If you believe that no bank account is entirely secure from scams today, you’re not alone in your concerns.

According to J.D. Power, a consumer analytics company, about 30% of banking customers faced fraudulent activity within the last year.

Some victims sent funds to fraudsters using payment apps, while others noticed unauthorized purchases in their statements, or had funds taken from their accounts.

J.D. Power analysts observed that fraud is increasing in an age dominated by peer-to-peer (P2P) payment applications and increasingly detached transactions.

“Most consumers wouldn’t hand $100 to a stranger, yet that’s similar to how P2P payments operate,” explained Jennifer White, senior director of banking and payment intelligence at J.D. Power.

Data breaches, such as the major National Public Data breach, allow scammers access to billions of Social Security numbers and other personal data. This can lead them to call customers while pretending to be from their bank, using enough information to seem credible.

“It’s simple to be tricked because they possess a lot of your private information,” offered Paul Benda, executive VP for risk, fraud, and cybersecurity at the American Bankers Association.

‘Fraud isn’t a one-time event’

The study revealed that 29% of bank clients encountered fraud over the last year. Among these victims, 45% experienced multiple fraud incidents.

“This isn’t just a rare occurrence,” White commented.

Individuals younger than 40 are disproportionately affected by bank fraud.

This may seem surprising given that younger individuals are generally very tech-savvy, White noted. However, their frequent use of payment apps can make them more vulnerable.

The study also highlighted two noteworthy trends among American bank customers: a strong preference for efficient fraud resolution by their bank and a lack of personal account protection efforts.

A significant 92% of bank clients expressed they would likely continue using their bank after it successfully resolved a fraud issue.

Most fraud sufferers maintained a positive view of their bank post-incident, with only 17% reporting a negative impression.

Customers feel particularly pleased when their bank takes the initiative to detect and rectify fraud.

Bank officials echoed this sentiment.

“Clients are incredibly satisfied when we can prevent fraud or recoup their funds,” stated Jennifer Ehresman, head of consumer client protection at Bank of America.

The study was based on feedback from over 20,000 banking and credit card customers.

Banking customers often neglect their own account security

The survey suggests that banks may be more proactive in tackling fraud than their clients realize.

<p“Every year, banks invest billions in security measures to protect your accounts,” noted Benda.

Close to half, or 46%, of bank customers in the J.D. Power research stated that their bank had encouraged them to adopt fraud prevention strategies recently.

Despite this, many customers fail to take necessary precautions. About 25% indicated they had taken no action to secure their accounts in the last three months. Among those who did, the most common step was reviewing recent transactions for unusual activity.

While this is a better step than nothing, banking experts point out that this approach is reactive rather than preventive and doesn’t actively safeguard your account.

With scammers becoming increasingly savvy, protecting yourself can feel more challenging than ever. Here are some tips for bank customers to enhance their account security.

Check your security center

According to White, a security center is “a place within the app where you can access all your security settings conveniently.”

Most major banks provide security centers. Some even offer guidance on how to secure your account effectively.

Manage Your Passwords

Create strong passwords that aren’t easily guessed: Avoid using personal details like your birthday or your pet’s name. Refrain from reusing passwords across different accounts and make sure to update them regularly.

Many people rely on password managers, which are tools designed to generate robust passwords and keep them safe.

If you receive a notification indicating that your password was involved in a security breach, it’s essential to create a new one immediately.

Set Up Alerts

Your bank likely has an alerts feature, allowing you to receive notifications via text or email if your password or contact details change.

Account alerts can inform you of withdrawals, denied transactions, or any activity surpassing a specified dollar amount.

Beyond Passwords

Numerous financial institutions now implement two-factor authentication to verify your identity further.

This often involves receiving a unique numerical code on your phone when attempting to log in, providing an extra layer of security against password theft.

More institutions are also adopting biometric measures, such as fingerprint and facial recognition technology, to ensure it’s really you accessing your account.

These methods “might take slightly more time,” as noted by J.D. Power, “but the added security is definitely worth it.”

Update Your App

Ensure that your banking app on your smartphone is always updated to the latest version. Most apps will notify you when an update is available.

Go Paperless

Opting for paperless communication saves time and is considered safer by security experts, as it eliminates any tangible evidence that could be exploited by criminals.

Protect Your Smartphone

“Handle your phone with caution,” advised Ashwin Raghu, director and head of innovation and scam policy at Citi. “Your phone essentially acts as the gateway to your life.”

Raghu emphasized that you should not share your phone with others, and avoid leaving it unattended and unlocked where it can be accessed by anyone.

When making a purchase using a payment app, complete the transaction on your own device without handing your phone to the seller.

Stay Alert for the Unexpected

Exercise caution when responding to emails, calls, or texts that claim to originate from your bank. The American Bankers Association highlights five warning signs:

• A message that contains an unexpected link
• Urgent or alarming language
• Attachments of any kind
• Requests for personal information, such as PINs or passwords
• Pressure to send money via an app.

“If it’s something you weren’t expecting,” Ehresman advised, “do not click on it.”