What Fraudsters Can Do With Your Bank Account Number

A compromised bank account number may seem harmless at first glance—but in the hands of cybercriminals, it can lead to a series of damaging financial crimes. From unauthorized withdrawals and online purchases to identity theft and tax fraud, the risks are real—and growing.

Here’s a breakdown of what fraudsters can do with your banking details, and how you can protect yourself.

1. Execute Unauthorized ACH Transfers

Fraudsters exploit the Automated Clearing House (ACH) system to drain accounts through delayed electronic transfers. Since these transfers can take several days to process, victims may not detect fraudulent activity until it’s too late.

Criminals might use a variety of methods to initiate ACH fraud:

Stealing debit cards or gaining online access.
Harvesting account numbers through phishing scams or data breaches.
Looking up routing numbers online and pairing them with stolen personal information to impersonate you.

They can then:

Orchestrate an ACH “kiting” scam by cycling funds across multiple banks to extract cash before the transactions settle.
Exploit “ghost funding” policies—some banks temporarily credit accounts while ACH payments are pending. Criminals quickly convert these into crypto or other assets before the funds are reversed due to insufficient balances.

2. Make Unauthorized Purchases and Subscriptions

Bank account information can be linked to retail platforms and services, making it easier for scammers to:

Set up checking accounts on Amazon, requiring minimal additional data like a home address or ID number.
Reload prepaid store cards via ACH at major retailers.
Register for “Buy Now, Pay Later” services such as Affirm and Afterpay, using your details to make large purchases like electronics or furniture.
Enroll in recurring payment plans for bills, subscriptions, and even rent payments.

3. Use Your Identity for Money Laundering

Some criminals open fraudulent bank accounts—known as “mule” or “drop” accounts—in your name to funnel illegal funds or sell to other bad actors. This can happen without your knowledge.

For instance, a New Jersey fraud ring created fake IDs using stolen data to open bank accounts, cash checks, and route stolen money. Authorities spent two years investigating before uncovering the operation.

4. Forge and Cash Fake Checks

Access to your bank account information allows criminals to either request legitimate checks or fabricate their own. They might:

Steal checks from your mailbox and alter the payee information.
Create fake checks using your account and routing numbers.
Convince others to deposit counterfeit checks and return part of the proceeds—leaving the unsuspecting person liable once the check bounces.

Some messaging platforms, like Telegram, are hubs for organizing check fraud schemes. Investigators have discovered dozens of active channels discussing methods of check washing and counterfeiting.

If you suspect check fraud:

Immediately notify your bank or credit union.
Check your state’s deadline for reporting unauthorized checks—generally, within 30 days of your bank statement.
For remotely created checks, file an adjustment with the Federal Reserve within 90 days. Include a written explanation and copies of both sides of the check.

5. Commit Identity Theft

A bank account number alone won’t allow for full identity theft—but it’s a puzzle piece. When combined with other personal identifiers, it opens the door to a wider breach of your identity.

Fraudsters may:

Steal documents from your mailbox or physical wallet.
Trick people via social media impersonation.
Purchase stolen data on underground marketplaces.
Install spyware on devices through public Wi-Fi networks.
Set up spoofed websites that mimic your bank’s login page.

With enough data, they can open new credit accounts, claim tax refunds, or even apply for loans in your name.

6. Hijack Your Bank Account

Recent high-profile data breaches, like the one affecting Mr. Cooper mortgage customers, exposed millions of consumers’ full banking and personal profiles—making targeted attacks easier.

Using real information (like your bank account number), scammers craft emails or text messages that appear to come from your bank, asking you to “verify” login credentials. Because the message includes authentic details, it increases the likelihood you’ll fall for the scam.

7. Defraud the IRS with Tax Schemes

Some identity thieves file fake tax returns using stolen data to claim refunds. Here’s how they operate:

Submit fraudulent returns requesting direct deposit.
When the refund arrives, they pose as IRS agents and demand you return the money under the threat of fines or arrest.
Victims are tricked into sending the money through wire transfers, gift cards, or mobile apps like Zelle or Venmo.

If you receive unexpected refunds with no accompanying IRS letter, it could be fraud. Contact your bank and the IRS immediately.

What Are Your Legal Rights If Scammers Use Your Bank Details?

Generally, you’re protected against fraud, but your liability depends on how quickly you act.

ACH Fraud
You must report unauthorized activity within 60 days of your statement date. Delays can jeopardize your claim.

Online Purchases
Report fraudulent transactions within 60 days. Your financial institution has 10 days to investigate. If fraud is confirmed, a refund must be issued within one day, and findings provided within three days.

Forged Checks
You may be liable if your own negligence played a role (e.g., not reporting stolen checks). File a police report, alert your bank quickly, and request your account be closed if multiple forgeries occur. Federal law limits your liability to $50 if you act within two days.

Tax Fraud
Contact the IRS Identity Protection Unit at 800-908-4490. You’ll need to:

Submit Form 14039 (Identity Theft Affidavit).
Report the incident to IdentityTheft.gov.
Notify the three credit bureaus to place fraud alerts.

How Do Criminals Access Your Banking Information?

Phishing Scams
Fake texts, emails, and calls may mimic legitimate institutions. These schemes often incorporate real personal data from data breaches, making them appear credible.

In one case, a couple in Colorado received a fake fraud alert from “Chase Bank” and lost $137,000 after sharing a one-time security code with the impostor caller.

Card Skimming Devices
Criminals attach small hardware tools to ATMs or store payment terminals to collect card information during swipes or inserts.

A group in Rhode Island was arrested for operating a multi-state skimming ring that stole over $300,000 through modified checkout terminals.

Data Breaches at Third-Party Vendors
Companies like online retailers and payment processors (e.g., Stripe or ShopPay) are frequent targets. When they’re breached, your banking details may be exposed.

When Is It Safe to Share Your Account Information?

Only disclose your bank details to verified and trustworthy parties, such as:

Your employer for direct deposits.
The IRS or tax prep services.
Online platforms like PayPal or Venmo (with secure authentication).
Lenders for automatic withdrawals.
Personal contacts for check payments.

Even legitimate businesses are vulnerable to breaches—so vigilance is always necessary.

What to Do If Your Bank Account Number Is Compromised

Act immediately if you suspect your information has been stolen:

Call Your Bank – Report the issue, initiate a fraud claim, and request a freeze or closure of affected accounts.
Alert Other Involved Entities – Notify companies linked to your bank account, including utility providers, apps, and retailers.
Freeze Your Credit – Contact Equifax, Experian, and TransUnion to block unauthorized credit inquiries. You can also freeze your ChexSystems report to prevent new bank accounts from being opened in your name.
Update Passwords – Use complex, unique passwords for your banking and financial accounts. Store them securely using a password manager. Enable multi-factor authentication wherever possible.

Staying informed is your first line of defense against financial fraud. The more you know about how scammers operate, the better you can shield your finances—and your future.