Why is it important to review account statements regularly?

Reviewing account statements regularly is crucial primarily because it allows individuals to identify unauthorized transactions or suspicious activity quickly. When account statements are monitored consistently, any discrepancies, unusual charges, or unfamiliar transactions can be spotted without delay. This prompt detection is vital in mitigating potential losses from identity theft or fraud, as it enables the account holder to take swift action—such as reporting the issue to the financial institution and preventing further unauthorized access.

While other choices address various aspects of account management or financial planning, the ability to recognize and respond to suspicious activity is the most critical. This proactive approach can significantly reduce the impact of identity theft and help ensure the safety of one's financial resources.