A Bank’s Guide to Customer Service After ID Theft

Having your identity stolen is a stressful experience, and a time when banks can step in to provide caring service

A few weeks ago, I got an email congratulating me on having my travel rewards credit card application with a major bank approved. There was one problem: I hadn’t applied for a credit card.

Last year, identity fraud losses totaled $24 billion and hit 15 million U.S. consumers, according to a 2022 identity fraud study from Javelin. This year, I was one of those unlucky consumers, and the experience was extremely stressful and worrying. I also learned from what my bank did, and didn’t do, about how to provide excellent customer service in the wake of ID theft.

“The effects of identity theft are far-reaching: impacting victims’ general emotional and physical well-being, their relationships with others and even how they engage within their work or school environments,” according to Eva Velasquez, president and CEO of the Identity Theft Resource Center. “As we work with industry and other stakeholders, it’s crucial to continue to share the emotional, physical and socio-economic impact findings with them so they better understand the totality of the ramifications of this crime, as well as providing encouragement for them to elicit change within their organizations.”

With that charge in mind, here are five ways banks can better serve customers at this trying (and stressful) time:

1. Improve automated systems

When I called the big bank that had approved a fraudster’s application for a credit card in my name, I was extremely stressed. My worry was exacerbated by having to jump through hoops to figure out how to be allowed to speak to a person. Many banks’ automated systems ask you to input your credit card number, so non-customers, even those who are reporting fraud, may have issues getting through to a person. I finally resorted to saying “human, human” and pressing 0 over and over again.

2. Minimize wait time for fraud calls

By the time I managed to get put on hold to speak to a human, I waited on hold for over 40 minutes before a person finally got on the line. During my time on hold, my angst grew, and I became more and more irate that waiting on hold was taking up so much of my day. Banks could mitigate much of this stress by minimizing hold times for customers who call to report fraud.

3. Be sensitive to the situation

During my conversation with the bank representative, he tried to use my phone number to “verify my identity” so I could report the fraud. The representative ended up telling me that he was unable to verify me using my number since I had recently changed cell phone carriers, and had ported my number to the new carrier a few months earlier. He told me I had to physically go to a local branch of the bank with two forms of ID. When I expressed frustration that the bank hadn’t shown the same diligence in verifying the identity of the person who opened the card in my name, the representative barked, “Ma’am, credit cards were made to be easy to open!” As an ID theft victim, I’d recommend banks provide sensitivity training on the emotional ramifications of this crime, and how to compassionately deal with ID theft victims. It would be a bonus if banks also worked to make resolving the issue as easy and painless as possible.

4. Greet customers warmly and efficiently

I was pretty grumpy about having to go to a bank branch to report the fraud, and I was left wondering what would have happened if I lived in an area without any physical branches of that major bank. As it is, my city only has two. Fortunately, my in-person experience was excellent. When I arrived at the bank, the lobby was crowded. A representative greeted me in less than a minute, asked what I needed and “triaged” me based on my situation. I was happy and relieved that within minutes she was verifying my identity and taking me to a private area to connect me by phone to the bank fraud department.

5. Offer detailed information on options

Back on the phone with the fraud department, I didn’t quite get all the help I’d have liked to have. The representative took my fraud report and closed the account, and outlined next steps. But I had to be extremely proactive about asking what personal information the fraudster had used to open the account. I wondered if they had my date of birth, my Social Security number, and any other private information. After I asked a lot of questions, the representative offered to transfer me to a different department, which would be able to mail me a copy of the fraudulent application. I was put on hold again, and finally requested a copy. Weeks later, I’ve yet to receive it, which has set off a whole new round of worry. I wonder if they sent it, if it went astray, and if that snafu could put my identity at risk again.

Banks can provide better service to customers who are experiencing ID theft if they streamline their processes for reporting fraud, make a plan to proactively provide as much information and guidance as possible to the victim, and learn how to be mindful of the emotional toll ID theft can take on a consumer.