Credit Card Fraud: What to Do When It Happens to You
Navigate credit card fraud with confidence. Get essential steps to resolve unauthorized charges, safeguard your financial well-being, and move forward.
Credit card fraud can disrupt financial stability. Immediate reporting, safeguarding financial identity, understanding consumer protections, and proactive measures reduce future risks.
Reporting the Fraud
Contact your credit card issuer immediately upon discovering unauthorized transactions. The customer service number is typically on your card, statement, or the issuer’s website or app.
Before calling, gather the credit card number, dates and amounts of fraudulent transactions, and merchant names if possible. The Fair Credit Billing Act provides a 60-day window from the statement date to dispute billing errors.
During the call, dispute the unauthorized charges. Upon successful reporting, the issuer will cancel the compromised credit card. A new card will be issued, arriving within 7 to 10 business days.
Document every interaction. Note the date and time of your call, the representative’s name or ID, and any reference numbers. Keep a detailed record for future reference.
Protecting Your Credit and Identity
Place a fraud alert with one of the three major credit bureaus. Notifying one bureau requires it to inform the other two, and the alert remains on your credit report for one year.
Contact each of the three major credit bureaus individually to place a credit freeze, and again to temporarily lift it for legitimate credit applications.
Regularly monitor your financial accounts, statements, and all three credit reports. You are entitled to a free copy of your credit report from each major credit bureau once every 12 months through AnnualCreditReport.com.
Change passwords for any affected online accounts. Use strong, unique passwords for each account. Enable two-factor authentication (2FA) for all online accounts.
Understanding Your Legal Rights
The Fair Credit Billing Act (FCBA) provides legal protections against credit card fraud. Under the FCBA, your maximum liability for unauthorized use is $50, provided you report the fraud within a reasonable timeframe.
Many major credit card networks offer “zero liability” policies. These policies provide greater protection than the FCBA.
Once you dispute a charge, the FCBA requires the issuer to investigate. They cannot attempt to collect the disputed amount or report it as delinquent to credit bureaus. The issuer must acknowledge your dispute within 30 days and resolve the issue within two billing cycles, or 90 days.
Timely reporting of fraud impacts these protections. Immediately reporting unauthorized activity ensures the most favorable outcome. Prompt notification helps the issuer prevent further fraudulent transactions and begin investigation.
Preventing Future Incidents
Avoid letting your card out of sight during transactions, and sign the back of new cards immediately upon receipt. If your credit card is lost or stolen, report it to your issuer without delay.
Shred documents before discarding them. Be cautious about sharing personal details over the phone or online unless you initiated and verified the request.