Identity theft and hacked accounts aren't just credit card issues. They can happen with bank accounts, too. It can be alarming to check your balance only to find money missing, but fortunately, you're usually not responsible for these unauthorized transactions.
The key word here is "usually." Swift action is essential to minimize the damages. Here's what you need to do the second you realize someone has stolen money from your checking or savings account.
The sooner you alert your bank of the situation, the better the outcome will be for you. Ideally, you review your checking and savings accounts frequently enough to catch unauthorized transactions. Or you could set up transaction alerts to catch unusual spending, like large withdrawals. Check with your bank to find out if this is an option.
For lost debit cards or debit card PINs, you typically want to notify your bank within two business days. If you do this, the most you could be held liable for is $50 of the thief's expenses. And you may not owe anything. If you notify the bank of a lost debit card after two business days, you could be liable for up to $500 in unauthorized transactions.
You definitely want to tell your bank within 60 days, or else you could be found liable for all the thief's unauthorized transactions that occur after the 60-day mark. But to hold you responsible for these, your bank would have to prove that the transactions wouldn't have occurred had you sounded the alarm before the end of the 60-day period.
The bank's investigation
When you alert your bank to fraudulent activity on your savings or checking account, you will likely need to sign an affidavit saying that you did not make the purchases or withdrawals. Then, the bank has 10 days (20 days if the account has been open for fewer than 30 days) to investigate your claims.
The bank must correct the error within one business day if it determines that someone did steal from you. It must notify you of the findings within three business days.
If the bank is unable to complete its investigation within 10 (or 20) days, it must issue you a temporary credit, minus a maximum of $50, while it continues to investigate. However, it may not have to do this if you fail to promptly return your affidavit.
Most investigations conclude within 45 days, though it could take up to 90 days if the disputed transactions occurred outside of the United States, if they occurred within 30 days of account opening, or if they were debit card point-of-sale purchases.
Next steps
If your bank account information was stolen, there's a chance some of your other financial information was compromised as well. It's worth pulling your credit reports to check for unusual activity or accounts you don't recognize. If you find any, be sure to notify the credit bureau and the financial institution associated with the account.
You may also want to change your login information for your financial accounts and any accounts you use for online shopping. Keep an eye on your credit card statements going forward so you can catch any fraudulent transactions immediately.
Preventing bank account fraud
It may not be possible to avoid bank account fraud in all cases, but there are things you can do to reduce your risk of becoming a victim, including:
- Keeping your bank account numbers, debit card numbers, and PINs private
- Not accessing bank accounts on public wifi networks
- Not opening links or responding to suspicious emails asking for bank account information
- Not entering your bank account information on suspicious websites
Setting up transaction alerts is another great way to keep an eye on your bank accounts if your financial institution permits this.
Having your bank account hacked can be stressful, but as long as you act quickly, you shouldn't have to worry about being held liable for someone else's actions. If you have any questions about your bank's investigation into the fraud or what you should do next, reach out to your bank for more details.
