At this point, we all know that regular credit score monitoring is critical to keeping our finances safe and healthy. Suppose you’ve ever been unfortunate enough to be the subject of credit card fraud. In that case, you’re likely familiar with all of the tools that can be used to erase this fraudulent activity from credit bureau reporting (Equifax, Experian and TransUnion). But, what about when your personal information is compromised and a scammer tries to open a bank account in your name?
While not as commonly discussed as credit card fraud, bank fraud is becoming more and more of a big problem, especially as more consumer data is bought and sold on the dark web. In fact, more than 150,000 Americans reported new account bank fraud in 2022, and is expected to increase by at least 25% by the end of 2023.
So, what’s the gain for the scammer? Why open a bank account in your name if there’s nothing to withdraw? When a thief opens a new account in your name, they misuse it by overdrafting it as aggressively as possible until the account is eventually closed. Just like when credit lines are misused, this activity gets recorded and added to your record with ChexSystems, the leading consumer banking reporting agency. Just like when credits refer to your FICO score when they decide whether or not to approve you for a new account, there's a similar process for new bank accounts. Most major US banks (though not all) will consult your ChexSystems record before allowing you to open any new checking or savings account. If your record isn't clean and clear, this can cause significant issues in the future.
Time for Freeze
Most American adults aren’t in the business of opening new checking and savings accounts very often. If you’re looking for a little extra protection, especially among the latest data breaches, you can always add a ChexSystems security freeze to your consumer record. This freeze is free to request and prevents the approval of new checking, savings, credit card and/or loan accounts in your name without your express consent. Experts recommend a ChexSystems freeze if you have a clean record and have no immediate plans of switching banks, etc.
Requesting a ChexSystems freeze is free and takes just a few minutes. Anyone in the United States over 18 has the right to a freeze at any time. Get started by requesting a security freeze directly with ChexSystemswith ChexSystems. You can also refer to their website to read up on consumer reporting and disclosure reports.
Talk to Us
As IT and security folk, many of us at Crimson IT have proactively added security freezes to our consumer records as added protection. You can contact us directly if you have any questions or want to know more about our experience. We’d love to help.