How to Check for Bank Accounts You Didn’t Sign Up For

Experian named deposit and checking account fraud among the biggest fraud trends of 2023. In 2022, the Federal Trade Commission received over 110,000 complaints about new account bank fraud that year alone. Since these incidents often go unreported, the exact number of incidents could be much higher.

Unless you see an unusual transaction on your bank statement, you might not know someone has opened a bank account in your name. That’s why it’s essential to be proactive. Here’s what you can do to protect yourself from scammers.

How do you check if scammers opened a bank account in your name?

The best way to know if someone has opened a bank account with your credentials is to request two reports from ChexSystems: your consumer disclosure and your consumer score. These can give you an idea of any negative marks against your name in the banking industry.

You should also request a copy of your credit report from each of the three credit bureaus. These reports don’t typically include a rundown of all your bank accounts, but it’s a good place to verify your name and your Social Security number hasn’t been tarnished by a criminal.

How fraudsters open bank accounts in your name

Opening a bank account requires a few key pieces of information: name, a government-issued ID and a Social Security number or Individual Taxpayer Identification Number. If your Social Security Number is floating around the dark web, it’s fairly easy for a fraudster to create a fake ID and use your SSN to open a new account.

For example, one couple recently indicted by a federal grand jury in Washington State opened fake business accounts using real customers’ names and linked those accounts to their personal checking and savings accounts to steal $1.4 million.

Scammers can also take the old-school approach: digging through your trash and uncovering old tax returns or other documents with your confidential details.

Why do scammers open accounts in other people’s names?

Creating an account under someone else’s name opens up a world of malicious possibilities. In some cases, the scammer’s goal might be obvious: They want to steal money by bouncing checks or overdrawing the account. More complex plans might include laundering money from illegal activities or hiding money to evade taxes.

The trouble is, a scammer could easily do this and you’d have no idea since this information doesn’t always hit your credit report.

Banks accused of opening fraudulent accounts 

Hackers in basements aren’t the only ones you should be worried about when it comes to accounts being opened in your name without your knowledge. Banks themselves have also been part of the problem.

Wells Fargo is the most egregious example: The bank paid a $3 billion fine for a scandal that involved opening millions of fake accounts in an attempt to reach sales goals. Bank of America also opened new credit card accounts without customers’ knowledge. U.S. Bank was fined by the Consumer Finance Protection Bureau for opening fake credit cards and deposit accounts under the names of unsuspecting consumers. 

How to check for bank accounts you didn’t sign up for

Is someone out there masquerading as you? Here’s how to find out:

Check your credit reports

You can request your credit report from each of the three credit bureaus for free once a week. It’s important to note these reports won’t necessarily include details of a new bank account. Savings and checking accounts in good standing don’t affect your credit report. If someone has overdrawn an account in your name or let unpaid fees pile up, that may be on the report.

Review your ChexSystems report

In addition to free credit reports, you’re also legally entitled to a free annual report from ChexSystems, a consumer reporting agency that collects information about your banking history. This includes activity on your checking accounts, savings accounts and money market accounts.

ChexSystems offers two reports: a consumer disclosure report, which includes details about any past negative behaviors and a consumer score report. Banks use this information when deciding whether to approve your account application, and you can use it to identify potentially fraudulent activity.

Review your online bank statements

Review your bank statements monthly, and if any transactions look suspicious, call your bank or credit union immediately. The sooner you alert them of fraud, the safer you’ll be. 

This will only help you spot fraudulent transactions on accounts of which you’re aware. Unless your email address or physical mailing address is used on an account a scammer opened, you may not receive statements for these accounts. 

What to do if you find a bank account in your name

If you discover a bank account you didn’t open with your name on it, here’s what you need to do:

Notify your bank or credit union

Call the financial institution that holds the account to alert them to the fraudulent account. You should also contact one of the three major credit reporting agencies — Equifax, Experian or TransUnion — to notify them. They will then alert the other two agencies.

Here’s how to report fraud to each agency:

Consider a credit freeze or fraud alert

If someone manages to open a bank account in your name, it’s important to stop them from opening any other accounts, like credit cards or loans. You can do this by setting up a fraud alert or credit freeze to warn all the major credit bureaus and banks about the increased potential for fraud associated with your name and Social Security number.

A fraud alert requires lenders and banks to contact you before approving any new loans or lines of credit. To file a fraud alert, you only need to contact one of the bureaus. A credit freeze is more serious and means no new loans or lines of credit can be opened in your name. This might be helpful if you need to prevent any new accounts from being opened while you assess your credit report. You must notify each of the three bureaus to create a credit freeze. 

File a police report

While your local law enforcement office isn’t likely to get involved in a case of identity theft, it’s helpful to have written documentation of the incident, particularly if you report the incident to the Federal Trade Commission.

Report identity theft to the FTC

Opening a fraudulent bank account is a form of identity theft, so you should also file a report with the Federal Trade Commission at IdentityTheft.gov. You should attach a copy of the police report when you file. The FTC will then provide you with a recovery plan to mitigate the damage to your finances.

Take an inventory of your entire digital life

If someone has your Social Security number, don’t be surprised if they also have your email address, social media handles and other private information. Change your passwords and enable two-step verification on all your accounts to provide an additional layer of security. 

How to prevent bank account fraud

Bank account fraud isn’t going away, and online thieves are becoming more sophisticated. Follow these steps to protect yourself from becoming a victim.

Create secure passwords

Using a simple, easy-to-guess password like “1234,” your last name, birthday or child’s name won’t cut it. Instead, experts recommend using a mix of upper- and lowercase letters, numbers and special characters and creating a different password for each website you use.

If you’re worried about remembering more complicated passwords, consider investing in an encrypted password manager.

Keep your information safe

Shred any documents that contain identifying information before trashing or recycling them. This includes monthly statements and offers for new credit cards and bank accounts. Keep physical documents in a locked safe or scan and upload them using secure cloud storage and password protection.

Also, be careful who you share your information with. Don’t give away your personal details to anyone who asks. Know how to identify a scam and only provide information to trusted sources through secure means.

Monitor your credit reports and bank account activity

Regularly reviewing your credit reports and bank statements can help you catch fraudulent activity sooner. You can request a credit report from each of the three credit bureaus each week, so make it a habit to check in on your credit a few times a year. Look for suspicious activity, like accounts you don’t recognize, and promptly alert the credit bureaus if you spot anything.

You can also set up alerts to notify you of large transactions but don’t rely solely on them. It’s important to review your statements regularly for any discrepancies. Fraudsters sometimes test how closely you monitor your accounts by making a few small charges.

Consider a credit monitoring service

If you want added peace of mind, you can pay for more protection from an identity theft protection or credit monitoring service. These services will generally run you around $100 each year, but some of them will alert you as soon as your info is on the dark web. If you have a credit card, you might have access to a credit monitoring service for free.