Finding a Bank That Will Keep You Safe

Although there is no foolproof way to protect yourself from identity theft, choosing your bank wisely could significantly reduce your chances of becoming a victim of identity theft. Since identity theft is a multi-billion dollar crime, most banks realize that they have more to lose than just customers if any of the accounts they hold are breached. Because of this many banks have begun implementing stringent safeguards to help protect their customers. However, other banks have remained completely lax so there are certain features you want to make sure you look for when it comes to choosing a new bank.

Key Features You Don’t Want to Do Without

1. Look for a bank with identity theft prevention tips and information on its website. Education is one of the primary ways identity theft stands any chance of being eradicated. If a bank’s priority is to inform their customers about how they can work at protecting themselves, that bank is clearly trying to work toward a future where identity theft no longer exists or at least isn’t as rampant as it is today. A bank aimed at preventing identity theft and not merely reacting to it is a bank you want to be at.

2. Make sure your bank gives you the option of opting out of paper statements—and then opt out. It’s estimated that 70% of all bank related fraud stems from papers with account numbers and other personal information on them falling into the wrong hands. Obviously, doing away with bank statements altogether isn’t a wise idea. But switching to electronic statements of some sort can significantly reduce your chances of becoming a victim of identity theft or fraud. When you look for a bank try to find one that will help you minimize your risk factor in every way possible—offering electronic statements is just one of those ways.

3. Find a bank that will notify you by email or telephone when activity that doesn’t match your usual spending practices is initiated. Although this isn’t exactly a widespread practice, a handful of banks have begun implementing their own variation of it. Some have employees call you when a purchase is being made outside of the state where you live to see if you are on vacation or if your information might have been stolen. Others send emails when purchases for large dollar amounts are made to make sure you authorized the transaction. Although a bank with this feature might be more difficult to find, it could be worth every extra minute you spend searching online if an attempt at stealing your identity fails because of extra safeguards like this.

4. Inquire about whether or not a bank will send out a paper change of address form to an existing address before beginning to send sensitive information to a new place. Since a majority of cases involving existing account fraud demonstrate that thieves who steal credit or bank account numbers usually have the mailing addresses for those accounts changed before going on a spending spree (to prolong the amount of time it takes for someone to realize a card has been stolen) having your bank mail something to your existing address before making that change guarantees that you will be notified before an identity thief can ever start receiving your credit card bills at a new address.

What Banks Have Solid Reputations?

If you are like most people, in addition to wanting a bank that offers extra layers of security you also want a bank with some sort of name recognition—a bank that exists not only in your own neighborhood, but is also easy to find when you are traveling for business or are away on vacation. You want a bank that comes highly rated and is easy to access.

Websites like www.bankrate.com exist not only to give you informed data on current interest rates, but they also give banks individual ratings that help you determine whether or not they are safe places to put your money.

In recent reports seeking to determine which banks rated the highest specifically in regards to identity theft, here are three that came out on top.

1. Bank of America (www.bofa.com). In addition to implementing some of the practices mentioned above, Bank of America credit card holders are also given the option of using the free “Shop Safe” service that allows them to generate new account numbers good for one use when making purchases online. The new number will link back to their existing account, but if the number is ever stolen it will make it impossible for a thief to make fraudulent purchases.

2. Wells Fargo (www.wellsfargo.com). Wells Fargo was one of the first banks to allow customers to sign up to receive electronic notifications when any personal information (address, etc…) is changed. Even quicker than snail mail, this methods keeps account holders keenly aware of anything that may be going on with their accounts.

3. Citibank (www.citi.com). Citibank takes things even a step further than informing customers on how to protect themselves. This bank also offers its own free online fraud protection program known as SafeWeb which offers free coverage and full financial protection in the event your accounts with them are ever compromised.

Although having a good bank greatly reduces your chances of becoming a victim of identity theft, you still need to be proactive and take every precaution you can to protect yourself. But knowing that you have a bank working almost as hard as you are can provide incredible peace of mind. So choose your bank wisely.