What to Do If Your Credit Card Is Hacked

A credit card hack occurs when an unauthorized individual gains access to your credit card details, using them for purchases or other transactions without your permission. Discovering that your financial information has been compromised can be unsettling, but taking swift, informed action is essential to protect your accounts and mitigate potential damage. Understanding the immediate steps to take and the protections available can help navigate this challenging situation effectively.

Taking Immediate Action

The first action upon discovering unauthorized activity on your credit card is to contact your credit card issuer without delay. Find the customer service or fraud hotline number on your card, statement, or the issuer’s website or app. Many financial institutions offer 24/7 fraud hotlines and mobile app features for immediate card freezing or blocking.

When contacting your issuer, be prepared to provide specific details about the suspicious charges, including dates, amounts, and merchant names. Review your transaction history to identify all unauthorized entries and unfamiliar merchant names. Your issuer can help you distinguish between freezing your card (temporarily preventing new transactions while keeping recurring payments active) and canceling it (permanently deactivating the card and requiring a new one).

Reporting Fraudulent Activity

After securing your account, formally report the fraudulent activity to your credit card company’s fraud department. Representatives will ask verification questions and request detailed information about suspicious transactions. This initiates a formal dispute and requires submitting a fraud claim.

Obtain a confirmation number or case ID for your report. This serves as a record for future follow-up. While a phone call is quickest, follow up with a written billing error notice within 60 days of the charge appearing on your statement.

Credit card companies must acknowledge disputes in writing within 30 days and resolve claims within 30 to 90 days (two billing cycles). During this investigation period, the credit card company cannot attempt to collect the disputed amount or charge interest on it. Once the investigation concludes and charges are deemed fraudulent, a new card will be issued, often within three to five business days. Remember to update your card details with any online merchants or services where your card information is saved for recurring payments.

Protecting Your Financial Identity

Beyond addressing immediate credit card fraud, take broader measures to protect your financial identity. Begin by checking all other financial accounts, including bank accounts, other credit cards, and investment accounts, for any unusual or unauthorized activity. This helps detect if the compromise extended beyond a single credit card.

Place a fraud alert on your credit reports with one of the three major credit bureaus: Equifax, Experian, or TransUnion. By contacting just one of these bureaus, your request is forwarded to the other two, ensuring widespread notification. An initial fraud alert remains on your credit report for at least one year, signaling to potential lenders to verify your identity before opening new credit accounts.

Regularly monitor your credit reports. Obtain a free copy of your credit report from each of the three major credit bureaus once every 12 months through AnnualCreditReport.com, the only federally authorized source. Reviewing reports helps spot unauthorized accounts or inquiries. Finally, change passwords for all online banking, email, and other sensitive accounts, especially if the credit card hack might be linked to a broader data breach. Creating strong, unique passwords adds a significant layer of security.

Understanding Your Protections

Consumers have specific legal protections against unauthorized credit card use, primarily under the Fair Credit Billing Act (FCBA). This federal law limits your personal liability for unauthorized charges to a maximum of $50, provided you report the fraud promptly. Many credit card issuers voluntarily offer “zero liability” policies, meaning you are not held responsible for any unauthorized charges, often exceeding the federal $50 limit. These enhanced protections are common among major card networks.

Liability for debit card fraud is governed by Regulation E, which outlines different rules compared to credit cards. For debit cards, liability depends on how quickly you report unauthorized transactions.

If you report the loss or theft of your debit card within two business days, your maximum liability is limited to $50. However, if you report it after two business days but within 60 calendar days of the statement showing the unauthorized transfer, your liability could increase to as much as $500. Reporting after 60 days can result in unlimited liability for transfers occurring after that period. Acting quickly to report suspicious activity is important to maximize protections for both credit and debit card accounts.