Did you know that approximately one-third of American adults, which equals 34% of the population, experienced financial fraud or a scam during the 12 months that ended in March 2025? Almost 40% of these victims suffered financial losses.

Alloy.com reports that enterprise banks experienced the highest increase in fraud incidents. Almost 70% of them observed higher fraud rates over the last twelve months. Bank fraud has become a major problem for today’s digital financial sector which connects people and organizations and banking institutions.

According to federal bank fraud lawyer Barry M. Wax, the Federal Bureau of Investigation will investigate all bank fraud cases that involve fraudulent activities occurring inside a financial institution.

Let’s find out what you can anticipate once you undergo a bank fraud investigation.

Understanding Bank Fraud: Definition and Types

When considering bank fraud, it is necessary to know its real definition and the different forms it might take. Bank fraud is a practice that uses various methods to deceive the financial institutions so that they either give out money or disclose confidential financial data.

One type of bank fraud is check fraud. This crime refers to what happens when criminals create fake checks through the forgery of account holder names and alterations of check amounts. Credit card fraud occurs when thieves make unauthorized online purchases using stolen credit card information. Scammers use account takeover fraud to get into your bank account without your permission and steal your money by moving it to their accounts. 

People can protect their money by learning about all potential threats and studying various protective methods. Understanding bank fraud operations allows you to create effective protection strategies against future scams.

Common Signs of Bank Fraud

Noticing the signs of bank fraud right away may prevent considerable financial loss. When you suspect fraud, a white-collar crimes lawyer will guide you through your legal options and protect your rights. You should examine your statements for unanticipated charges since these charges might show that transactions were made without your permission.

If your bank rings you up regarding suspicious transactions that you didn’t start, do not take it lightly. Watch out for sudden changes to your account balance or withdrawals that you cannot explain.

Take the necessary precautions in case you come across new credit cards or checks that you have not asked for. Unfamiliar accounts connected to your profile should be treated as warning signs. You should monitor for any strange emails and phone calls that try to obtain your personal information. Your financial protection depends on your ability to detect these warning signs.

How to Report Suspected Bank Fraud

If you suspect you may be a victim of bank fraud, it’s important to take immediate action. Your bank should be contacted right away. Tell them about your worries and show them any proof you might have. A bank has its division that focuses on fraud cases. This department will be very helpful to your case.

You may also report the fraud to the Federal Trade Commission (FTC) at IdentityTheft.gov. They will take you through reporting and also help you with a recovery plan. You can submit a report to your local police department. The report needs to contain evidence that supports your case and assists law enforcement in their investigations.

You should monitor your accounts for any suspicious activities that may require your immediate attention. You should try implementing a fraud alert or a credit freeze with all major credit reporting agencies as your next step to enhance your security measures.

The Investigation Process: What to Expect

Bank fraud investigations can take a while, but reporting it sooner usually gets a faster response from the bank. The bank will collect evidence which can consist of communication, transaction records, and the findings from their investigations. They might even ask for your input, so do your best to stay neat and keep everything in order.

The bank will investigate carefully and thoroughly. They might involve the police if they find it necessary. It would be better that you talked to the bank regularly so you would know the progress of the case. If there is a question that you want to ask, feel free to do so.

You may be required to update your account and be extra careful with your financial statements. During this entire period of time, you can safeguard your money and make the resolution process a bit easier by being proactive.

Your Rights as a Victim of Bank Fraud

It is your bank’s policy that in case fraud happens to your account, they will be conducting an investigation, and you will be informed of your rights as a victim. You have the right to report fraud and expect immediate actions by your bank. The bank should update you on the progress of the investigation and on any findings. You have a right to access the records of fraud for transparency purposes.

If your account is hacked, you can demand prompt assistance in recovering your money. You have the right to challenge unauthorized transactions and safeguard your credit. Don’t hold back from asking questions or requesting help from the fraud department of your bank. 

Knowing your rights will help you get the assistance you need at such a difficult moment.

Responsibilities During a Fraud Investigation

The bank will investigate the fraud by any means necessary, but you will also be a key part of the team trying to fix things. The moment you discover any such activity, inform your bank about it. Give them the documents that would support your claim, such as a copy of the correspondence and the records of the transactions.

You should keep a detailed record of all communications with the bank and other people involved. You must answer their follow-up inquiries while providing them with all necessary information.

You need to monitor your accounts continuously during this period. The police report that you submit will serve as a valuable resource for your investigation.

Preventing Bank Fraud: Tips for Consumers

Fraud prevention measures are laid down as a necessity and you should know what to do if one actually happens. Regularly check your bank statements and account activity as the first measure of protection. Suspicious transactions should be immediately reported.

With online bank accounts, you’ll need to create strong passwords that you update regularly. The system provides its users with two-factor authentication as an added security measure. Be careful in revealing your personal information. Share them only through the trusted channels available. 

Do not use public Wi-Fi while conducting financial transactions. Be wary of potential phishing scams. This knowledge could save your data from being stolen by others.

Resources for Victims of Bank Fraud

Your fraud case requires you to find the appropriate organization that can provide you with assistance. The Federal Trade Commission (FTC) at IdentityTheft.gov provides a personalized recovery plan, which represents a suitable option for your reporting needs. You should report the crime to your local police department because they require this information to establish the official record of the fraud.

You need to examine your credit report for any unauthorized charges, which you can access through AnnualCreditReport.com at no cost. You should try joining support groups and forums. These groups will provide you with materials that you can use to share your personal experiences while learning from people who have similar experiences.

You should always ask for help whenever you require assistance.