What are Banks Doing to Prevent ID Theft

Identity theft continues to be a major problem in the United States, where it was responsible for over $50 billion in losses. One of the main targets for identity thieves has always been bank accounts. Armed with your account information and some personal information about yourself, many criminals are capable of completely draining your bank account. There have even been cases of identity thieves locking the actual owner out of their account. These horror stories come from people around the nation enrolled with almost every banking institution. So what are the banks doing to prevent identity theft and the loss of your money?

As it turns out, most of the well known banks are starting to implement identity theft protection measures. In order to draw more consumers and stand out above the competition, some local credit unions and banks are even teaming up with insurance providers. When a customer signs up with the bank, they get automatic identity theft protection with them through the insurance company. Recently, many of the major banks, such as Bank of America or Wells Fargo, have made guarantees that any money you lose as a result of identity theft will be restored if it is reported within their time frame. Clearly, many banks are doing their part to stop identity theft, but it doesn’t necessarily keep your information safe.

What else can I do to Prevent ID Theft?

If you don’t think your bank is doing enough to protect you or want additional protection for other forms of identity theft, you’ve got options in the matter. Here’s a look at two of the major forms of identity theft prevention available.

Identity Theft Protection – Identity theft protection programs differ, but most offer the same basic coverage. They’ll do everything they can to prevent identity theft, but will also provide you with monetary compensation should it occur. Most companies will also put locks and safeguard your accounts if you believe your identity has been stolen.

Credit Monitoring Services – The major credit bureaus also offer a way to keep an eye on identity theft, although not truly prevent it. With a credit monitoring service, you’ll get alerts and reports in any credit changes on your report. This could be helpful if you’re more interested in just finding out if identity theft has occurred.

Additional Resources:

• More banks offer free help for victims of identity theft
• Are banks doing enough to prevent ID fraud?