How to report credit card fraud
Key takeaways
- Credit card fraud involves unauthorized use of your credit account, whether through phishing, skimming or theft.
- If you suspect fraudulent activity, immediately contact your credit card issuer, change your passwords and update payment methods to avoid liability.
- Knowing how to protect yourself by reviewing statements, setting up mobile alerts and freezing your credit reports can prevent future fraud.
You’re not alone if you’ve recently dealt with credit card fraud. According to the 2023 Consumer Sentinel Network Data Book, credit card fraud was the most common form of identity theft reported in 2023, with over 416,582 reports from people whose credit card information was misused.
Knowing how to spot suspicious credit card charges is the first step toward protecting yourself from fraud and minimizing potential financial damage. Let’s examine how to identify credit card fraud and how to report it to stop unauthorized credit card charges.
What is credit card fraud?
Any time a credit account is used without the owner’s knowledge or consent, that account is being used fraudulently. If you fall for a phishing email and unusual charges appear on your credit card account, that’s credit card fraud. If you swipe your card at a gas station without realizing you just inserted your card into a credit card skimmer, that’s credit card fraud. If a family member or roommate steals your credit card and goes on a shopping spree, that’s credit card fraud. If you borrow your spouse’s credit card without their permission, you might be committing credit card fraud yourself unwittingly.
Sometimes, this kind of fraud happens on a massive scale. For example, The Marriott security breaches from 2014 to 2020 put millions of people at risk of identity theft. Fraudsters often create targeted scams to trap people one at a time. No matter how the fraud happens, the result is pretty much the same: Once a hacker or scammer has access to your credit card number and/or personal information, they can use that information to make purchases on your existing credit cards or take out new lines of credit under your name.
How to report credit card fraud
If you suspect credit card fraud, know your rights. Most credit card issuers offer zero fraud liability on unauthorized charges — but you still have to know how to stop unauthorized credit card charges before you can take advantage of that protection. Here are four steps you can take to report credit card fraud and protect yourself against multiple fraudulent transactions on the same credit card account.
1. Contact your credit card issuer
In some cases, your credit card issuer will contact you first. For example, you might receive an email or a mobile alert asking if a recent charge looks familiar. In other cases, you’ll need to report an unusual or suspicious charge yourself by calling the number on the back of your credit card.
The Fair Credit Billing Act states that you must report fraudulent charges within 60 days of receiving the billing statement containing the suspicious charge. In other words, if you receive your credit card statement on the first of the month, you have 60 days from that date to report any potentially fraudulent charges.
However, it’s a good idea to contact your credit card issuer as soon as you notice any unusual activity on your card. If you dispute the charge promptly, you may also be eligible for a refund. So, be sure to regularly review monthly statements or check recent transactions in your online account.
“We keep our gas card in the console of our car, changing it out to be whatever card earns the most in a given month or quarter. One morning, we came outside to find our garage door open and that someone had rifled through our car,” Brooklyn Lowery, a credit cards expert and Senior Editor at Bankrate, shares on how she handled credit card fraud after a theft. “They didn’t take anything except that one credit card. From about midnight the night before through 3 a.m., they’d made several purchases at local gas stations.
We immediately called Chase — who had sent fraud alerts overnight while we were sleeping. The customer service rep asked a couple of questions to verify which purchases were fraudulent, canceled the card and put in a request to have a new one sent to me. The phone call lasted five minutes, and we didn't lose any of the roughly $250 that had been fraudulently charged. It was a simple process that made the sting of someone stealing from us hurt a little bit less.— Brooklyn Lowery, Senior Credit Cards Editor at Bankrate
2. Change your passwords
After notifying your credit card issuer that you suspect your account has been compromised, changing your passwords is a good idea. Start by changing the password associated with the credit card in question — then consider changing the passwords on any websites or accounts on which that credit card is stored as a method of payment. If you can implement two-factor authentication on your accounts, now’s a good time to set it up. These security measures will help protect you from repeated credit card fraud.
3. Update mobile wallets and online accounts
When you report credit card fraud, your credit card issuer is likely to cancel your current credit card and send you a new card with a new credit card number. After your new credit card arrives, take the time to update your mobile wallets and online accounts — especially if you have automatic payments set up. That way, you won’t accidentally fall behind on a subscription or bill. If you used your old credit card to make purchases on sites like Amazon, update those payment methods as well.
4. Notify law enforcement
If you suspect credit card fraud, especially in cases involving significant financial loss or identity theft, it’s important to notify law enforcement. Here’s how:
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File a police report: Visit your local police station or file a report online. Provide all relevant details, including suspicious transactions and any evidence of fraud.
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Report to the Federal Trade Commission (FTC): The FTC collects data on fraud cases and can assist in resolving identity theft issues.
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Contact your state’s attorney general: Many states have dedicated resources to reporting and combating fraud.
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Keep records: Document all communications with law enforcement and financial institutions for future reference.
How to protect yourself from credit card fraud
Knowing how to report credit card fraud is one thing — but how do you protect yourself from credit card fraud in the first place? Here are three ways to keep an eye on your credit cards and make it harder for thieves to make purchases in your name.
Review your credit card statements
The best way to protect yourself from credit card fraud is to review your credit card statements every month. Even if you regularly log into your credit card app to check your available credit or review posted transactions, reading your credit card statement every time it hits your inbox or mailbox is still a good idea.
When you review your credit card statement, take a close look at each of the transactions associated with your account. Do any purchases look unusual or suspicious? If you suspect one or more of the charges on your account might be fraudulent, contact your credit card issuer immediately.
Set up mobile alerts
Setting up mobile alerts is another good way to protect yourself from credit card fraud. When you activate mobile alerts on your credit card account, your credit card issuer will notify you whenever a suspicious charge is posted to your account. Then, you’ll have the option to let your issuer know whether you made the charge yourself or whether it might be fraudulent.
Fraud protection isn’t the only benefit you’ll get by setting up mobile alerts. Mobile alerts can remind you when your next credit card payment is due and let you know when your most recent payment has gone through. You can also receive notifications every time your account reaches a certain balance — or every time you purchase a specific dollar amount. You can even get a notification whenever a new charge is on your card.
Freeze your credit reports
Protecting your current credit accounts from fraud is an important step — but what if identity thieves try to take out new lines of credit under your name? The best way to protect yourself from this kind of credit card fraud is by freezing your credit reports.
When your Equifax, Experian and TransUnion credit reports are frozen, anyone who tries to open a credit card or apply for a loan under your name will be declined. This prevents identity thieves from taking out credit cards or loans under your name, but it also prevents you from opening new lines of credit. So, if you want to apply for a new credit card, shop for a mortgage or take out a personal loan, you’ll need to thaw your credit freeze first.
The bottom line
Nearly all credit card fraud schemes, from phishing scams to card skimming, have the same result: Someone else is making fraudulent purchases on your credit card account. Knowing how to report credit card fraud and stop unauthorized credit card charges can help protect you from having to pay for someone else’s fraudulent charges. Taking steps to prevent credit card fraud can help protect you from dealing with these headaches in the future.
Frequently asked questions about reporting credit card fraud
