Whether you're buying groceries, paying rent, or shopping online, your bank account plays a central role in managing your transactions every day. But while digital banking offers speed and convenience, it also puts you at greater risk of online scams and cyberattacks.

According to a report by the Federal Trade Commission (FTC), bank transfers and payments led to the highest reported losses in 2023, totaling about $1.86 billion^[1]. Without strong protection measures in place, a single slip could expose your finances and identity.

In this guide, we’ll break down the most common threats to your bank account and the strategies to help you strengthen your bank account security. We’ll also explore how virtual cards can add an extra layer of protection when paying online and help you minimize the risk of fraud.

Why Does Bank Account Fraud Protection Matter?

Effective bank account security helps you stay one step ahead of various kinds of threats, including:

Warning Signs That Your Bank Account Security Is Compromised

When your bank account information is compromised, spotting red flags early can make all the difference in limiting the damage. Look out for these warning signs:

• Unfamiliar transactions or withdrawals—These could include unexpected ATM withdrawals, debit card purchases at odd locations, or strange charges on linked credit cards.
• Unexpected notifications or password reset requests—If you receive an email or text saying “Your password was changed” or “New device login detected,” and you didn’t make these changes, it’s safe to assume someone else might be trying to access your account.
• Problems logging in—If your correct credentials suddenly stop working, or your account is locked after too many failed attempts, it could indicate someone was trying to brute-force access.
• Unknown accounts or cards opened in your name—If you start receiving mail about credit cards or loans you didn’t apply for, it could mean someone is impersonating you.
• Contact from the bank’s fraud department—If you get a call, email, or text from your bank asking you to confirm a purchase or notifying you of suspicious activity, take it seriously. But remember that a real fraud department won’t ask you to share your full PIN or password over the phone—if they do, it’s likely fraud.

What To Do if You Suspect Your Bank Account Has Been Hacked

If you suspect that your bank account is under attack, you need to act quickly to secure your funds and personal information. Here’s what to do:

1. Contact your bank immediately—Notify your bank’s fraud department or customer service right away. They may freeze your account or disable online services until the issue is resolved.
2. Change your passwords—The FTC explicitly recommends that if you gave a scammer your username or password, you create a new, strong password for that and any other account with that same password^[2].
3. Report the fraud to the authorities—File a complaint with the FTC’s dedicated portal, and if online crime was involved, with the FBI’s Internet Crime Complaint Center (IC3). You may also want to file a police report if required for your bank’s investigation.
4. Dispute any unauthorized charges—Report any transactions you didn’t authorize to your bank. Thanks to the Fair Credit Billing Act (FCBA)^[3] and the Electronic Fund Transfer Act (EFTA)^[4], prompt reporting can help limit your liability.

How Can You Protect Your Bank Account From Fraud?

It’s easier to prevent fraud than fix the damage later, and a few smart precautions and good habits can go a long way. Here are some practical tips to strengthen your bank account security:

1. Use strong and unique passwords 
2. Use multi-factor authentication
3. Use safe mobile banking practices
4. Use fraud protection services in banking
5. Use virtual cards for online payments

Use Strong and Unique Passwords

Create a strong banking password with at least 10–12 characters, mixing uppercase and lowercase letters, numbers, and symbols. Also, it’s a good practice to avoid words that are commonly used in day-to-day life and personal info like names or birthdates^[5]. For example, “Flamingo!7&Cloud90” is a far stronger password than “John1985.”

Still, even a strong password is vulnerable if you use it on multiple sites​. Many bank hacks happen through credential stuffing, where stolen passwords from other breaches are reused. This is why creating a unique password for each account is a common best practice to limit your fraud risk^[6].

Remembering dozens of passwords is unrealistic, especially if they’re as complex as they should be. Password managers like Bitwarden or 1Password can help by generating strong passwords and securely storing them for you.

Use Multi-Factor Authentication

Multi-factor authentication (MFA) adds an extra layer of protection by requiring two or more types of credential checks before you can access your account. This makes it much harder for scammers to break in, even if they’ve stolen your username and password.

The additional credentials typically fall into one of three categories:

• Something you know—A passcode, PIN, or an answer to a security question
• Something you have—A one-time verification code sent via text, email, or generated by an authenticator app, or a physical security key
• Something that confirms who you are—A fingerprint check, facial recognition, or retina scan

Whenever possible, set up multi-factor authentication on both your online banking portal and your bank's mobile app.

Use Safe Mobile Banking Practices

Mobile banking offers great convenience, but it also comes with extra security considerations:

• Download apps only from official app stores—It’s a common guideline in mobile security to only install apps from your device’s native app store (Apple App Store for iPhones or Google Play Store for Android)^[7]. These marketplaces have vetting processes to remove known fakes (while third-party sites might host lookalike apps that contain malware).
• Keep apps updated—Banking app updates often fix security flaws. Enable auto-updates or check manually for new versions.
• Update your device OS—Install iOS or Android updates promptly to patch system vulnerabilities.
• Use secure networks—Avoid public WiFi for banking. If you must use it, encrypt your connection with a VPN.
• Enable your phone’s security features—Lock your phone with a PIN, password, or biometrics, and set up remote wipe tools like Find My iPhone or Find My Device.

Use Fraud Protection Services in Banking

Banks don’t leave customers to fend for themselves—they offer tools and services specifically to combat fraud. Make sure you’re taking full advantage of these built-in protections:

• Custom alerts—Many banks allow you to customize alerts via text, email, or push notifications. For example, Bank of America lets you set up alerts for activities like low balances, deposits, large withdrawals, upcoming payments due, and more^[8].
• Card controls—Many banks like Chase now include card control features in their apps^[9]. These let you instantly lock your debit or credit card if it’s lost, as well as set spending limits or restrictions.
• Insurance or guarantees—Some premium checking accounts offer reimbursement for expenses related to fraud or identity theft, such as notary fees, legal costs, or lost wages from time spent resolving issues. For example, CNB Bank’s Checking Plus account includes up to $25,000 in Identity Theft Expense Reimbursement Insurance, covering costs like attorney fees, postage, notarization, and even lost wages during identity recovery^[10].

Use Virtual Cards for Online Payments

Entering your debit or credit card online always carries a risk, whether due to breaches, hacked sites, or dishonest merchants. One way to ensure security is to pay with tap-to-pay, Apple Pay, or trusted mobile wallets that use tokenized payment information. Another smart way to protect your bank account is to shield your card number by using virtual cards for online shopping.

A virtual card comes with a random 16-digit number linked to your account, so merchants and hackers only see the virtual number, not your actual card details.

While banks like Citi and Capital One offer virtual cards, a dedicated provider like Privacy gives you more flexibility and control. With Privacy, you can create and manage virtual cards easily without opening a new bank account—just link it to your existing one.

Privacy Virtual Cards: Protect Your Bank Information and Pay Smartly

Privacy is a BBB-accredited virtual card provider trusted by over 250,000 Americans. After securely linking your bank account or debit card, you can easily create virtual cards customized to your spending habits and preferences.

Here’s a quick look at the three types of Privacy Virtual Cards available:

Features That Make Privacy Cards Secure

Privacy Virtual Cards offer advanced protection beyond hiding your payment details. Here’s how they help safeguard your account and personal information:

• Two-factor authentication (2FA)—Before you can access your Privacy account, you’ll need to verify your identity with a second step beyond your password.
• End-to-end encryption—Privacy uses industry-leading encryption protocols (TLS, IPsec, and AES-256) to protect your data both in transit and at rest.
• Secure data storage—Your information is stored on servers located in multiple regions and shielded by strict firewalls. These servers aren’t publicly available, and Privacy never stores your bank login credentials.
• Fraud protection—If any unauthorized charges happen, Privacy makes it simple to dispute them, providing fast, dedicated support to resolve the issue and protect your money.

Features That Give You More Control With Privacy Virtual Cards

Privacy offers features designed to put you firmly in control of how, when, and where you spend. Here’s what you can do with Privacy:

• Set spending limits to protect against overbilling, duplicate charges, or hidden fees, and Privacy will decline charges exceeding the limit.
• Pause or close cards instantly to block unwanted charges—perfect for managing subscription cancellations and trial offers.
• Autofill your card details at checkout using the Privacy Browser Extension (available for Firefox, Edge, Chrome, Safari, and Safari for iOS).
• Stay in control on the go with the Privacy mobile app for Android or iOS.
• Get real-time notifications for every charge or decline, so you can spot suspicious activity immediately.
• Add custom notes to each card (like the merchant name or next billing date) for easier budgeting and organization.
• Integrate with 1Password to securely store and manage your Privacy Cards alongside your logins.

How To Get Started With Privacy in Just a Few Steps

Getting your Privacy Card is quick and easy, as long as you meet a few basic requirements. You must be a U.S. resident at least 18 years old and have a valid checking account with a U.S. bank or credit union.

If you meet the criteria, here’s how to get started:

1. Sign up for a Privacy account.
2. Verify your identity by submitting standard Know Your Customer (KYC) information.
3. Link a funding source, such as your bank account or debit card.
4. Create your first Privacy Virtual Card and start using it online.

Privacy offers four monthly plans designed to match different usage styles and security needs. Explore your options below:

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The Personal plan gives you free access to core Privacy features for domestic transactions, including Single-Use and Merchant-Locked Cards, card controls, and easy management through the mobile app and browser extension.

For more flexibility, advanced controls, or international support, you can upgrade to the Plus, Pro, or Premium plans, which unlock additional features like:

• Category-Locked Cards for even greater spending control
• Zero-fee international transactions
• Shared Cards to securely share card access with trusted friends and family members
• Custom Card Notes to track and organize spending
• Priority support and Live Chat, available Monday through Friday, 9 a.m. to 5 p.m. ET
• 1% cashback on eligible purchases (up to $4,500 in spending per month)

References

^[1]Federal Trade Commission. https://www.ftc.gov/system/files/ftc_gov/pdf/CSN-Annual-Data-Book-2023.pdf, sourced April 29, 2025

^[2]Federal Trade Commission. https://consumer.ftc.gov/articles/what-do-if-you-were-scammed#PI, sourced April 29, 2025

^[3]GovInfo. https://www.govinfo.gov/content/pkg/GOVPUB-FT-PURL-LPS73998/pdf/GOVPUB-FT-PURL-LPS73998.pdf, sourced May 5, 2025

^[4]Federal Reserve. https://www.federalreserve.gov/boarddocs/caletters/2008/0807/08-07_attachment.pdf, sourced May 5, 2025

^[5]Kaspersky. https://www.kaspersky.com/resource-center/threats/how-to-create-a-strong-password, sourced May 5, 2025

^[6]Federal Trade Commission. https://consumer.ftc.gov/consumer-alerts/2018/03/its-national-password-day, sourced May 5, 2025

^[7]Norton. https://us.norton.com/blog/how-to/is-mobile-banking-safe, sourced April 29, 2025

^[8]Bank of America. https://info.bankofamerica.com/en/digital-banking/how-to/online-banking-alerts-demo, sourced April 29, 2025

^[9]Chase. https://www.chase.com/digital/customer-service/helpful-tips/credit-cards/mobile/lock-unlock-card, sourced April 29, 2025

^[10]CNB Bank. https://cnbbank.bank/personal-banking/checking/checking-plus-account, sourced April 29, 2025

^[11]Consumer Finance. https://files.consumerfinance.gov/f/documents/cfpb_know_your_overdraft_options-handout.pdf, sourced May 5, 2025

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