Connect with us

Technology

Why scammers open bank accounts in your name

Published

on

Why scammers open bank accounts in your name

NEWYou can now listen to Fox News articles!

Identity theft now hits people in sneaky ways. Criminals no longer stop at credit cards or loans. 

They test stolen personal data by applying for deposit accounts under your name, which confuses many victims and leaves them unsure how to respond. Brian in Clinton, Pennsylvania recently experienced this twice in the same week. Here is the email he sent us:

“I was recently notified by two different banking institutions that someone completed an online application to open a deposit account in my name. Both banks denied the applications and sent me notifications. One bank sent an email and the other sent a letter. Neither bank will share any information with me about what information was submitted or why the applications were denied. I understand why fraudsters try to open credit accounts, but why would they try to open deposit accounts? One bank told me they could not share any information with me about the failed application due to privacy policy and the other bank said they do not save any information from declined applications from non-customers. 

Why would banking institutions not capture or share information about declined online applications? As far as I know, the credit bureaus do not collect information about deposit accounts and Early Warning Services only has information from banks that voluntarily report to them. So, how do I respond or react to someone trying to open deposit accounts in my name? I have put a one year fraud alert on with the credit bureaus but I don’t believe that will help me if someone tries to open a deposit account. Any help or advice would be greatly appreciated. Thanks.”  Brian, Clinton, PA

Advertisement

You are right to take this seriously. Deposit account fraud is rising fast as criminals build synthetic identities and test stolen data. When thieves apply for a checking or savings account in your name, they are gathering information about which stolen identities work and which fail. That gives them room to launch more damaging attacks later.

LANDLINE IDENTITY THEFT LEADS TO MAJOR BANK FRAUD

Sign up for my FREE CyberGuy Report
Get my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox. Plus, you’ll get instant access to my Ultimate Scam Survival Guide – free when you join my CYBERGUY.COM newsletter.

Why criminals open deposit accounts

Criminals use deposit accounts for several strategic reasons that help them test stolen data and prepare bigger attacks.

Testing stolen data

Fraudsters often begin with deposit accounts because the approval process can be less tied to credit checks. They want to see if your data passes early verification steps.

Advertisement

Moving stolen money

A new deposit account helps criminals launder funds or receive payments linked to scams, unemployment fraud or tax refund theft.

Setting up future attacks

Once they confirm your identity can be used, they may open credit lines or build a synthetic profile that blends your real data with fake details.

Why banks won’t share details

Banks follow strict privacy rules under federal law. Those rules limit the information they can share about any application, even when it misuses your identity. Many banks:

  • Purge declined applications fast to reduce their exposure to unnecessary data
  • Use external verification services that store the data outside the bank
  • Require subpoenas before releasing IP addresses to law enforcement

Even though an IP address can help identify a fraudster, banks will not share it without a legal request tied to an active investigation.

How to protect yourself from deposit account fraud

Take these actions now to lock down your identity and reduce the chances that a criminal can misuse your information again.

 1) Consider identity monitoring

Deposit account fraud often falls outside normal credit monitoring. A service that looks at bank accounts and dark web activity adds extra protection. Identity Theft companies can monitor personal information like your Social Security number (SSN), phone number, and email address, and alert you if it is being sold on the dark web or being used to open an account. They can also assist you in freezing your bank and credit card accounts to prevent further unauthorized use by criminals.

Advertisement

See my tips and best picks on how to protect yourself from identity theft at Cyberguy.com.

2) File an FTC Identity Theft Report

Go to IdentityTheft.gov and complete the report. It creates a formal record you can use if you need to file a local police report later.

3) Add stronger alerts or freezes

Brian, you already placed a one-year fraud alert, but you can upgrade to a seven-year alert. You can also freeze your credit at Equifax, Experian and TransUnion to stop new credit lines from opening.

4) Use a data removal service

A data removal service scrubs your personal details from people search sites that criminals often use to build synthetic identities. This reduces how much of your information can be exploited in future attacks.

While no service can guarantee the complete removal of your data from the internet, a data removal service is really a smart choice. They aren’t cheap, and neither is your privacy. These services do all the work for you by actively monitoring and systematically erasing your personal information from hundreds of websites. It’s what gives me peace of mind and has proven to be the most effective way to erase your personal data from the internet. By limiting the information available, you reduce the risk of scammers cross-referencing data from breaches with information they might find on the dark web, making it harder for them to target you.

Advertisement

Check out my top picks for data removal services and get a free scan to find out if your personal information is already out on the web by visiting Cyberguy.com.

Get a free scan to find out if your personal information is already out on the web: Cyberguy.com.

5) Check ChexSystems and Early Warning Services

These companies track deposit account activity. Request your reports at chexsystems.com and earlywarning.com. Look for unauthorized entries and add a security alert or freeze to both.

6) Notify the banks

Even if they cannot share details, ask them to document the attempt on your record. This helps flag future fraud attempts.

7) Watch your mail

Look for debit cards, 1099 forms or bank statements you did not request. Those often reveal when criminals succeed somewhere else.

Advertisement

Next steps

Print every letter or email from the banks. Complete the FTC report and use it if you need to file a police report. Review your ChexSystems and Early Warning reports and add freezes where possible so your identity becomes less useful to criminals.

Kurt’s key takeaways

Deposit account fraud feels confusing because it works outside traditional credit systems. Yet the goal is simple. Criminals want to see which stolen identities pass early checks so they can launch larger attacks later. A few fast steps can shut that door and give you control again.

What other questions do you want us to tackle about identity theft and online banking safety? Let us know by writing to us at Cyberguy.com.

Sign up for my FREE CyberGuy Report
Get my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox. Plus, you’ll get instant access to my Ultimate Scam Survival Guide – free when you join my CYBERGUY.COM newsletter.

Copyright 2025 CyberGuy.com. All rights reserved.

Advertisement

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Technology

Valve’s huge SteamOS 3.8 update adds long-awaited features — and supports Steam Machine

Published

on

Valve’s huge SteamOS 3.8 update adds long-awaited features — and supports Steam Machine

Not only is it the first release to support the upcoming Steam Machine living room gaming PC, it comes with long-awaited features for Valve’s handhelds and more support for other companies’ handhelds than we’ve seen to date — including Microsoft and Asus’ Xbox Ally series, the Lenovo Legion Go 2, the OneXPlayer X1, and additional support for MSI, GPD, Anbernic, OrangePi, and Zotac.

The one that excites me most: Valve is adding genuine hibernation and “memory power down” modes to the Steam Deck — though just the LCD model to start — which should help extend battery life when you hit the power button or leave them idle. Some Windows machines currently last longer than the Steam Deck when asleep, because they self-hibernate to save power, while the Steam Deck has an instant-on sleep mode.

Plus, Valve has finally added a setting in its gaming mode to let you use your Bluetooth headset microphones — something I’ve been asking for since the beginning. (Valve did add it to the Linux desktop mode last year.) And the Steam Deck LCD is finally getting Bluetooth Wake re-enabled, so you can turn on your TV-connected Deck with a wireless controller from your couch.

The update comes with all sorts of improvements for the Linux desktop modes that sound like they’ll come in handy on a Steam Machine plugged into a TV or monitor, too, including desktop HDR, VRR display support, per-display scaling, “improved windowing behavior for games running in Proton,” and an upgrade to KDE Plasma 6.4.3 among other things.

And for a Steam Machine or Steam handheld plugged into a home entertainment system, they can now detect how many audio channels you have over HDMI to enable surround sound. (I believe surround sound was already a thing, so perhaps this is just a different and better automatic implementation.)

Advertisement

There’s also a new Arch system base and an updated graphics driver.

Perhaps most surprisingly, the “Non-Deck” section of the changelog is huge. Valve says long-pressing your power button should work “across a wide variety of devices” to power off, restart, or switch to the desktop mode. You should be able to change your processor’s power modes on the Xbox Ally now, and night mode and screen color settings should work on AMD Z2 Extreme handhelds in general.

There’s also “Greatly improved video memory management with discrete GPU platforms,” you can limit how far the battery charges in any of the Lenovo Legion Go handhelds (in desktop mode), and it should fix “washed out colors for Zotac and OneXPlayer handhelds with OLED.”

There’s a lot in this update, and it’s possible I missed a feature you care about, so check out the whole changelog here and below.

Advertisement
Continue Reading

Technology

Fox News AI Newsletter: Wall-climbing robots swarm US Navy warships

Published

on

Fox News AI Newsletter: Wall-climbing robots swarm US Navy warships

NEWYou can now listen to Fox News articles!

Welcome to Fox News’ Artificial Intelligence newsletter with the latest AI technology advancements.

IN TODAY’S NEWSLETTER:

WATCH: Wall-climbing robot swarms crawl US Navy warships as China’s fleet surges

OPINION: AI comes with a hefty charge, and you are the one who gets stuck with the bill

Advertisement

Dell workforce shrinks 10% for third consecutive year

Swarms of wall-climbing robots will soon be crawling across U.S. Navy warships in a $71 million effort to slash repair delays and boost fleet readiness as China continues expanding its naval power.  (Gecko Robotics )

TECH AT SEA: WATCH: wall-climbing robot swarms crawl US Navy warships as China’s fleet surgesFox News Digital reports on a new development in naval technology, featuring wall-climbing robot swarms that are crawling on U.S. Navy warships. This advancement comes at a critical time in defense politics as China’s naval fleet continues to surge in size and capability.

WALLET SHOCK: OPINION: AI comes with a hefty charge, and you are the one who gets stuck with the bill – In this opinion piece, the author discusses the economic implications of the growing artificial intelligence industry. The article argues that the hefty costs associated with AI development and its massive energy infrastructure will ultimately be passed down, leaving everyday consumers to foot the bill.

Dell Technologies headquarters in Round Rock, Texas, US, on Sunday, Nov. 26, 2023.  (Sergio Flores/Bloomberg via Getty Images)

Advertisement

COST CRUNCH: Dell workforce shrinks 10% for third consecutive year – Fox Business reports that Dell’s workforce has shrunk by ten percent. This marks the third consecutive year of workforce reductions for the major technology company amid shifting economic conditions and corporate restructuring.

AIMING HIGH: FULL AUTONOMY: AI pilot technology advances towards military capability – Merlin CEO Matt George details how the company is using artificial intelligence to enable military and commercial aircraft to operate fully autonomously on Fox Business’ ‘The Claman Countdown.’

Single family homes in a residential neighborhood in San Marcos, Texas, US, on Tuesday, March 12, 2024. (Photographer: Jordan Vonderhaar/Bloomberg via Getty Images)

SHOULD I BUY?: Homebuyers, sellers turning to AI chatbots for advice – Prairie Operating Co.’s Lou Basenese and real estate broker Kirsten Jordan discuss how artificial intelligence is impacting homebuyers and sellers on ‘Fox Business In Depth.’

DISRUPTION IS HERE: Charles Payne: AI disruption is here – Fox Business host Charles Payne discusses the economic impact of the rise in artificial intelligence on ‘Making Money.’

Advertisement

BUILDING HER BUSINESS: How Angie Hicks turned Angi into a home services giant and AI player – Angi co-founder Angie Hicks discusses entrepreneurship, company growth and how she built out her business on ‘Mornings with Maria.’

FOLLOW FOX NEWS ON SOCIAL MEDIA

Facebook
Instagram
YouTube
X
LinkedIn

SIGN UP FOR OUR OTHER NEWSLETTERS

Fox News First
Fox News Opinion
Fox News Lifestyle
Fox News Health

DOWNLOAD OUR APPS

Fox News
Fox Business
Fox Weather
Fox Sports
Tubi

WATCH FOX NEWS ONLINE

Fox News Go

Advertisement

STREAM FOX NATION

Fox Nation

Stay up to date on the latest AI technology advancements, and learn about the challenges and opportunities AI presents now and for the future with Fox News here.

Advertisement
Continue Reading

Technology

A rogue AI led to a serious security incident at Meta

Published

on

A rogue AI led to a serious security incident at Meta

For almost two hours last week, Meta employees had unauthorized access to company and user data thanks to an AI agent that gave an employee inaccurate technical advice, as previously reported by The Information. Meta spokesperson Tracy Clayton said in a statement to The Verge that “no user data was mishandled” during the incident.

A Meta engineer was using an internal AI agent, which Clayton described as “similar in nature to OpenClaw within a secure development environment,” to analyze a technical question another employee posted on an internal company forum. But the agent also independently publicly replied to the question after analyzing it, without getting approval first. The reply was only meant to be shown to the employee who requested it, not posted publicly.

An employee then acted on the AI’s advice, which “provided inaccurate information” that led to a “SEV1” level security incident, the second-highest severity rating Meta uses. The incident temporarily allowed employees to access sensitive data they were not authorized to view, but the issue has since been resolved.

According to Clayton, the AI agent involved didn’t take any technical action itself, beyond posting inaccurate technical advice, something a human could have also done. A human, however, might have done further testing and made a more complete judgment call before sharing the information — and it’s not clear whether the employee who originally prompted the answer planned to post it publicly.

“The employee interacting with the system was fully aware that they were communicating with an automated bot. This was indicated by a disclaimer noted in the footer and by the employee’s own reply on that thread,” Clayton commented to The Verge. “The agent took no action aside from providing a response to a question. Had the engineer that acted on that known better, or did other checks, this would have been avoided.”

Advertisement

Last month, an AI agent from open source platform OpenClaw went more directly rogue at Meta when an employee asked it to sort through emails in her inbox, deleting emails without permission. The whole idea behind agents like OpenClaw is that they can take action on their own, but like any other AI model, they don’t always interpret prompts and instructions correctly or give accurate responses, a fact Meta employees have now discovered twice.

Continue Reading
Advertisement

Trending