Immediate steps to follow if you are a victim of banking fraud

In the recent past, innumerable cases have surfaced where there have been incidences of fraudulent charges on credit cards or unauthorized access to personal information. In wake of such rising cases of identity theft and data breaches, it can be extremely useful to know about actions to take once you are a victim of banking fraud. You never know when you or your loved one may land themselves in such an unfortunate situation.

Steps to Take If You’re a Victim of Banking Fraud

If you suspect you’ve become a victim of credit fraud, it’s crucial to act immediately. Every minute counts in preventing further unauthorized transactions and safeguarding your financial well-being. Here are the essential steps to take if you find yourself in this unfortunate situation.

#1 Contact Your Financial Institution

While there are several indicators of you becoming a victim of banking fraud, unusual or fraudulent transactions are usually the first red flag. At such times, the first thing to do is to contact your financial institution and let them know about the fraud and work out the best way to get out of the situation. Request them to block the problem account to prevent further transactions.

#2 Flag A Fraud Alert

It is important that you follow up with credit bureaus in order to prevent credit providers from granting any new credit, without your prior approval. You can simply request the credit-reporting bureau to flag a fraud-alert on your profile, as this would provide an intimation to credit providers. The fraud alert usually lasts for the initial 90 days after the account has been flagged, so that credit providers can go a step ahead to verify identity of the person, in case someone requests for credit under your personal details.

#3 Scan Bank & Credit Card Statements

Request the credit-reporting bureau and bank to provide you with current credit reports and bank statement. Carefully review these reports and statements to look for fraudulent charges or unusual transactions. It is also important to check through your infrequent or dormant accounts, for any incidence of identity theft where your personal details may have been leaked or hacked.

#4 File A Report With Local Police Department

Once you have reported the incidence to your financial institution, it is also important that you file a report with the local law enforcement. Keep a copy of the report with you for any further communication.

#5 Open A New Account

The best thing to do once your account has been hacked, is to close it and start a new account altogether, to prevent further damage. This holds true even for accounts that have not been compromised since, your personal details are going to remain the same and you never know when those accounts may get hacked. So, it’s always better to be precautious than repent later.

#6 Request Credit Freeze

You may also request your credit bureau to initiate a credit freeze. While this is not a mandatory step, it can definitely act as an added layer of protection. Such a request will allow the credit bureau to completely cut off access to your credit report, regardless of who requests it.

#7 Change Your Online Banking Passwords

One of the first things you should do upon discovering fraudulent activity is to change the passwords for all your online banking and financial accounts. This includes not only the compromised account but any other accounts that may share similar login credentials. Choose strong, unique passwords for each account and enable two-factor authentication whenever possible to add an extra layer of security.

#8 Monitor Your Credit Report

Regularly reviewing your credit report is crucial for detecting signs of ongoing fraud or identity theft. Look for any unauthorized accounts, inquiries, or addresses that you don’t recognize. You’re entitled to one free credit report annually from each of the three major credit bureaus (Equifax, Experian, and TransUnion). Consider staggering your requests to check your report every four months.

#9 Notify Credit Bureaus

If you confirm that you’ve been a victim of fraud, notify the credit bureaus immediately. Place a fraud alert on your credit file, which requires lenders to take extra steps to verify your identity before granting credit in your name. For more comprehensive protection, you can also place a credit freeze, which prevents anyone from accessing your credit report without your explicit permission.

#10 Set Up Account Alerts

Many banks and credit card issuers allow you to set up alerts for transactions on your accounts. This can help you quickly identify any unauthorized activity in the future. You can typically customize these alerts based on transaction type, amount, or location. Enabling real-time notifications can give you a head start in detecting and reporting suspicious transactions.

#11 Document Everything

Create a detailed record of all communications and actions taken regarding the fraud incident. This includes copies of police reports, correspondence with your bank and creditors, and any other relevant documentation. Keep a log of all phone calls, including the date, time, and name of the representative you spoke with. This paper trail can be invaluable if you need to dispute any fraudulent charges or take legal action.

Thus, with little handy information and some presence of mind, you can easily surface out from such difficult situations. The best thing to do however, to mitigate the risks of such frauds, is to always be on alert whenever you are making a transaction and keep a track of people and platforms with whom you share your personal information.

Conclusion

Becoming a victim of banking fraud can be a harrowing ordeal, but remember that you’re not alone. By acting swiftly and decisively, you can minimize the damage and protect yourself from further losses. While no one is immune to the risk of fraud, you can take proactive steps to safeguard your financial well-being. Regularly update your passwords, enable two-factor authentication, and be cautious about sharing personal information online.

Security solutions like Quick Heal Total Security can also help protect your devices from malware and phishing attempts that may compromise your identity theft bank account information. By staying informed and proactive, you can significantly reduce your chances of falling victim to banking fraud in the future.