Reporting Fraud to Your Bank

Quick answer

• Act immediately upon discovering any unauthorized transactions.
• Contact your bank’s fraud department or customer service line.
• Gather all relevant details about the fraudulent activity.
• Follow your bank’s specific procedures for reporting and disputing charges.
• Be prepared to provide documentation and cooperate with their investigation.
• Secure your accounts by changing passwords and monitoring activity closely.

What to check first (before you act)

Account Statements

Before you even pick up the phone, thoroughly review your recent bank statements, credit card statements, and any other financial account records. Look for any transactions you don’t recognize, no matter how small. Sometimes, a small fraudulent charge can be a precursor to larger ones. This initial review helps you pinpoint exactly what needs to be reported.

Transaction Details

For each suspicious transaction, gather as much information as possible. Note the date, the amount, the merchant’s name, and any transaction ID or reference number. If you can recall any circumstances surrounding the transaction that might be relevant (e.g., if your card was lost or stolen around that time), make a note of it. This detailed information will be crucial when you speak with your bank.

Potential Compromise Points

Think about where your financial information might have been exposed. Did you recently shop online on an unsecured website? Did you lose your wallet or purse? Did you receive a suspicious email or text message asking for personal information? Identifying potential entry points can help you understand the scope of the fraud and take preventative measures.

Step-by-step (reporting fraud workflow)

1. Identify the Unauthorized Transaction(s)

What to do: Carefully review your bank and credit card statements, online banking portals, and any transaction alerts you may have received. Look for any activity that you did not initiate or authorize.
What “good” looks like: You have a clear list of all suspicious transactions, including dates, amounts, and merchant names.
A common mistake and how to avoid it: Overlooking small, seemingly insignificant fraudulent charges. Avoid this by scrutinizing every line item, no matter the amount, and trusting your gut if something feels off.

2. Gather All Relevant Information

What to do: Compile all the details about the fraudulent transactions. This includes the exact date, dollar amount, merchant name, and any transaction confirmation numbers. If your card was lost or stolen, note when and where this occurred.
What “good” looks like: You have a comprehensive record of every suspicious charge, ready to present to your bank.
A common mistake and how to avoid it: Waiting to gather information until after you’ve contacted the bank, leading to a disorganized and potentially lengthy conversation. Avoid this by preparing your information beforehand.

3. Locate Your Bank’s Fraud Department Contact Information

What to do: Find the dedicated fraud reporting phone number or email address for your specific bank or credit card issuer. This is often found on the back of your debit or credit card, on your statement, or on the bank’s official website.
What “good” looks like: You have the correct, direct contact information for the bank’s fraud department.
A common mistake and how to avoid it: Calling the general customer service line, which may not be equipped to handle fraud cases efficiently, causing delays. Avoid this by seeking out the specific fraud department number.

4. Contact Your Bank Immediately

What to do: Call the fraud department or customer service line as soon as you discover the unauthorized activity. Be clear and concise about the situation.
What “good” looks like: You are speaking with a bank representative who understands you are reporting fraud.
A common mistake and how to avoid it: Delaying your report, which can give fraudsters more time to make additional unauthorized transactions and can complicate the dispute process. Act without delay.

5. Clearly State You Are Reporting Fraud

What to do: Explicitly tell the representative that you are reporting fraudulent activity on your account. Use terms like “unauthorized transaction” or “fraudulent charge.”
What “good” looks like: The bank representative acknowledges you are reporting fraud and initiates the appropriate protocol.
A common mistake and how to avoid it: Vaguely describing the issue, which could lead the representative to believe it’s a simple billing dispute rather than a potential crime. Be direct.

6. Provide All Details of the Fraud

What to do: Share the information you gathered in Step 2. Answer all questions the bank representative asks truthfully and thoroughly.
What “good” looks like: The bank has a complete picture of the fraudulent activity from your perspective.
A common mistake and how to avoid it: Withholding information or being unsure of details, which can hinder the investigation. Be prepared and honest.

7. Follow Bank Procedures for Dispute and Resolution

What to do: The bank will guide you through their specific process for disputing charges and initiating an investigation. This may involve filling out forms, signing affidavits, or providing additional documentation.
What “good” looks like: You understand the next steps in the investigation and dispute process.
A common mistake and how to avoid it: Failing to complete all required paperwork or follow up as instructed, which can halt the investigation. Be diligent in completing all requirements.

8. Secure Your Account(s)

What to do: Based on the nature of the fraud, your bank may advise or require you to change your PIN, password, or even close and reopen your account. Change passwords on any other online accounts where you use similar credentials.
What “good” looks like: Your compromised account(s) are secured, and your online security is strengthened.
A common mistake and how to avoid it: Not taking sufficient steps to secure your accounts after a fraud incident, leaving you vulnerable to further attacks. Be proactive in changing credentials.

9. Monitor Your Accounts Closely

What to do: For at least the next few weeks and months, regularly check your bank and credit card statements for any new suspicious activity. Set up transaction alerts if your bank offers them.
What “good” looks like: You are actively monitoring your accounts and can quickly spot any new unauthorized charges.
A common mistake and how to avoid it: Becoming complacent after reporting the initial fraud, assuming the problem is entirely resolved. Continuous monitoring is crucial.

10. Consider Filing a Police Report (If Advised)

What to do: Depending on the severity and nature of the fraud, your bank or law enforcement may recommend filing a police report. This can sometimes be helpful for your records and for broader investigations.
What “good” looks like: You have a police report number if one was deemed necessary.
A common mistake and how to avoid it: Not filing a police report when it could be beneficial for documentation or legal purposes. Consult your bank on this step.

What affects your score (plain language)

Your credit score is a three-digit number that lenders use to assess how risky it is to lend you money. It’s calculated based on your credit history. Here’s what generally influences it:

• Payment History: This is the most significant factor. Paying your bills on time, every time, is crucial. Late payments, missed payments, or defaults can severely damage your score.
• Amounts Owed (Credit Utilization): This refers to how much of your available credit you’re using. Keeping your credit utilization ratio low (ideally below 30%, but lower is better) shows you aren’t overextended.
• Length of Credit History: The longer you’ve had credit accounts and managed them responsibly, the better. This shows lenders a longer track record of your financial behavior.
• Credit Mix: Having a variety of credit types (like credit cards, installment loans, mortgages) can be beneficial, as it shows you can manage different kinds of debt responsibly.
• New Credit: Opening too many new credit accounts in a short period can signal increased risk to lenders. Each hard inquiry (when you apply for credit) can slightly lower your score.
• Public Records: Bankruptcies, liens, and judgments can significantly harm your credit score for an extended period.

What NOT to do while improving credit:

While you’re working on improving your credit, avoid actions that could negatively impact your score. This includes applying for multiple new credit cards or loans simultaneously, closing old credit accounts (which can hurt your utilization ratio and the length of your credit history), or missing even a single payment. Also, be wary of credit repair scams that promise quick fixes; legitimate credit improvement takes time and consistent responsible behavior.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Delaying reporting fraud	Further financial losses, difficulty disputing charges, potential identity theft	Report any suspicious activity to your bank immediately upon discovery.
Not gathering transaction details	Incomplete report, delayed investigation, potential missed fraudulent charges	Compile dates, amounts, merchant names, and any other relevant information before contacting the bank.
Calling general customer service for fraud	Delays, misdirection, less efficient resolution	Use the specific fraud department phone number found on your card or bank’s website.
Not explicitly stating “fraud”	Misunderstanding of issue, potential for incorrect processing	Clearly tell the bank representative you are reporting “unauthorized transactions” or “fraud.”
Failing to follow bank dispute procedures	Investigation stalled, inability to recover funds, accounts remain vulnerable	Complete all required forms, provide requested documentation, and follow up as instructed by the bank.
Not securing compromised accounts	Risk of further fraudulent activity, ongoing identity theft	Change passwords, PINs, and consider closing and reopening accounts as advised by your bank.
Neglecting to monitor accounts after fraud	New fraudulent activity may go unnoticed, leading to repeated losses	Set up transaction alerts and regularly review your statements for any suspicious activity for several months.
Sharing personal information with unknown sources	Identity theft, unauthorized account access, further financial fraud	Never share your account numbers, passwords, or Social Security number with anyone who contacts you unexpectedly. Verify legitimacy.
Ignoring small, suspicious transactions	May be a test charge before larger fraud, or part of a pattern	Treat all unrecognized charges seriously, regardless of their size, and investigate them.
Trusting unsolicited offers of credit help	May be a scam, costing you money and not improving your credit	Work with reputable financial institutions and government-approved credit counseling services.

Decision rules (simple if/then)

• If you see a transaction you don’t recognize on your bank statement, then contact your bank immediately because prompt reporting is crucial for recovery.
• If you suspect your debit or credit card has been lost or stolen, then call your bank’s fraud department right away because they can immediately freeze the card to prevent further unauthorized use.
• If you receive an unsolicited email or text asking for your bank account details, then do not click any links or reply because it is likely a phishing attempt to steal your information.
• If your bank requests documentation or an affidavit regarding fraudulent charges, then provide it promptly because completing these steps is essential for their investigation.
• If your bank closes and reissues your card due to fraud, then update any automatic payments linked to the old card number because missed payments can negatively impact your credit score.
• If you discover multiple unauthorized transactions across different accounts, then consider changing passwords for all your online financial accounts because your credentials may have been compromised.
• If a fraudulent charge appears on your credit card statement, then dispute it with the credit card company because federal law provides strong protections for credit card fraud.
• If you believe your entire identity may have been compromised, then consider placing a fraud alert or credit freeze with the major credit bureaus because this can prevent new accounts from being opened in your name.
• If you are unsure about a transaction’s legitimacy, then err on the side of caution and contact your bank because it’s better to be safe than sorry when it comes to financial security.
• If the fraud involves a significant amount or you suspect a larger criminal operation, then you may want to file a police report as advised by your bank because this can be helpful for documentation.

FAQ

How quickly should I report fraud to my bank?

Report any suspected fraud to your bank or credit card issuer immediately. The sooner you report it, the better your chances of recovering lost funds and preventing further unauthorized activity.

What if I can’t identify a specific transaction on my statement?

If you see a charge you don’t recognize but can’t recall details, still contact your bank. They can help you identify the merchant or provide more information to aid your memory or confirm it as fraud.

What happens to my money if fraud occurs?

Banks and credit card companies have specific procedures for investigating and resolving fraud claims. While the process can vary, you are generally protected from liability for unauthorized transactions, especially on credit cards.

Can I get my money back if fraud happens?

In most cases, yes. Banks and credit card issuers work to recover funds lost to fraud. The Electronic Fund Transfer Act (for debit cards) and the Fair Credit Billing Act (for credit cards) provide consumer protections.

Do I need to file a police report for bank fraud?

Not always. Your bank will guide you on whether a police report is necessary for their investigation. For smaller incidents, it might not be required, but for larger or more complex cases, it can be helpful.

What if the fraud happened online?

The reporting process is similar. You’ll still contact your bank’s fraud department and provide details about the online transaction. Be sure to also secure your online accounts by changing passwords.

How long does a fraud investigation typically take?

The duration varies depending on the complexity of the case and the bank’s internal processes. Investigations can take anywhere from a few days to several weeks or even months.

Will reporting fraud affect my credit score?

Reporting fraud itself generally does not negatively impact your credit score. However, if fraudulent activity leads to missed payments or accounts being sent to collections before being resolved, that could affect your score.

What if I find fraud on a joint account?

All account holders should be aware of and report fraud. The primary account holder should contact the bank, and it’s advisable for all authorized users to review their own financial activities as well.

What this page does NOT cover (and where to go next)

• Specific legal statutes and regulations regarding fraud in every state.
• Next: Consult your state’s Attorney General’s office or consumer protection agency.
• Detailed instructions for every single bank and credit card company.
• Next: Refer to your specific financial institution’s website or contact their customer service.
• The process of recovering from widespread identity theft that extends beyond bank accounts.
• Next: Visit the Federal Trade Commission (FTC) website for comprehensive identity theft resources.
• Advanced cybersecurity measures for protecting your digital assets.
• Next: Explore resources on online security best practices from reputable technology and security organizations.
• How to dispute charges with merchants directly if the bank’s investigation is ongoing.
• Next: Understand your rights regarding chargebacks and merchant disputes.