Protecting Your Bank Account and Routing Number: Essential Tips and Actions

Your bank account number is a unique identifier that distinguishes your specific account from others at your financial institution. Similarly, your routing number identifies the bank or credit union where your account is held. Together, these numbers are crucial for direct deposits, bill payments, automatic transfers, and more. However, if these numbers fall into the wrong hands, you could become a victim of severe financial fraud.

What Can Someone Do With Your Bank Account and Routing Number?

If someone has both your bank account and routing number, they can commit a wide range of fraudulent activities that could harm you financially. Here are some potential risks:

Fraudulent Payments, Withdrawals, and Transfers

With your bank account and routing numbers, someone could make unauthorized ACH transfers and payments. The Automated Clearing House (ACH) network processes transactions for roughly 10,000 financial institutions domestically. Regularly check your bank transactions to spot any irregular activity and act on it before problems escalate.

Unauthorized Purchases Online

Scammers can quickly run up charges by using your bank account and routing number to make online purchases. Some online retailers make it even easier for criminals by only requiring a bank account number to make purchases.

Counterfeit Checks

Someone can use your bank account and routing numbers to create fake checks. They can then cash those checks or use them to pay for goods and services. Scammers can deposit funds into their own account either digitally using a smartphone or physically at a bank or ATM.

Money Laundering Through Your Account

If you notice an account deposit you don’t recognize, contact your bank immediately. Someone may be using your account to launder money obtained illegally.

Identity Theft

Criminals can use your banking information and any other personal data they collect to steal your identity. These schemes are often employed to open new credit cards, receive your tax returns, and commit other forms of fraud.

What to Do When Someone Has Your Bank Account Number

If someone gains access to your bank account number through a phishing scam, data breach, or other shady methods, it’s essential to take action right away. Here are some steps to help protect yourself against identity theft and financial damage:

Review Your Bank Statements

Scan through recent statements to spot any suspicious transactions. Make a list of the unauthorized transactions you find so you can share the activity with your bank. Consider setting up text or email alerts from your bank about potentially suspicious activity, including large purchases and cash withdrawals.

Contact Your Bank

If you spot unauthorized ACH transactions on your bank statement, notify your bank of the incident within 60 days to avoid paying for those charges. Explain the situation to a representative at your financial institution to prevent further fraudulent activity. The bank may freeze your account or cancel it and open a new account with fresh account information while they investigate.

Protect Your Credit

After reviewing your transaction history for fraudulent activity, check your credit reports for other instances of fraud. You have the right to freeze your credit file, making it harder for fraudsters to open debt accounts using your credit. Additionally, you can ask Experian to place a fraud alert on your credit report, which cautions lenders that you could be a victim of identity theft and urges them to verify your identity before approving new credit.

Report the Fraud

File a fraud report through the Federal Trade Commission (FTC). The FTC uses these reports to help build cases against scammers. If you’re a victim of identity theft, report your case at IdentityTheft.gov. Consider filing a report with your local law enforcement as well; while they may not investigate your case, the report could help you dispute fraudulent transactions.

Change Your Passwords

Protect your bank account by immediately changing your online banking password to a strong password and adding multifactor authentication. You may also want to change passwords to your other online accounts. Security experts recommend changing your online passwords every three months as data breaches become more common.

How to Protect Your Bank Account Routing Number

Keep your bank account safe by being vigilant about protecting your banking information. Here are some tips to keep your bank account and routing number safe:

Don’t Use Your Account and Routing Numbers to Shop Online

Ideally, use a credit card because they offer more protection than a debit card. Just be sure to pay your bill in full before the due date to avoid interest charges. Prepaid cards and money transfer apps are alternatives that don’t require you to enter sensitive banking information on the checkout page.

Don’t Give Your Account Information to Strangers

It’s possible to reveal your account information unknowingly. For example, don’t use paper checks if more secure forms of payment are available since the account and routing numbers are listed at the bottom of the check. If you must send a check in the mail, wrap it in paper so this sensitive information isn’t visible through the envelope.

Don’t Enter Banking Information on Unprotected Sites

Only enter your bank account information on sites that employ HTTPS encryption. You can verify this by looking for HTTPS at the beginning of the site’s URL or a lock icon on the address bar.

Be Aware of Phishing Scams

A phishing scam occurs when someone tries to trick you into revealing sensitive information, usually by email or over the phone. One common phishing trick is to send an email disguised to appear as your bank or another company you trust. These emails usually include a link that may appear legitimate. Once you click the link, you can be taken to a website that logs your keystrokes to capture sensitive information like your bank account login or account number. As a general rule, don’t click on suspicious links. If you’re unsure whether a link is legitimate, hover the mouse over the link to reveal the website address, which should help you determine its authenticity.

Use Strong and Unique Passwords

Try to use long passwords; generally, the longer, the better. Hackers have tools that help them guess every possible password combination. According to ERMProtect, a hacker can crack a simple seven-character password that only uses numbers and letters in one day. By contrast, adding characters, including capital letters, could take up to seven years to crack.

Frequently Asked Questions

Is It Safe to Share My Routing Number?

Sharing your routing number alone is generally safe, but it’s best to avoid sharing it unless absolutely necessary. Always be cautious and ensure you’re dealing with a trusted entity.

Can Someone Withdraw Money With My Account Number and Routing Number?

Yes, if someone has both your account number and routing number, they can potentially withdraw money from your account. It’s crucial to monitor your account regularly and report any suspicious activity immediately.

Are You Liable for Unauthorized Bank Account Transactions?

If you report unauthorized transactions promptly, you are generally not liable for them. However, the specific terms can vary by bank, so it’s essential to understand your bank’s policies.

The Bottom Line

Your bank account and routing number are essential for everyday banking, but if this sensitive information falls into the wrong hands, it can wreak havoc on your finances and your credit. Take steps to protect yourself on both fronts. Safeguard your bank account by regularly monitoring your statements for fraudulent activity and employing the tactics above to shield your sensitive information. Free credit monitoring lets you receive real-time alerts of changes to your personal information and suspicious activity on your credit report so you can take action if you need to.

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