTC). In fact, the agency received more than 1 million reports of identity theft in 2023. 

The FTC has designed Jan. 27-31, 2025 as Identity Theft Awareness Week, and it can be an opportunity for consumers to learn more about this type of crime and ways to safeguard assets such as your bank account.

What is identity theft?

Identity theft takes place when someone gains access to your information and uses it without your permission. Such personal and financial information can include your name and address, Social Security number, bank account information or credit card details.

Whether a fraudster uses another person’s information to make unauthorized purchases, receive money or receive medical care, identity theft usually takes place for some form of financial gain.

A consumer’s first indication of becoming a victim might be unknown withdrawals or debits from a bank account or unfamiliar charges on a credit card, says Joannie Wei, assistant director, Midwest Region, FTC.

How identity theft takes place

It can be especially challenging to safeguard your personal information from criminals because they have so many ways of gaining access to it these days, including:

• Your wallet: As common as it is for financial information to be stolen digitally, some criminals may still try the old-fashioned method of grabbing your wallet for access to your credit cards, ATM cards and cash.
• Your trash: Paper financial statements you’ve thrown away could be intercepted by dumpster-diving fraudsters.
• ATMs, cash registers and gas pumps: Installing a small device, known as a skimmer, at these locations can enable thieves to collect your credit or debit card number, along with any PIN code you type in.
• Public Wi-Fi: If you’re accessing your financial accounts using public Wi-Fi at places such as a hotel, coffee shop or library, fraudsters can intercept information you transmit through your phone, tablet or laptop.
• Phishing: Scammers often reach out to people over email, claiming to be from their bank and requesting their passwords or other information. This is referred to as phishing, while the similar practice of smishing takes place when the contact is made over text message.
• Social engineering: Bad actors may try and establish trust to convince you to give them sensitive information, such as your bank account number or password. 

How identity theft can affect your bank account

Fraudsters may try to gain access to your information for purposes such as draining your existing bank accounts or opening new accounts in your name.

Fraudsters can gain access to your bank account and drain it.

By getting hold of people’s wallets or bank account login information, thieves can attempt to make debit purchases either online or in stores. They may also try to withdraw cash from a checking account or savings account.

In such situations, it can take time for a consumer to recover any stolen funds while the bank conducts an investigation. For instance, after Thornton’s account was drained by fraudsters who purchased concert tickets, it took around two weeks for her credit union to investigate and reverse the unauthorized charges.

Criminals can open a bank account in your name.

Fraudsters may open bank accounts using other people’s information to write bad checks, evade taxes, launder money or store money that was illicitly obtained.  

Because the account was opened using the victim’s information, it can prevent the victim from opening future bank accounts or obtaining credit.

At times, authorities have even alleged that bank personnel have used customers’ information to open bank accounts without their permission in order to meet internal sales quotas. Banks that have paid large fines in conjunction with such charges include Wells Fargo and U.S. Bank.

“When somebody has your Social Security number and your other identifying information, when they open a bank account in your name, that’s an indication they’re using your information in other nefarious ways as well,” says the FTC’s Wei “It’s possible they’ve filed a tax return or unemployment benefits in your name.”

Ways to protect your bank account from identity theft

Following these simple steps can help keep your hard-earned money in your bank account — and out of the hands of any unscrupulous individuals who may want access to it.

1. Don’t carry debit cards you don’t use regularly. ATM and debit cards you don’t use often may be safer at home than carried around in your wallet. (The same applies to credit cards you don’t use frequently and your Social Security card.)
2. Limit your debit card use. When funds are taken from your bank account as a result of skimming, it can take some time to recover the money while the bank investigates. Conversely, credit cards often provide zero-liability fraud protection if you report charges within 30 days.
3. Use multifactor authentication: This involves your bank texting or emailing you a unique code to enter each time you log on to your accounts — in addition to entering your password. This adds a second layer of security by requiring you to provide two forms of verification.
4. Don’t respond to calls, texts or emails asking for bank account information. “A cardinal rule that would prevent so much identity theft and fraud is just don’t give out personal or financial information to anyone in response to a request you did not expect,” says the FTC’s Wei. This could be a surprise call, text or email seemingly from your bank.” You may even see your bank’s name appear on your caller ID, but it can still be a scam. She adds if you want to check your account, do it independently without using any unsolicited links you’ve received.
5. Avoid clicking on links in emails supposedly from your bank. These emails could be from scammers trying to lure you to their own websites to provide your sensitive information.

Wei also recommends signing up for bank account alerts for charges over a certain amount. “Sometimes if you get an alert [about a charge] you don’t recognize, that could be a sign of identity theft.” 

In addition to alerts, some banks allow you to set up a verbal password, which would need to be stated in order to make transactions in person or over the phone.

“It’s worth having a conversation with your bank and asking, ‘What do you have in place to help me protect my account?’” says Eva Velasquez, CEO of the nonprofit Identity Theft Resource Center (ITRC). “And then take advantage of those things.”

What to do about unauthorized activity in your bank account

If you suspect you’ve become the victim of identity theft, such as by seeing strange debits or withdrawals from your bank account, it’s important you take action immediately. Important steps to take include:

• Freeze your debit card: If the account is associated with a debit card, freeze that card so it cannot be used further. This can often be done using your bank’s mobile app; otherwise, contact your bank to request the freeze.
• Report the activity to the bank: To help minimize the damage, contact your bank’s fraud department as soon as possible. They’ll likely initiate an investigation and freeze transfers and withdrawals from the account.
• Change your login credentials: Create a new password, and make sure multifactor authentication is set up. If you have security questions in place, creating a new set of them could also help keep fraudsters out of the account.
• Freeze your credit reports: When you set up a security freeze with the three major credit bureaus, this prevents creditors from accessing your credit file until you lift the freeze. This could stop fraudsters from applying for credit in your name.
• Check your credit reports: If someone’s been in your bank account, they may also have access to your credit cards. As such, monitor your credit reports for any signs of suspicious activity.
• File a report with the FTC: If you report identity theft to the FTC, you’ll receive a recovery plan that provides next steps, tracks your progress and pre-fills forms and letters.

The ITRC’s Velazquez recommends logging onto your bank account frequently to monitor transactions. “It’s a lot easier to remedy these things when we catch them early. We encourage people to look often.”

Bottom line

Having someone unlawfully take money from your bank account is just one of many forms of identity theft, while other similar crimes involve fraudsters using your information to make credit card purchases or obtain medical benefits.

The best defense for consumers against these types of crimes is to follow important rules regarding safely logging onto your accounts, monitoring the accounts and keeping vigilant for possible scams. Reacting quickly when you do suspect fraud is key in minimizing any damage that may have been done.

“When it comes to identity theft, a lot of times people feel ashamed or embarrassed about what they didn’t know,” says the ITRC’s Velasquez. “I would encourage people to let go of that and ask for help. The message for people is to reach out to the free and trusted resources available to them.”