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Why scammers open bank accounts in your name

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Why scammers open bank accounts in your name

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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

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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

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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.

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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.

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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.

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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.

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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.

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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.

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Copyright 2025 CyberGuy.com. All rights reserved.

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Dyson’s powerful 360 Vis Nav robovac is down to $279.99 for a limited time

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Dyson’s powerful 360 Vis Nav robovac is down to 9.99 for a limited time

If you’re tired of running your vacuum multiple times just to get the dirt and debris out of the carpets in your living room, Dyson’s 360 Vis Nav is worth a look. It’s one of the more powerful robot vacuums currently available, and now through May 11th (or while supplies last), it’s on sale at Woot for an all-time low of $279.99 ($919 off) with a full two-year warranty.

The last-gen 360 Vis Nav offers a whopping 65 air watts of suction, allowing it to pull dirt, dust, and pet hair from carpets impressively well. In her brief time testing the robovac, my colleague Jennifer Pattison Tuohy said the Dyson “demolished a pile of dry oatmeal in seconds,” adding that she briefly worried it might even suck up the tassels on her large rug (it didn’t). By comparison, many robot vacuums — including Dyson’s new $1,200 Spot + Scrub AI — require multiple passes to fully eradicate the same kind of mess on your floor.

What’s more, the robovac’s small, D-shaped design and the location of its ultra-fluffy brush allow it to dig into edges and corners more effectively than many of the more roundish robot vacuums, while its lower profile lets it easily get under most beds and sofas. The roomy 500ml dustbin also means you likely won’t need to empty it too often, while Dyson’s built-in handle and terrific quick-release button make removing said bin a relatively simple task when it’s time to do so.

While it is undeniably powerful, it’s worth noting that the 360 Vis Nav lacks a few features found on some of its more modern rivals. Although its navigation worked well enough during our testing, it lacks AI-powered obstacle avoidance and doesn’t come with a self-emptying dock. Battery life is also relatively short at around 65 minutes per charge. Nonetheless, if your top priority is quickly removing dust, dirt, and pet hair from carpets without multiple passes, the Dyson remains an option worth considering, especially at this discounted price.

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Global scam crackdown leads to 276 arrests

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Global scam crackdown leads to 276 arrests

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We’ve often warned you about romance scams and crypto “investment” opportunities that feel too good to pass up. Now, there’s a major update that shows just how organized these operations have become.

The Department of Justice and Federal Bureau of Investigation announced a sweeping international operation that led to at least 276 arrests and the shutdown of multiple scam centers tied to cryptocurrency fraud. These networks targeted Americans and drained millions of dollars from victims.

The operation spanned continents and involved coordinated efforts by law enforcement and tech companies.

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TOP 5 SCAMS SPREADING RIGHT NOW

The Department of Justice and FBI say international scam networks used romance and fake crypto investment schemes to steal millions from victims. (Helena Dolderer/Picture Alliance)

How the cryptocurrency scam crackdown unfolded

Authorities worked with partners around the world, including the Dubai Police and law enforcement agencies in Thailand and beyond. Together, they dismantled at least nine scam centers linked to large-scale crypto fraud.

Several suspects now face federal charges in the United States, including wire fraud and money laundering. Investigators say these operations functioned like businesses, with recruitment, management layers and structured systems designed to deceive victims.

Officials made it clear that this effort sends a message. Fraud crosses borders, and enforcement is now doing the same.

How crypto investment scams target victims

These schemes often follow a pattern known as “pig-butchering.” It is a slow, calculated tactic that builds trust before any money is involved.

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A scammer may reach out through social media or a messaging app and start a casual conversation. Over time, that interaction turns more personal. In some cases, it feels like a real relationship. Once trust is established, the topic shifts toward investing, often framed as a unique crypto opportunity.

Victims are guided through setting up accounts and transferring funds to platforms that appear legitimate. The dashboards may even show fake gains to build confidence. At that point, control of the money is already gone. Funds are quickly moved through multiple accounts and eventually end up with the scammers.

Many victims are encouraged to keep going, sometimes borrowing money or taking out loans to invest more. By the time the truth becomes clear, the losses can be devastating.

How Meta Platforms, Inc. helped track scam networks

Meta Platforms, Inc. played a key role in the investigation by providing data that helped law enforcement identify and track these networks.

The company says it has taken aggressive action across its platforms. In 2025 alone, Meta removed more than 159 million scam ads and shut down 10.9 million accounts linked to scam centers. More recently, it disabled over 150,000 accounts connected to these networks as part of a coordinated enforcement effort.

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“Meta is committed to combatting online fraud and scams, and we are proud to partner with law enforcement in these efforts,” Chris Sonderby, Meta’s vice president and deputy general counsel, said. “We applaud the DOJ and FBI for their leadership in holding criminal scammers accountable and protecting American consumers.”

FROM FRIENDLY TEXT TO FINANCIAL TRAP: THE NEW SCAM TREND

Federal authorities announced a sweeping international crackdown that led to at least 276 arrests tied to cryptocurrency scam centers targeting Americans. (Kurt “CyberGuy” Knutsson)

New tools to stop cryptocurrency scams in real time

Meta is also rolling out new protections across its apps to help users spot scams before they get pulled in.

On Facebook, users may see alerts tied to suspicious friend requests, especially when an account shows unusual behavior such as limited connections or inconsistent location details. 

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On WhatsApp, new warnings are designed to prevent scammers from linking their own devices to someone else’s account, giving users a chance to pause before approving a risky request.

Messenger is also expanding its scam detection tools. When a conversation shows patterns linked to common fraud tactics, users may receive prompts that explain the risk and suggest actions like blocking or reporting the account.

Why this cryptocurrency scam crackdown matters to you

This operation highlights how organized these scam networks have become. These are not random messages from a single person. They are coordinated groups running structured operations designed to build trust, create urgency and move money quickly.

Even with hundreds of arrests, the threat remains. New networks continue to emerge, often using the same playbook with slight changes. That means staying informed is still one of the most effective ways to protect yourself. 

Ways to stay safe from cryptocurrency scams

Scammers follow familiar patterns, which means there are clear warning signs you can watch for and simple steps you can take to protect yourself. 

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1) Slow down unexpected connections

If someone you do not know reaches out and quickly builds a personal connection, slow things down and question the situation. Scammers rely on momentum, so taking a pause can help you spot inconsistencies. 

2) Verify investment platforms before sending money

Before sending money to any investment platform, take time to verify that it is legitimate. A professional-looking website or app does not guarantee it is real. Look for independent reviews and official registration details.

3) Avoid sending crypto to unknown sources

Avoid sending cryptocurrency to individuals or platforms you cannot confirm. Once those transactions go through, they are extremely difficult to recover.

4) Watch for pressure and urgency

Be aware of pressure. If someone pushes you to act quickly or invest more, that urgency is often a warning sign.

5) Use strong antivirus protection

Strong antivirus software can help block malicious links, fake investment sites and other threats before they reach you, adding another layer of defense against scam attempts. Get my picks for the best 2026 antivirus protection winners for your Windows, Mac, Android and iOS devices at Cyberguy.com.

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THE ONE THING SCAMMERS CHECK BEFORE TARGETING YOU ONLINE

Meta said it removed more than 159 million scam ads in 2025 and helped investigators track networks tied to cryptocurrency fraud. (Halfpoint/Getty Images)

6) Limit your personal data exposure

Scammers often rely on publicly available information to build trust. Reducing how much of your personal data appears online by using a data removal service can make it harder for them to target you in the first place. 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.

7) Strengthen your account security

It also helps to strengthen your digital security. Enable two-factor authentication (2FA) on your accounts and use trusted security tools to reduce exposure to malicious links and messages.

8) Report scams as soon as possible

If you believe you have been targeted or defrauded, report it to the FBI’s Internet Crime Complaint Center at ic3.gov as soon as possible.

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Kurt’s key takeaways

This global crackdown is a meaningful step forward. It shows what can happen when law enforcement, tech companies and international partners work together. At the same time, these scams are not going away. The tactics will continue to evolve, and new networks will take the place of those that were shut down. Awareness and caution remain your strongest defenses.

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We report a lot about scams but not so much about scammers getting caught. Does this make you feel like real progress is being made in stopping them? Let us know by writing to us at CyberGuy.com.

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Asus chases Elgato with its own secondary touchscreen display

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Asus chases Elgato with its own secondary touchscreen display

Asus’s latest gaming monitor is a little smaller than usual. The ROG Strix XG129C, announced on Friday, is a 12.3-inch touchscreen IPS display that’s intended to be a sidekick for a larger main monitor, similar to the 14.1-inch secondary display in the 2020 Asus ROG Zephyrus Duo 15. It’s a slightly smaller competitor to Corsair’s Xeneon Edge, which has a 14.5-inch display, but the same 720p resolution.

Asus says the XG129C covers 125 percent of the sRGB color gamut and 90 percent of the DCI-P3 color gamut. It also comes with a one-year subscription for the hardware monitoring tool AIDA64 Extreme, which would usually cost $65. Besides acting as a performance monitor for your PC, sidekick displays like this can also be handy as an extension for streaming or editing setups, much like Elgato’s Stream Deck.

Along with the little XG129C, Asus also announced the ROG Strix OLED XG34WCDMS, a 34-inch RGB Tandem QD-OLED gaming monitor. It features a 280Hz refresh rate and a 3440 x 1440p resolution, and, according to Asus, covers 99 percent of the DCI-P3 color gamut. Asus has not yet officially announced pricing for either display.

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