Discovering fraudulent charges on your credit card can be alarming, but acting quickly can help minimize the damage. If you notice unauthorized charges on your credit card, following these steps will help you resolve the issue and safeguard your account from further fraud.
- Verify the Transaction
Before assuming a charge is fraudulent, take a moment to verify the transaction. Sometimes, legitimate purchases may appear under unfamiliar merchant names or locations. Review your recent purchases to see if the charge might be related to a service or company you used. If the charge remains unfamiliar after your review, it’s time to take further steps to address the potential fraud.
- Contact Your Credit Card Issuer Immediately
If you’re certain that the transaction is fraudulent, contact your credit card issuer right away. Most card issuers have 24/7 fraud hotlines for reporting unauthorized charges. Inform them about the fraudulent transaction, and they will usually place a hold or block on your card to prevent further unauthorized activity. Your issuer will also issue a new card with a different account number.
Federal law, under the Fair Credit Billing Act (FCBA), limits your liability for fraudulent credit card transactions to $50, but many credit card companies offer zero liability policies, meaning you won’t be responsible for any fraudulent charges if reported promptly.
- Review All Recent Transactions
After reporting the fraudulent charge, it’s essential to review all recent transactions on your credit card statement. Scammers often make small, seemingly insignificant charges to test your card before making larger purchases. If you notice any additional unauthorized transactions, report them to your card issuer immediately.
Make sure to keep track of any unusual activity on all of your accounts to catch potential fraud across multiple cards.
- Change Your Account Passwords and Monitor Your Credit
As a precaution, change your online banking and credit card account passwords after discovering fraudulent activity. If your card details were compromised through an online breach or phishing attack, your account may still be at risk, even after closing the affected card.
In addition to changing passwords, consider enabling two-factor authentication (2FA) for added security. This requires you to verify your identity using a secondary method, such as a text message or authentication app, before accessing your account.
It’s also wise to monitor your credit report for signs of identity theft. You can get free copies of your credit reports from Equifax, Experian, and TransUnion annually, and you should review them regularly for any signs of fraudulent accounts or credit inquiries.
- Dispute the Fraudulent Charge in Writing
While most credit card issuers will resolve fraudulent charges promptly, it’s a good idea to dispute the charge in writing for added protection. Under the FCBA, you have the right to formally dispute fraudulent charges within 60 days of the statement date. Send a letter to your card issuer explaining the fraudulent transaction, including your account number and supporting documentation.
Most credit card companies will investigate the claim and remove the fraudulent charge from your statement. Make sure to keep copies of all communication with your credit card issuer for your records.
- Set Up Alerts and Monitor Your Accounts
To prevent future fraud, set up transaction alerts through your credit card issuer. These alerts can notify you via email or text message when a purchase is made on your card, giving you real-time updates on any unusual activity.
Regularly monitoring your accounts is also key. Review your credit card statements monthly and check your bank accounts for any unusual withdrawals or charges. Identity theft protection services can also offer monitoring tools that help you spot fraudulent activity early and provide assistance in the event of future fraud.
Seek Legal Help if Needed
If you’re struggling to resolve credit card fraud or believe that the breach may have been part of a larger identity theft case, you may need legal assistance. At the Law Office of Ali Fesh, we specialize in helping victims of financial fraud and identity theft recover their losses and protect their credit. If you’re dealing with fraudulent credit card transactions, contact us for a consultation to discuss your legal options.
Stay Vigilant Against Credit Card Fraud
Spotting fraudulent credit card transactions early and acting quickly can limit the damage and restore your financial security. Follow these steps to ensure that unauthorized charges are removed from your account and that your credit card information stays protected.
