All forms of identity theft are bad but the ones involving your bank account seem to be the most invasive and hurtful. Whether your account is nearly wiped out or whether there is one fraudulent ATM transaction, both are tough to get over.

It is unusual the way laws deal with different types of bank frauds. Some are under the states jurisdiction while others are federal, and it pays to know which are which in case you ever face the situation.The differences have to do with whether the transaction was an electronic one or a paper one. Many transactions seem to be electronic but, in fact, are paper transactions. For instance, whenever a paper document like a counterfeit check, a stolen check or other document is used, thats a paper fraud and is covered by the states laws. Whenever it involves the ATM or a wire transfer, it comes under federal laws. In the case of either, the quicker you notice the fraud and report it, the quicker you are not liable for the amount of the theft. If you report a loss or theft within two days of the discovery, your losses are limited to $50. After two days but within sixty, it goes up to a liability of $500. If you wait longer than sixty days, you could be liable for all of it. So, it pays to be constantly aware of your account and its holdings.

If you are dealing with a small local bank, a phone call will usually suffice, but if your bank is one of the big ones, follow the phone call with a certified letter to the institution, and keep a copy of it. The bank will then investigate and report their findings back to you.

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