So, you’ve been reading up on all the latest schemes and plots that thieves use to steal your money. You’ve read about devices that grab your passwords out of thin air, people who will dig through your leftover spaghetti for a bank statement, and all sorts of other frightening things. Well, I’m here to tell you to relax for a moment. There’s a difference between being vigilant and cowering in a corner of your room, afraid to leave the house. Banks are your first line of defense, and they’re working very hard to make sure thieves don’t get past them.

It used to be that a banks main concern was keeping its money safe. Bigger locks, thicker doors, better alarm systems, all to make sure those dollars in the safe were just that, safe. Now the focus has shifted. Stealing cash from a bank is as simple as asking for the money. Tellers are trained to follow directions of any robber and give up money without protest, even if there is no weapon. They’re told to wait until the robber has left the bank before hitting alarms or even telling supervisors. Robbing a bank is the easiest thing in the world (it’s getting away with it that poses a problem).

So if the bank isn’t trying to keep your cash safe, what are they doing? They’re working very hard to keep your identity safe, which is even more valuable. From high tech online banking security, to simply training employees, banks are focused almost entirely on keeping your information private. Although there are federal regulations in place to keep you safe, most banks go above and beyond this and hire private security firms.

So the next time you’re asked for your identification at the bank, don’t be insulted! They’re doing their best to make sure that your information is safe. Being asked for ID is one of the major complaints I have heard from customers of my bank. They find it rude, and are upset that the bank doesn’t trust they are who they say they are. However at the same time they are extremely upset if an unauthorized transaction happens on their account. You can’t have it both ways, so banks have chosen to ask everyone for ID. It’s simply the world we now live in.

Generally speaking, the only information you will get from a bank will be about accounts you own. Banks are particularly sensitive to people “fishing” for information. Therefore you won’t be told balances on accounts, status of accounts, or even if an account exists unless you’re a signer on them. This might be frustrating to some people, who may have legitimate reasons to ask, but overall the bank will take no risks.

Banks are there to protect your money, and even more importantly your identity. Believe it or not, it is much worse to be the victim of identity theft than to have all your money stolen. That’s why banks are doing everything they can to keep your information safe, but you still have a part to play. Make sure you’re not leaving your bank statements around, don’t give out your pin number to your card or your online banking, and make sure that your checkbook is secure and doesn’t get lost. If you think that any of these things are compromised, tell your bank immediately. If you work together with your bank, your identity will be as safe as your money is behind that big steel door.

Alright, so you’ve heard the talk around the water cooler about identity theft and the ways that criminals are committing it. But how much do you really know? Are all the stories you hear true? Let’s take a look at some examples of some not so common techniques criminals use.

Mailbox Diving

While not particularly common, theft of your postal mail can be very damaging. If you’re old school and pay your bills by check and receive paper statements, you’re the most at risk. Essentially putting all that information in a box in front of your house without a lock is asking for it to be stolen. But what if you live in an apartment or condo and you do have a locked mailbox? Believe it or not, you’re still at risk. Those large banks of mailboxes have a big door on the back that opens like a trunk hatch, exposing every mailbox inside. It only takes a crowbar and a few moments for a thief to get to every mailbox in your apartment complex. One stop shopping.

Using Computers

Some of us are from the generation that remembers never having computers, much less the internet. Once upon a time computers were safe and the internet was a novelty to be played innocently with. No longer. Your computer is now the gateway for hackers who make a very nice living stealing your money. These days going on the internet (or indeed, even plugging into the modem at all) without anti-virus software or firewalls is like shaking the hand of an Ebola patient. You don’t even have to use your credit cards online to become a victim. Virus writers now are targeting your passwords and your online banking websites. Even worse than using your own home computer is using a public one. The terminals at a library are no place to be checking your balance. Want to buy something online? Doing it at the library is like giving that Ebola patient a nice big kiss.

ATMs

It’s Sunday at 5 o’clock, you’re about to go out to dinner with some friends and you don’t want to pay with your debit card (want a good way to tick off your waiter? Tell him to split the bill among five cards all with different amounts). You go to one of those stand-alone ATM booths (more secure than the ones at the gas station, right?), and swipe your card through the reader on the door to get in. The light doesn’t turn green, and the door doesn’t open. Frustrated and late, you decide to frustrate the waiter instead and leave. What’s the problem you ask? You just became an identity theft victim.

A technique criminals sometimes use is the fake card reader. Sometimes these are placed directly on some ATMs, but most often they’re installed on bank doors or those stand-alone booths. The thief will remove the card reader that opens the door, and attach an identical one that they have modified. Instead of reading the card number and sending a signal to open the door, this new reader sends a signal to a wireless device or a memory card, storing your card number. You just think that the door isn’t working, when in reality you just gave your card number to a thief (in fact, you probably gave it several times as most people will try three or four times to open the door before giving up).

These are the more unusual ways to become a victim, but the lesson here is the same in general. Vigilance and knowledge are your best defenses. The only thing you can count on from identity thieves is ingenuity, they are constantly thinking up new and devious ways to get your cash. But if you stay up to date on the latest scams and arm yourself with the know-how to avoid them, you’ll be safe and sound.

Shredding financial junk mail is probably one of the easiest and most effective ways to prevent identity theft. Many people might perceive identity theft to be a crime committed by technically savvy, intelligent, and cunning thieves. While in some cases this is true, in most cases this crime is committed by people who are not above diving into dumpsters and looking through your leftover spaghetti.

Credit card companies are the main concern in combating postal identity theft. While these companies are trying to make things easier for you by pre-filling all your information on those applications, they’re really just making it easier for thieves to open those accounts in your name. If you’re anything like me, you get tons of credit card offers and applications, with a fair amount of “pre-approved” cards sprinkled in for good measure. These are red flags and should be ripped up immediately. It is entirely too simple for someone to reach into your garbage and pick out these envelopes, sign your name, and send them off.

Another piece of mail you should be cautious of is your bank statement. These hold a lot of information about you, your name, your account number, and balance. Some statements might even have images of your signed, cancelled checks that people can use to create forgeries. A quick search of recent news stories will bring up plenty of instances where people went from mailbox to mailbox taking statements. One that occurred in my neighboring town involved a woman and her daughter delivering the local newspaper. They drove down the street stopping at every house, dropping off the newspaper, and taking peoples bank statements. They then used this information to make withdrawals from their victim’s banks.

One of the best defenses against this kind of fraud is vigilance and shredding. Having a small shredder in the home is now an essential piece of equipment. If you don’t have one or cannot buy one, some banks or institutions have “Shred Days,” where you can bring all your saved junk mail (don’t throw it out!) and give it to them to shred in the same industrial shredders they use. Another solution is to convert all your paper statements to an online format. Many banks and credit card companies offer this service, and oddly enough it is more secure than paper in your mailbox. It is much harder to hack a secured website than it is to walk up to a mailbox and take out an envelope. These online services archive your statements for a long time, but you can also print them out and hold on to them as a backup.

Ok, the unthinkable happened. You wake up one morning and get a cup of coffee on your way in to work. You swipe your debit card, there’s a pause, and DENIED flashes across the screen. Denied for a $2 coffee? How can that be? Embarrassed, you leave the coffee and slink out of the shop. You get into work and check your account online, only to find that you now have -$83.65 in your bank. You’ve been hit with debit card fraud.

Many people are surprised to learn that most debit card fraud occurs when the card owner still has the card in their possession. I certainly was surprised when I had to leave the coffee steaming on the counter and found that someone in California bought an X-Box with my money. Follow the tips in the Debit Card Fraud Prevention article to make sure this doesn’t happen to you. But if you’re like me and this has happened to you, keep reading to see how you can get your money and life back on track.

Do Some Detective Work
The best weapon you have against fraud is information. Check your bank account online to see what is going in and coming out. As soon as you see something weird, note the date it happened and the exact amount, and most importantly, where. If something was bought in New Jersey and you live in New Mexico, you might want to take a closer look.

Tell Your Bank
As soon as you think you’ve been defrauded, tell your bank. Each bank has different methods for dealing with fraud, mine had me fill out an affidavit stating that I did not authorize the transaction. This may be a long and tedious questioning process, but you have to realize the bank is going to end up paying you back your money and taking the fraud as a loss, instead of you. Therefore they want to make absolutely sure you’re telling the truth, and not just trying to get out of paying a big bill. This process can take up to 10 days while the bank researches the transaction to make sure that it was fraudulent.

Do it Fast
There is a limited amount of time between when a fraudulent transaction occurs, and when you can get reimbursed for the funds. Federal law states that a customer is liable for a maximum of $50 if they report the fraud within two business days, $500 if reported within 60 days, and unlimited amounts if reported after 60 days. Most banks, if the fraud is obvious and the customer is in good standing, will cover all funds that were stolen, but only after an investigation period.

The keys to recovering from fraud are information and communication. You have to arm yourself with knowledge not only of the comings and goings of your own accounts, but also the laws governing fraud. Once you are conscious of these things, getting in touch with your bank and staying in touch with them will expedite your recovery immensely.