• Banks use a combination of safeguards to protect your information, such as employee training, strict privacy policies, rigorous security standards, and encryption systems. Many banks have special fraud detection software to help flag ID theft. This software constantly monitors accounts for suspicious activity – often identifying fraud and notifying customers before they are aware of the problem.
• Bank customers are protected from loss. Most bank-related incidents of ID theft limit customer liability to $50 of unauthorized charges, and many lenders will even waive that. Still, restoring your identity can be a huge inconvenience, so it’s important to take precautions to avoid becoming a victim (see Customer Tips below).
• A 2006 ABA survey found 66 percent of consumers identified banks as the most trustworthy with their personal information, followed by government agencies in a distant second place with 11 percent. Retailers and data brokers garnered 3 percent and 2 percent, respectively. Seven percent of customers couldn’t decide.
• Despite several high-profile data-breach cases in 2006, only a minority of banks reported check fraud losses from ID. On average, 4 percent of large banks and 31 percent of community banks of check-related losses were due to ID theft, according to the ABA Deposit Account Fraud Survey (2007).
• Most ID theft takes place offline. ID thieves rely on paper documents by invading mailboxes, glove compartments and trash cans to steal and misuse information. According to a 2009 survey by Javelin Strategy and Research, information breaches occurred in the following categories: 43 percent from lost or stolen wallets, credit/debit cards or checkbooks; 19 percent while conducting a transaction; 13 percent from friends, family, in-home employees and neighbors; 11 percent from home computers (hacking, viruses or phishing); 11 percent from data breaches; and 3 percent from stolen paper mail.
• Businesses, consumers and law enforcement all have vital roles and responsibilities in combating ID theft. We must work together to solve the problem.

If a customer becomes the victim of ID theft, the bank is there to help

• Once contacted, banks immediately take action by closing accounts when appropriate and beginning an investigation.
• Most banks have special 800 numbers and Web sites devoted to helping victims of identity theft.
• Many banks offer special worksheets, phone numbers and standardized affidavits to send to other businesses that may need to be contacted. This special affidavit is available from the Federal Trade Commission at www.consumer.gov/idtheft.

Consumer tips to avoid becoming a victim

• Don’t give your Social Security number or other personal credit information about yourself to anyone who contracts you.
• Tear up receipts, bank statements and unused credit card offers before throwing them away.
• Keep an eye out for any missing mail.
• Don’t mail bills from your own mailbox with the flag up.
• Review your monthly accounts regularly for any unauthorized charges.
• Go online to review your account as often as you’d like.
• Order copies of your credit report once a year to ensure accuracy.
• Choose to do business with companies you know are reputable, particularly online.
• When conducting business online, make sure your browser’s padlock or key icon is active.
• Don’t open email from unknown sources and use virus detection software.
• Protect your PINs (don’t carry them in your wallet!) and passwords; use a combination of letters and numbers for your passwords and change them periodically.
• Report any suspected fraud to your bank and the fraud units of the three credit reporting agencies immediately. The fraud unit numbers are:
              TransUnion (800) 680-7289
              Experian (888) 397-3742
              Equifax (800) 525-6285