By John Campbell
If your debit card is stolen or your debit card account is compromised your bank accounts will be wide open for theft. The sooner you find out your account is compromised, the better.
Perhaps the best way to monitor your bank accounts is to get online. If your bank offers online banking you should sign up immediately if you’re not already wired in. With online banking you can get up-to-date bank account information from any Internet enabled computer that’s hooked into the World Wide Web. With online banking you may also be able to transfer money between accounts, pay bills online and manage your checkbook electronically.
Monitoring your bank account is the best way to detect any problems with your account before they balloon out of control. Early detection is the key to minimizing any potential losses if someone is in the process of cleaning out your bank accounts. The higher the daily withdrawal limit, the faster your money could be drained from your account at any ATM. The sooner you can report an unauthorized transaction, the faster your accounts can be frozen and your lost funds can be recovered.
Your best bet for fraud detection will be to check your bank accounts online at least three times a day - morning, noon and night. Any suspicious activity or unauthorized transactions should be reported immediately. As long as you report any unusual activity with your accounts you should be liable for no more than $50 in losses if the fraud is reported within a few days of taking place. After a few days your liability may rise as high as $500. After 60 days, many banks will not cover your losses if you neglect to report them within that time.
You need to know exactly what protections your bank has in place to protect you in case of fraud. If your bank account is wiped out by a thief you may be in a desperate situation in which you can’t pay your bills. Your bank may be required to provide you with provisional credit until your ultimate liability can be determined and a criminal investigation can be launched. Good banks will likely offer you provisional credit within 5 business days and restore your balance stolen, minus liabilities, within 10 days. You should also insist that your bank notify any creditors and the credit bureau if any negative notations on your credit report arise from bank fraud.
If the bank you do business with doesn’t offer robust fraud protection for your accounts, you may want to look into opening new bank accounts elsewhere. Early fraud detection is only part of the solution. Your bank should be willing to do whatever it can to ensure that your accounts and your finances are well protected. Otherwise, it may cost you.
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John Campbell is the writer and editor of CashBuzz, A financial portal for the rest of us. Check out cashbuzz.com for the latest articles on money management and tips and tricks that can help improve your finances. This article may be reprinted on your Web site if the copyright, author information and active link are included.
