Why your checking account number is important and how to protect it

You likely already know that your social security number and PIN (personal identification number) are sensitive data you should keep safe and secure. But did you know your checking account number is also important and requires protection?

From receiving direct deposits to paying bills and making transfers, your checking account number plays a key role in several important financial activities. Protecting this number from unauthorized access is essential, as its exposure could lead to fraud, financial loss and even identity theft.

Read on to learn why your checking account number is important and how to safeguard it.

What you’ll learn

• The role of your checking account number
• Why your checking account number is a high-value target for fraud
• Common threats to your checking account number
• Effective strategies for protecting your checking account number
• What to do if your checking account number is stolen
• Your checking account number: Small detail, big impact

The role of your checking account number

Checking account numbers aren't just random strings of digits, they're unique sets of numbers assigned to each account holder. Along with your credit union or bank's routing number, they let financial institutions identify and process transactions linked to your account. Here's what your account number does.

• Unique identifier: Your account number is like your account's ID, helping your credit union or bank track your specific account for each transaction. Without it, distinguishing millions of accounts would be nearly impossible.
• Transaction facilitation: Whenever you set up an ACH transfer, wire money or automate bill payments, your account number helps ensure the funds go to and from the right place.
• Cross-bank transfers: When you're moving money between credit union or banks, your checking account number works with the routing number (which identifies the financial institution) to make sure your money lands where it should.
• Global transfers: For international banking, your account number might be an IBAN (International Bank Account Number), which helps make cross-border transactions accurate.

Why your checking account number is a high-value target for fraud

Your checking account number might seem like a trivial detail, but to cybercriminals and fraudsters, it's a potential goldmine. They can use it in conjunction with other information to try and access your financial accounts and make unauthorized transactions, taking your money before you even notice. In some cases, scammers might even set up recurring payments or big one-time transactions, quickly draining your balance and leaving you in a vulnerable position.

But that's not all, fraudsters can also use your checking account number to try and steal your personal info, possibly leading to identity theft that can cause problems for years. They might open credit accounts, take out loans and commit other financial frauds that seriously mess with your credit score and financial stability.

Common threats to your checking account number

As with any sensitive information, there are various scams and tricks criminals use to try and get their hands on your checking account number. Some common tactics include:

• Phishing scams. Scammers send fake emails, texts or make calls pretending to be from trusted places, asking for your account number or other personal information.
• Data breaches. When companies or institutions get hacked, your personal details, including account numbers, might get leaked and sold on the dark web.
• Malware attacks. Sneaky malicious software on your devices can grab sensitive data like account numbers when you log into online banking.
• Compromised physical documents. Paper statements, checks or even tossed receipts can be stolen or collected and used to access your accounts.

Effective strategies for protecting your checking account number

Keeping your checking account number secure is a critical step in protecting your financial health. Fraudsters continuously evolve their methods, making it essential for you to adopt safe practices. Here are several best practices for keeping your checking account number safe and secure.

• Don't share over unsecured channels: Never give out your checking account number through unsecured methods like email, phone calls or texts. If you need to share your account information, make sure the communication is encrypted or through a verified secure platform.
• Keep your online habits secure: Regularly update your online banking passwords and make sure they have strong security with a minimum of 16 characters that are a mix of letters, numbers and symbols. Consider enabling biometric and two-factor authentication (2FA) for extra security. Also, always remember to log out of your online banking sessions and avoid logging in over public Wi-Fi, which is more vulnerable to hacks.
• Check your accounts regularly: Keep an eye on your account statements for any unusual or unauthorized transactions to catch things early and stop fraud before it gets worse. Checking your credit report will help spot any changes or new accounts opened in your name.
• Set up fraud alerts: Most credit unions or banks let you set up fraud alerts that notify you of suspicious transactions. These alerts can give you real-time updates and help stop unauthorized withdrawals or transfers before a fraudster’s actions cause big problems. For example, with Alliant, you can easily set up alerts for debit and checking purchases, withdrawals, account balance changes, NSF (non-sufficient funds) fees, and more.
• Shred sensitive documents: Shred physical documents like checks, account statements or receipts before throwing them away to stop fraudsters from getting your account details. Alternatively, go for paperless statements and use a password-protected digital storage system for important documents.
• Use virtual account numbers for online shopping: Some financial institutions and credit card companies let you use virtual account numbers for online purchases. This creates a temporary number linked to your real account, lowering the risk of theft during an online purchase.

What to do if your checking account number is stolen

Even with precautions, your checking account number could still become compromised. Here's a step-by-step guide on what to do if your checking account number is stolen.

• Tell your credit union or bank right away: Report the incident to your financial institution ASAP. They can temporarily freeze your account to stop unauthorized transactions and help you open a new account if needed.
• File a police report: Creating an official police report helps with any disputes about fraudulent activity, giving you documented proof of the theft.
• Add a fraud alert to your credit file: Contact a credit reporting agency to place a fraud alert on your file. This tells lenders to take extra verification steps if someone tries to open new credit accounts in your name.
• Freeze your credit: To prevent more problems, consider freezing your credit. A credit freeze makes sure no one can open new credit lines or loans in your name while it's active.
• Keep an eye out for ongoing fraud: Keep checking your account and credit report for any suspicious activity that may pop up after the initial fraud is found. Set up real-time alerts for all new transactions to watch for unauthorized activities.
• File a report at IdentityTheft.gov: IdentityTheft.gov is a federal government website that helps people report and recover from identity theft.

Your checking account number: Small detail, big impact

As identity theft becomes increasingly sophisticated, criminals are constantly finding new ways to steal personal and financial information. If your checking account number is compromised, the repercussions can extend far beyond unauthorized transactions, potentially leading to long-term financial damage like diminished credit scores and even legal battles to restore your identity. By being proactive—whether through securing your online practices, regularly monitoring your accounts or setting up fraud alerts—you can protect yourself from costly and time-consuming fraud.

Choosing a financial institution that shares your dedication to security is equally important. Alliant Credit Union takes extensive measures to safeguard your personal and financial data, utilizing cutting-edge encryption, continuous account monitoring and real-time fraud alerts to detect and prevent unauthorized activity. With Alliant, you can bank with confidence, knowing your sensitive information is in safe hands.