Your bank sends an email to you at the end of each month. It’s called the bank statement. Most people don’t regard it as important. So, they trash it or ignore it totally.
This is a big mistake. Why? You can avoid losing money if you take your time to read it.
What Is a Bank Statement Anyway?
See a bank statement as a report card for your cash. It’ll tell you everything that happened in your bank account in the past month. You get to see how every dollar came in and went out.
It features your paycheck, the dinner you had with Bob last Tuesday, everything. Your statement shows your starting balance, ending balance, and fees you were charged. That’s why your monthly bank statement is super important.
This looks simple, right? But here’s where things get a little bit interesting.
The Message You Should Never Ignore
Your statement doesn’t just include the inflows and outflows on your account for a month. Sometimes, your bank might insert a notice about a change in fees, a new policy, or the big one, which is unusual activity on your account.
If you spot a transaction that you didn’t approve, that’s a red flag.
Don’t ignore it.
This mysterious charge could be fraud. Scammers often start small to test the waters. So, they might take $1 or $2. If no one flags it, they may see it as an opportunity to make larger withdrawals.
Unauthorized Transactions Happen Way More Than You Think
An unauthorized transaction is one that you didn’t make or authorize. This could be due to someone stealing your debit card details or hacking into your bank account.
Both situations are more common than you might think. That’s why you should always check your bank statement when your bank sends it over.
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But there’s good news. In the US, the law is on your side. Let’s say you come across a charge you didn’t make.
If you tell your bank about this within 60 days of them sending your statement, it’s their duty to look into it. Your financial institution must investigate the issue within 10 business days. This timeline can extend to 45 days (90 days in some cases) with provisional credit.
If your bank discovers it was a fraud, they have to refund the cash you lost in the process.
However, if you report a fraudulent payment after the 60-day reporting timeline, you could lose your rights to recover missing funds. That’s why you must read your bank statement each month.
Watch Out for Check Fraud Also
Checks might feel old-school. But scammers love them. Check fraud occurs when someone steals your checks and uses them to steal money from your account.
Some scammers even go further. They may wash the check with chemicals to remove the original ink. Once they do this, they’d write in a new name or a bigger amount. If successful, that withdrawal will appear on your bank statement.
This is scary. But it happens. One way you can fight against it is by reviewing your bank statement. If there’s a check you don’t remember writing, call your bank as soon as possible.
3 Easy Habits for Your Bank Statement Review
You don’t need to be a financial expert to keep your account safe from fraud. Do these three things when you get your bank statement:
- Review Your Statement From Top to Bottom: Take a look at every transaction on your statement. If you see anything strange, flag it. Even payments that are several dollars more than you expected are worth another look.
- Check for Fees: Banks can charge you for many things. This includes ATM cards, overdrafts, and routine account maintenance. If you spot any charge that doesn’t make sense, speak to your bank about it.
- Report Problems Fast: The quicker you tell your bank about a strange charge or payment, the faster they can help you.
Bottom Line
Your statement is a summary of your financial life each month. It’ll show you what you spent your money on, the charges you paid, and whether or not someone else has access to your account without your permission.
The next time you get your bank statement, check it out immediately. And if you find anything out of place, report it to your bank immediately.
