Wrongful Credit Damage, Identity Theft and Debt Collection Abuse Blog

I am frequently asked whether online banking is safer than traditional banking or banking-by-mail. The answer is: the jury is still out. There are identity theft opportunities regardless of how you bank.

Suzanna Montezemolo, a policy analyst for Consumers Union, correctly states the situation: “Consumers can do everythign right–not give out passwords or financial information–and still become victims” of identity theft. Sophisticated fraudsters have found ways to stay a half-step ahead of even the most secure online precautions. Also, as discussed in some of my other blog entries, the financial industry has bought & sold identities for so long, as a commodity, that no one out there knows just how far one’s personal identifying information has been spread about. It would be almost impossible to track. And no one knows what security precautions are being taken at the many places where some or all of your personal information is now residing.

So, my recommendation? I tend to avoid online banking but I have also learned to be very careful with my checks and my transactions. But, if you need to on-line bank, I would select the bank with the best and most up-to-date security precautions. This will mean some additional added hassle for you, but if it avoids an identity theft, it’s worth the trouble.

Thanks for reading.