Bank fraud is on the rise — here are 4 ways to protect your account

Korin Miller
·5-min read

Yahoo Life, part of the Verizon Media family of brands, is committed to finding you the best products at the best prices. Some of the products written about here are offered in affiliation with Verizon Media. We may receive a share from purchases made via links on this page. Pricing and availability are subject to change.

Worried about bank account fraud? Here's how to protect yourself. (Photo: Getty)
Worried about bank account fraud? Here's how to protect yourself. (Photo: Getty)

One of the scariest things about internet fraud is knowing that someone could hack your bank account if they happen to get a hold of certain personal information. It's only natural, then, to wonder about how to protect your bank account from fraud.

Bank account fraud happens, and it can mean the difference between you keeping your hard-earned money and seeing it vanish. Bank fraud attacks increased 159 percent over the past year, according to an analysis of 12 billion global transactions over the past year by risk management platform Feedzai, making this a very real risk.

Luckily, you don't have to just hope you'll avoid getting scammed. Signing up for a password manager like LastPass Premium can help ensure that you create a strong enough password — and remember it — so that bank account fraud won't be an issue (but more on that later). Here's what you need to know about bank account scams and how to protect your account.

Try LastPass Premium, part of Yahoo Plus Secure, risk-free for 30 days.

What is bank account fraud?

Signing up for a password manager like LastPass Premium can help you avoid getting scammed. (Photo: Getty)
Signing up for a password manager like LastPass Premium can help you avoid getting scammed. (Photo: Getty)

At a basic level, banking scams involve someone attempting to access your account, according to USA.gov. That's generally broken into four categories:

  • Overpayment scams. This is when a scam artist sends you a counterfeit check. They then tell you to deposit it in your bank account and then wire part of the money back to them. The check is fake, and you'll have to pay your bank the amount — and you'll lose any money you wired.

  • Unsolicited check fraud. If you cash a check from a scammer that you received for no reason, you could be accidentally authorizing the purchase of goods or signing up for a loan you didn't ask for.

  • Automatic withdrawals. A scammer can create automatic debits from your account to qualify you for a free trial or to collect a prize.

  • Phishing. This is when a scam artist sends an email asking you to verify your bank account or debit card number.

If you use the same login across multiple accounts, it's also possible for a hacker to access your bank account if they happen to get your password from another site.

Password managers can help take the stress off of trying to remember multiple passwords. (Photo: Getty)
Password managers can help take the stress off of trying to remember multiple passwords. (Photo: Getty)

How to protect your bank account from fraud

Mikko Laaksonen, chief executive officer of Responsible Cyber, tells Yahoo Life that protecting your bank account from fraud can be "slightly overwhelming," adding: "You need to ensure that you can limit the risks of being compromised." There are a few things you can do, though, to protect your bank account from fraud.

Create a strong password

A strong password is vital to protecting your information, Joseph Steinberg, cybersecurity and emerging technologies advisor, tells Yahoo Life. "Do not share the password with anyone," he cautions.

Trying to memorize passwords for your personal email, social media, bank, and credit card accounts, not to mention your work accounts, is a little much. And, if you try to change them regularly, you risk forgetting your passwords. "Realistically, overly frequent changing of passwords, therefore, leads to people using weaker passwords, writing down passwords, and/or inappropriately reusing passwords," Steinberg says. "So, create strong, easy-to-remember passwords — not the complex ones that humans cannot remember – and commit them to memory."

His advice: Combine three or more unrelated words and proper nouns with numbers separating them. An example: “alicorn4louvre3chocolate.” "Such a password is far easier to remember than classic complex passwords such as '2zw4x&P!6q,'" Steinberg says.

Use a password manager

Having trouble creating stronger passwords or remembering them all if you do? A password manager like LastPass Premium can help you create unique passwords for every single account you have — from your credit card accounts to your email. This helps you bypass the general advice to change up your passwords regularly. "People living in the industrialized world of 2021 have far too many passwords to important accounts to change all of them on a regular basis and still commit the passwords to memory," Steinberg says.

The LastPass Premium password generator creates long, randomized and secure passwords to help guard against online security threats. It stores the passwords securely across all of your devices, so you don't have to remember your password.

Shop it: Try LastPass Premium, part of Yahoo Plus Secure, risk-free for 30 days, subscriptions.yahoo.com

Experts say that a strong password is vital to protecting your personal information online. (Photo: Getty)
Experts say that a strong password is vital to protecting your personal information online. (Photo: Getty)

Set up two-factor authentication

Two-factor authentication — also known as multi-factor authentication — is an extra layer of security to make sure that only you can access your accounts. To use it, you'll need to provide two or more pieces of information to get into an account. Two-factor authentication "should be set up everywhere on your accounts — LinkedIn, Hotmail, Yahoo, Gmail...wherever you have a login," Laaksonen says.

Use monitoring on your accounts

Many accounts let you set up monitoring and alerts, so that you'll be pinged if someone tries to access your information. Laaksonen recommends taking advantage of this feature. "If someone logs in, you will get notified," he says. That can help you act fast in the event that your information has been compromised.

Shop it: Try LastPass Premium, part of Yahoo Plus Secure, risk-free for 30 days, subscriptions.yahoo.com

Follow us on Instagram, Facebook, Twitter, and Pinterest for nonstop inspiration delivered fresh to your feed, every day

Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter.

Latest stories

  • What you should — and shouldn't — do if you win the Mega Millions jackpot, according to an expert

    There's still a chance for one lucky winner to score the Mega Millions jackpot. Here's what you should — and shouldn't do — with your winnings, according to an expert.

  • Reeves at risk of breaching spending rules she set just two months ago

    Rachel Reeves is at risk of breaking spending rules she set just two months ago as her record tax raid pushes up Britain’s borrowing costs and reignites inflation fears.

  • The Market Will Peak in 2025, Says One Seer. After That, Things Will Get Ugly.

    Felix Zulauf envisions a correction of about 15% in the S&P 500 index after the Santa Claus rally plays out in January. But that should set things up for a run to new highs later in the year.

  • If a savvy investor puts £700 a month into an ISA, here’s what they could have by 2030

    With regular ISA contributions and a sound investment strategy, one can potentially build up a lot of money over the long term. The post If a savvy investor puts £700 a month into an ISA, here’s what they could have by 2030 appeared first on The Motley Fool UK.

  • One FTSE 100 stock I plan to buy hand over fist in 2025

    With strong buy ratings and impressive growth, this FTSE 100 could soar in 2025. Here’s why Mark Hartley plans to invest in the stock long-term. The post One FTSE 100 stock I plan to buy hand over fist in 2025 appeared first on The Motley Fool UK.

  • 5 crucial Warren Buffett investing habits and a stock to consider buying now

    Here's a UK stock idea that looks like it's offering the kind of good value sought by US billionaire investor Warren Buffett. The post 5 crucial Warren Buffett investing habits and a stock to consider buying now appeared first on The Motley Fool UK.

  • As FTSE 100 shares sink, here’s one I think’s too cheap to ignore!

    With the FTSE 100 selling off, now could be a good time for savvy investors to go shopping for bargain shares, reckons Royston Wild. The post As FTSE 100 shares sink, here’s one I think’s too cheap to ignore! appeared first on The Motley Fool UK.

  • As analysts cut price targets for Lloyds shares, should I be greedy when others are fearful?

    As Citigroup and Goldman Sachs cut their price targets for Lloyds shares, Stephen Wright thinks the bank’s biggest long-term advantage is still intact. The post As analysts cut price targets for Lloyds shares, should I be greedy when others are fearful? appeared first on The Motley Fool UK.

  • Could the FTSE 100 hit 9,000 in 2025?

    The FTSE 100 has lagged other indexes over the last year. But some commentators believe 2025 could be a stellar year for our biggest companies. The post Could the FTSE 100 hit 9,000 in 2025? appeared first on The Motley Fool UK.

  • If a 40-year-old put £500 a month in a Stocks & Shares ISA, here’s what they could have by retirement

    Late to investing? Don't worry. Here's how a regular long-term investment in a Stocks and Shares ISA could generate huge returns. The post If a 40-year-old put £500 a month in a Stocks & Shares ISA, here’s what they could have by retirement appeared first on The Motley Fool UK.

  • Time to Downsize: How Can I Minimize Capital Gains Taxes on $750k Profit From My Home Sale?

    Suppose you sell your primary home and make a $750,000 profit. Will you owe capital gains tax on that profit? The short answer is yes. Depending on a handful of factors, you may owe tens of thousands of dollars to over a hundred thousand dollars. Your exact tax liability could vary drastically, so knowing what […] The post I’m Selling My Home and Netting $750k to Downsize for Retirement. Do I Have to Pay Capital Gains Taxes? appeared first on SmartReads by SmartAsset.

  • UK Stocks Investors May Be Undervaluing By Up To 25.4%

    The United Kingdom's FTSE 100 index has recently experienced downward pressure, largely influenced by weak trade data from China and its impact on global markets. In such a challenging environment, identifying undervalued stocks can be crucial for investors seeking opportunities, as these stocks may offer potential value despite broader market volatility.

  • The Marvell (MRVL) Pivot: Why Now Is the Time to Invest

    Marvell Technology is being touted as the third largest AI chipmaker after Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO). To give readers a context of what the company does, here’s how it stands in comparison to the two competitors. Nvidia makes standard GPUs that all AI applications need to run on. These GPUs are general purpose and […]

  • Here’s how an investor could use £10 a day to target a £2,348 second income

    For just a tenner a day, our writer illustrates how an investor could build a four-figure annual second income over the coming decade. The post Here’s how an investor could use £10 a day to target a £2,348 second income appeared first on The Motley Fool UK.

  • Why Palantir Technologies (PLTR) Is Skyrocketing

    We recently compiled a list of the Why These 10 Stocks Are Skyrocketing. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against the other stocks that are skyrocketing. Wall Street saw a quiet trading session this week amid the lack of major catalysts to perk up […]

  • Is British American Tobacco p.l.c. (BTI) the Best Dividend Stock to Buy Under $50?

    We recently compiled a list of the 13 Best Dividend Stocks to Buy Under $50. In this article, we are going to take a look at where British American Tobacco p.l.c. (NYSE:BTI) stands against the other dividend stocks. AI stocks are stealing the spotlight today as the appetite for these services continues to gain traction globally. […]

  • The Property Brothers Fear Trump's Tariffs Could Send Construction Costs Soaring

    HGTV home renovation stars Jonathan and Drew Scott – best known as the Property Brothers – are fearful that Trump’s proposed tariffs could send construction costs soaring. The brothers' native Canada, along with Mexico, has been in the President-elect’s tariff crosshairs, threatening that if both countries don’t stop the flow of migrants and drugs into the U.S., they will be hit economically through trade tariffs. “Jonathan and I love the idea of domestic-made products,” real estate agent Drew S

  • 2 legendary FTSE 250 shares I won’t touch with a bargepole in 2025

    Roland Head looks at two household names and explains why these FTSE 250 shares are already on his list of stocks to avoid in 2025. The post 2 legendary FTSE 250 shares I won’t touch with a bargepole in 2025 appeared first on The Motley Fool UK.

  • Microsoft Invested Nearly $14 Billion In OpenAI But Now Its Reducing Its Dependence On The ChatGPT-Parent: Report

    Microsoft Corporation (NASDAQ:MSFT) is reportedly planning to reduce its dependence on ChatGPT-maker OpenAI. What Happened: Microsoft has been working on integrating internal and third-party artificial intelligence models into its AI product, Microsoft 365 Copilot, reported Reuters, citing sources familiar with the effort. This move is a strategic step to diversify from the current underlying technology of OpenAI and reduce costs. The Satya Nadella-led company is also decreasing 365 Copilot’s de

  • ASML Is Europe’s No. 2 Tech Company. Shares Look Appealing, Too.

    Few companies are more critical to the semiconductor industry than ASML. ASML has virtually no competition in its high-end EUV machines, which use extreme ultraviolet light, and that has made it Europe’s No. 2 tech company—behind only Germany’s SAP.