Red Flags on Bank Statements: Make Checking a Habit!

You work hard for your money, protect it at all cost. Check you bank account regularly.

4 Red Flags on Bank Statements. (Photo: Google)

How frequently do you examine your bank account statements? Watch out for these 4 red flags on bank statements the next time you review your account. 

As indicated by a survey by GOBankingRates in August 2023, 56% of Americans scrutinize their account statements monthly to detect any unusual transactions. In addition to gaining insights into your financial patterns, going through account statements provides an opportunity to identify and address any questionable activities in your account. Here are the 4 red flags on bank statements that you need to watch out for.

Large, Unknown Deposits

Have you noticed any red flags on your bank statements, such as unexplained substantial deposits?

If you receive a sizable deposit without recognizing the source, contact your bank to report it – a potential red flag on bank statements. Your bank may be addressing it, but if not, it’s important to inform them about this possible red flag on your bank statement.

Avoid using this money in any way. Refrain from spending, transferring, or investing it. SoFi warns that not returning erroneously deposited funds, which could raise red flags on bank statements, could be considered theft and might lead to criminal charges linked to these red flags on your bank statement.

Super Small Deposits

Do you spot any unfamiliar small deposits, ranging from 20 cents to $10? These could be warning signs of potential security breaches, indicating red flags on bank statements.

State Savings Bank advises staying vigilant about transactions under $1, which could be potential red flags on bank statements. This might suggest unauthorized access linked to criminal intent. Scammers often use such minor transactions as trial runs.  Account holders should monitor these smaller activities with the same scrutiny applied to larger ones, addressing any red flags on bank statements that may emerge.

Charges for Canceled Services

Another red flags on bank statements that you need to know. Notice any small, unfamiliar deposits, like 20 cents to $10? These might hint at security breaches, indicating potential red flags on bank statements. Be alert to transactions under $1 as well; they could signify unauthorized access linked to criminal intent. Scammers often use these small transactions as tests. Scrutinize these smaller activities as much as larger ones to catch any emerging red flags on bank statements.

Duplicate Transactions

For those who frequently utilize their debit card, there could be instances when scrutinizing their bank statement reveals duplicate transactions, potentially indicating red flags on bank statements.

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Rising Scam Threats: Safeguarding Your Bank Account with Red Flag Awareness on Statements

Scam cases surged with over 40,000 reports to the Better Business Bureau in 2022, resulting in a median loss of $171, according to the BBB Scam Tracker Risk Report.

Many scams are now targeting bank accounts. Unlike credit card fraud, where federal law limits liability, bank scams—such as depositing fake checks and forwarding money to scammers—make individuals accountable for deposited amounts. Liz Cackowski, a certified financial crimes investigator and senior fraud investigator at Republic Bank, emphasizes this responsibility.

However, you can protect yourself and your bank account by recognizing red flags on bank statements.

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