In a Nutshell
If you’re a victim of credit card fraud, it’s important to monitor and report any suspicious activity. We’ve outlined the steps you need to take to protect yourself and your money.Nobody wants to find out they’ve become a victim of credit card fraud, and finding suspicious purchases on your card can be worrisome.
While some people may never experience credit card fraud, it happens every day. You may find yourself wondering how and where somebody compromised your card. Was it that gas station in the middle of nowhere? Maybe that online store you bought some clothes from? The truth is that it can be hard to tell.
Retailers may store your credit card information, so if their data networks are breached, your info could be compromised. Even if you haven’t used your card in months, it’s important to monitor your financial accounts regularly.
All of this may sound scary, but there is some good news. In most cases, credit card companies have safeguards designed to help protect you and your purchases from credit card fraud.
Perhaps the most prominent of these safeguards is the EMV chip — that small silver- or gold-colored chip embedded on the face of most new credit cards. Small but mighty, this chip’s processing method makes your transactions more secure and may help to reduce credit card fraud.
Unfortunately, EMV chips haven’t completely solved the problem of credit card fraud. So, what if you find yourself looking at charges on your card that you definitely didn’t make?
Don’t panic. Instead, take a deep breath and start getting a game plan together. We’ve rounded up important tips on what to do next.
5 steps to take if you’re a victim of credit card fraud
- Call your credit card company immediately
- Check your credit card accounts and change your passwords
- Notify the credit bureaus and call the police if necessary
- Monitor your statements and credit reports
- Check your online shopping accounts
1. Call your credit card company immediately
First and foremost, it’s important to get ahead of the people using your card before they can inflict more damage.
Major card networks like Visa and Mastercard have zero-liability policies designed to ensure that you won’t be held responsible for unauthorized charges made with your credit or debit card or account information. The same goes for credit card issuers like Citi, which promises $0 liability for unauthorized charges on all its cards.
Even if your credit card info is compromised and your credit card company doesn’t have a zero liability policy in place, your liability for credit card fraud is limited to $50 under the Fair Credit Billing Act.
Still, it pays to be vigilant. As soon as you notice charges you don’t recognize, call your credit card company. It’ll likely issue you a new card with a new card number and investigate the charges immediately.
2. Check your credit card accounts and change your passwords
Your best bet is to exercise caution. After you call your credit card company, make sure you check all of your other credit card accounts to see if they’ve also been compromised.
Even though only one card may have suspicious charges, you can’t be sure how the fraudster got the information. So make sure you change all of your passwords and PINs just to be safe.
3. Notify the credit bureaus and call the police if necessary
Filing a police report is especially crucial if you see a pattern of fraudulent charges in the days following the first signs of suspicious activity. Sometimes credit card fraud can happen all at once, and other times it might be days or weeks apart.
If you notice multiple credit cards or financial accounts being used without your knowledge, contact the major credit bureaus to alert them and request a credit freeze. This can help stop criminals from doing further damage, like opening up a new credit card.
After you’ve done that, call the police and file a report. If you notice a pattern of credit card fraud, the police can use your records to open an investigation.
Serious identity theft could lead to more than a simple case of credit card fraud. For example, if someone steals your wallet, the thief could potentially use your credit, insurance and identification cards to open utility and credit accounts in your name.
Identity theft should also be reported to the Federal Trade Commission. It can assist you in developing a “recovery plan” to prevent further loss and get things squared away with the police and credit bureaus as necessary.
4. Monitor your statements and credit reports
After the first signs of credit card fraud, you’ll want to keep monitoring your credit card statements for a few months. Fraudulent charges can keep appearing on your card statements months after your card information is stolen if there was any additional information, such as login credentials, that may have been compromised.
Credit Karma can also help when it comes to staying on top of your credit reports. You can sign up for free and get access to your credit reports from two of the major credit bureaus, TransUnion and Equifax. Your reports can be updated as often as once a week, and you can check them for free anytime. Credit Karma offers free credit monitoring in addition to free VantageScore 3.0 credit scores and reports from two of the three major credit bureaus.
Check purchases on your credit cards every day, and consider signing up for alerts from your issuer each time there’s a transaction on your card.
5. Check your online shopping accounts
It’s fairly common for websites to let you save your card information for future purchases. Even if you’re protected by your credit card company’s zero-liability policy, it’s important to make sure your accounts haven’t been compromised.
Remove the compromised card (as well as any other stored cards) in case your account is no longer secure, and change those passwords as well.
Image: ccupdatefraud-1FAQs about credit card fraud
The primary difference between credit card fraud and identity theft is that credit card fraud typically involves a single credit account. If someone steals your identity, the potential for damaging your credit history can be much greater because someone can open numerous lines of credit in your name.
If you see a transaction on your credit card that you’re certain you didn’t make, you may be a victim of credit card fraud. This means your card information could have been stolen by hackers through a website or even a physical location.
Fraudsters can steal credit card information remotely through a variety of techniques: They can steal info that’s saved on websites, access card details through point-of-sale terminals, trick you into sharing personal information and more. To avoid fraud, make sure to keep your passwords and personal information as secure as possible. Educate yourself about phishing, and never share details about your personal life with somebody you don’t trust.
Bottom line
While anybody can be a victim of credit card fraud, nobody has to have their life or even day ruined because of it. These tips can help you stay on top of all your credit card activity, which is a great weapon to tackle credit card fraud.
As we continue to use credit cards more and more, credit card fraud will surely continue. The important thing to remember is that you’re not alone in this fight. You can rest easier knowing there are plenty of tools to help you if you’re ever a victim. Of course, you can also help yourself by keeping your accounts secure with strong passwords and regular monitoring.