What To Do If You Suspect Credit Card Fraud

Quick answer

• Act immediately: The sooner you report fraud, the less liability you’ll have.
• Contact your credit card issuer directly using the number on the back of your card or their official website.
• Review your recent transactions carefully for any unfamiliar charges.
• File a police report if the fraud involves identity theft or significant financial loss.
• Monitor your credit reports closely for any further suspicious activity.

What to check first (before you act)

Credit report accuracy

Before assuming fraud, it’s crucial to ensure your credit reports accurately reflect your spending. Errors can happen, and a charge you don’t recognize might be a legitimate one you simply forgot or a billing error from a merchant.

Utilization and balances

High credit utilization can sometimes lead to confusion or attract unwanted attention. While not directly indicative of fraud, understanding your current balances and how they relate to your credit limits is part of a comprehensive financial review.

Payment history

A missed payment or a late fee can sometimes appear as an unexpected charge. Double-checking your payment history and ensuring all your bills are up-to-date can help rule out simple administrative errors before escalating to fraud concerns.

Recent inquiries

Numerous recent inquiries for credit can sometimes be a sign of someone attempting to open new accounts in your name. While not a direct charge, it’s a related red flag for potential identity theft that often accompanies credit card fraud.

Time horizon

Consider the timeframe of the suspicious activity. Was it a single, isolated charge from a few months ago, or a series of recent, unauthorized transactions? The pattern and recency can provide clues about the nature and urgency of the situation.

Step-by-step (credit card fraud how to workflow)

1. Review your most recent statements:

• What to do: Log in to your online account or review your paper statements. Scrutinize every transaction, looking for any charges you don’t recognize or that seem out of place.
• What “good” looks like: You can account for every single transaction listed.
• Common mistake: Only checking the total balance and not reviewing individual line items. Avoid this by making it a habit to check each charge.

2. Gather details of suspicious charges:

• What to do: Note the date, merchant name, and amount of each suspicious transaction. Take screenshots if possible.
• What “good” looks like: You have a clear, documented list of all potentially fraudulent charges.
• Common mistake: Vaguely remembering a charge without specific details, making it harder for the issuer to investigate. Be precise.

3. Contact your credit card issuer immediately:

• What to do: Call the customer service number on the back of your credit card or visit their official website to find the fraud department contact information. Do NOT use a number from a suspicious email or text.
• What “good” looks like: You are speaking directly with a representative from your card issuer’s fraud department.
• Common mistake: Waiting too long to report the fraud, which can limit your protections. Prompt reporting is key.

4. Explain the situation clearly:

• What to do: Provide the representative with the details you gathered in step 2. State clearly which charges you did not authorize.
• What “good” looks like: The representative understands which transactions are in dispute and begins the investigation process.
• Common mistake: Being unclear about which charges are fraudulent, leading to delays. Be specific about each unauthorized transaction.

5. Ask about your liability:

• What to do: Inquire about your zero-liability policy. For most major credit cards, you are not responsible for unauthorized charges.
• What “good” looks like: You receive confirmation that you will not be held responsible for the fraudulent activity.
• Common mistake: Assuming you know your liability without confirming it, potentially leading to unexpected costs. Always ask for clarification.

6. Request a new card and updated account information:

• What to do: The issuer will likely cancel your compromised card and issue a new one with a different account number. Ensure your billing information is updated with any legitimate recurring payments.
• What “good” looks like: You have a new card on its way and your account is secured.
• Common mistake: Forgetting to update automatic payments linked to the old card number, which can lead to further issues. Keep a list of where your card is used automatically.

7. Change your online account passwords:

• What to do: If you suspect your online banking credentials may have been compromised, change your passwords for your credit card account and any other financial accounts. Use strong, unique passwords.
• What “good” looks like: Your online accounts are secured with new, strong passwords.
• Common mistake: Using weak or reused passwords that can be easily guessed or cracked. Prioritize strong password hygiene.

8. Consider filing a police report:

• What to do: If the fraud is extensive or involves identity theft, filing a police report can be beneficial for your records and for further investigation.
• What “good” looks like: You have an official report number and documentation from law enforcement.
• Common mistake: Not filing a report when it could provide valuable documentation for insurance claims or identity theft resolution.

9. Monitor your credit reports:

• What to do: Obtain free copies of your credit reports from Equifax, Experian, and TransUnion at AnnualCreditReport.com. Review them for any other suspicious activity or accounts opened in your name.
• What “good” looks like: Your credit reports are free of any unauthorized accounts or inquiries.
• Common mistake: Not checking all three credit reports, as information can sometimes vary between bureaus.

10. Report identity theft if applicable:

• What to do: If you believe your personal information has been stolen and used for more than just credit card fraud, visit IdentityTheft.gov for guidance and resources.
• What “good” looks like: You have taken steps to report and mitigate identity theft through official channels.
• Common mistake: Treating credit card fraud as isolated when it’s part of a larger identity theft scheme, delaying comprehensive recovery.

What affects your score (plain language)

• Payment History: This is the most significant factor. Paying your bills on time, every time, is crucial. Late payments can severely damage your score.
• Credit Utilization Ratio: This is the amount of credit you’re using compared to your total available credit. Keeping this ratio low (ideally below 30%) is beneficial.
• Length of Credit History: The longer you’ve had credit accounts open and in good standing, the better. It shows lenders a longer track record of responsible behavior.
• Credit Mix: Having a variety of credit types (e.g., credit cards, installment loans like mortgages or auto loans) can be positive, showing you can manage different kinds of debt.
• New Credit: Opening many new credit accounts in a short period can be a red flag. It might suggest financial distress or a higher risk of default.
• Public Records: Negative information like bankruptcies or tax liens can significantly lower your score.

What NOT to do while improving credit:

Avoid closing old, unused credit cards unless there’s a compelling reason like a high annual fee. Closing accounts can reduce your overall available credit and shorten your average credit history length, both of which can negatively impact your score. Also, refrain from applying for multiple credit accounts simultaneously, as this can trigger numerous hard inquiries.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not reporting fraud immediately	Increased personal liability for fraudulent charges, difficulty in recovery.	Contact your card issuer the moment you suspect fraud. Most issuers offer zero liability for unauthorized transactions if reported promptly.
Using the wrong contact number for reporting	Delaying the investigation, potential for scams, not reaching the right department.	Always use the official customer service number on the back of your card or the verified number on the issuer’s official website. Avoid numbers from emails or texts about suspicious activity.
Not reviewing all transactions carefully	Missing other fraudulent charges, not understanding the full scope of the breach.	Make it a habit to review every transaction on your statement. Look for unfamiliar merchants, unusual amounts, or charges at odd times.
Failing to change passwords after a breach	Allowing continued access to your accounts by the fraudster.	If your account credentials might have been compromised, change your passwords immediately for that account and any other where you used the same or similar login information. Use strong, unique passwords.
Not requesting a new card number	The fraudster may continue to use the compromised card information.	Always ask your issuer to cancel the compromised card and issue a new one with a different account number to prevent further unauthorized use.
Ignoring recurring payments on a compromised card	Continued unauthorized charges or missed payments for legitimate services.	Keep a list of any automatic payments linked to your compromised card and update them with your new card information once it arrives.
Not checking all three credit reports	Missing fraudulent activity reported to only one or two credit bureaus.	Obtain free credit reports from Equifax, Experian, and TransUnion at AnnualCreditReport.com. Review each one thoroughly for any unfamiliar accounts or inquiries.
Assuming fraud is only about credit cards	Underestimating the scope of identity theft and not taking broader protective measures.	If personal information was stolen, consider reporting identity theft to the FTC at IdentityTheft.gov and taking steps to secure all your financial accounts.
Not filing a police report when necessary	Lack of official documentation for insurance or further legal action.	For significant fraud or identity theft, a police report provides crucial documentation. This can be helpful for disputes, insurance claims, or clearing your name if fraudulent activity leads to legal issues.

Decision rules (simple if/then)

• If you see a charge you don’t recognize on your credit card statement, then contact your credit card issuer immediately because prompt reporting limits your liability.
• If you receive an unsolicited email or text asking for your credit card details, then do not click any links or provide information because it is likely a phishing attempt.
• If your credit card is lost or stolen, then report it to your issuer immediately because they can block the card and prevent fraudulent charges.
• If you are a victim of identity theft, then file a report with the Federal Trade Commission (FTC) at IdentityTheft.gov because they provide a recovery plan and resources.
• If you have fraudulent charges on your account, then ask your credit card issuer about their zero-liability policy because most major cards offer this protection.
• If your credit card number has been compromised, then request a new card with a different account number because this prevents further unauthorized use of the old number.
• If you suspect your online banking credentials have been compromised, then change your password immediately because this secures your account from further unauthorized access.
• If you find unfamiliar accounts or inquiries on your credit report, then dispute them with the credit bureau because they are obligated to investigate and remove inaccuracies.
• If the fraud involves significant financial loss or identity theft, then consider filing a police report because it provides official documentation for your case.
• If you have recurring payments on a compromised card, then update your payment information with the new card details because this avoids missed payments and service disruptions.
• If you are unsure about a transaction, then contact the merchant directly (if you recognize them) or your card issuer if you do not, because clarifying the charge can prevent unnecessary fraud reports.

FAQ

How quickly do I need to report credit card fraud?

Report it immediately. The sooner you notify your credit card issuer, the better. Most credit card companies have zero-liability policies, meaning you won’t be held responsible for unauthorized charges if you report them promptly.

What is a zero-liability policy?

A zero-liability policy is a consumer protection offered by most credit card issuers. It means you will not be held responsible for unauthorized charges made on your card, provided you report them in a timely manner.

Can I be held responsible for fraudulent charges?

Generally, under federal law (like the Fair Credit Billing Act), your liability for unauthorized credit card charges is limited to $50. However, most major credit card companies offer $0 liability for fraudulent transactions if reported promptly.

What if the fraudster used my card for a recurring subscription?

If your card was compromised and used for recurring payments, you’ll need to contact your credit card issuer to dispute those charges and then update your payment information with your new card details for any legitimate subscriptions.

Should I file a police report for credit card fraud?

Filing a police report is recommended if the fraud is extensive, involves identity theft, or if your physical card was stolen. It provides an official record that can be helpful for your credit card company, insurance, or if further legal action is needed.

How do I get a new credit card number?

When you report fraud to your credit card issuer, they will typically cancel your compromised card and issue you a new card with a different account number. This is a standard procedure to prevent further unauthorized use.

What’s the difference between credit card fraud and identity theft?

Credit card fraud is when someone uses your credit card information without permission. Identity theft is broader; it’s when someone steals your personal information (like your Social Security number or date of birth) and uses it to impersonate you, which can include opening new credit accounts or committing fraud.

How can I prevent future credit card fraud?

Monitor your accounts regularly, use strong, unique passwords for online accounts, be cautious about sharing your card details, shred sensitive documents, and consider using credit monitoring services.

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

• Specific legal statutes and consumer protection laws in your state. Next, research your state’s consumer protection agency.
• Detailed instructions on disputing charges with merchants directly before involving your card issuer. Next, explore resources on the Consumer Financial Protection Bureau (CFPB) website.
• Strategies for recovering funds lost to sophisticated scams beyond simple credit card fraud. Next, look into resources for reporting and recovering from various types of financial scams.
• In-depth analysis of credit scoring models and how specific fraud events might impact your credit score long-term. Next, consult articles on credit score management and the impact of fraud.
• Guidance on international credit card fraud and reporting procedures. Next, check with your credit card issuer for their specific international protocols.