Protecting Yourself from New Account Fraud

The Growing Threat of New Account Fraud

In 2024, reported losses from new account fraud hit $6.2 billion, more than double compared to a decade ago.

New account fraud occurs when criminals use your personal information — or a completely fake identity — to open bank accounts in your name without your knowledge. These schemes often start with a data breach, phishing scam, or stolen mail, and they can hurt your finances and credit before you realize anything is wrong.

For example, a criminal may use a stolen Social Security number to open a checking account at a financial institution. Soon after, they deposit a fraudulent tax refund check, withdraw the money before the check bounces, and disappear — leaving the bank and possibly the real account holder to deal with the fallout. The victim may not discover the problem for months.

Protecting your personal information is one of the most important things you can do to prevent this type of fraud.

What is New Account Fraud?

New account fraud happens when someone uses your personal information — or a fake identity built with pieces of your data — to open new bank, credit card, or loan accounts. Criminals may get your information through:

Data breaches that expose your Social Security number, address, or date of birth
Phishing emails, texts, or calls designed to trick you into sharing your information
Stolen mail including tax documents, checks, or pre-approved credit offers
Dark web marketplaces where stolen personal data is bought and sold

Why Is This Dangerous?

If a fraudster opens an account in your name, they may:

Deposit fraudulent checks and withdraw the money before they are returned
Damage your credit history with unpaid debts or defaulted loans
Open additional accounts or lines of credit to steal as much as possible
Leave you liable for fraud losses that can take months to resolve

Because this fraud often goes undetected for months, protecting your information before it happens is critical.

Steps You Can Take to Protect Yourself

Protect your Social Security number: Never carry your Social Security card. Only share your SSN when absolutely necessary and with trusted institutions.
Secure your mail and documents: Shred financial documents before discarding. Collect mail promptly and consider a USPS mail hold if traveling.
Monitor your credit regularly: Check your credit report regularly at AnnualCreditReport.com and look for accounts or inquiries you don’t recognize.
Consider a credit freeze: A credit freeze makes it harder for someone to open new accounts in your name. It’s free at all three major credit bureaus, and you can lift it at any time.
Be cautious of phishing scams: Never share your Social Security number, date of birth, or account information in response to unexpected calls, texts, or emails.

What to Do If Your Suspect Fraud

Contact HomeTrust Bank immediately: Call our Customer Care Center at 800.627.1632 — we can help review your accounts and take protective steps.
Place a fraud alert with the credit bureaus: Contact Equifax, Experian, or TransUnion to place a fraud alert. This requires businesses to verify your identity before opening new accounts.
Review your credit report for unknown accounts: Request your free credit reports at AnnualCreditReport.com and dispute any accounts or inquiries you don’t recognize.
Report to the FTC at IdentityTheft.gov: The FTC can create a personalized recovery plan and help you dispute fraudulent accounts with creditors.
Continue monitoring your accounts and credit: New account fraud can happen again. Stay watchful by reviewing your credit and account statements regularly, even after you resolve an incident.

Fraud Prevention Reminder

HomeTrust Bank will never ask for your Social Security number, account number, or personal information via unsolicited calls, texts, or emails. When in doubt, hang up and call us directly at 800.627.1632.