What do I do if someone uses my credit card without permission?

Unauthorized Charges? Your Action Plan for Credit Card Fraud

Discovering unauthorized charges on your credit card is alarming, but acting quickly and decisively can minimize the damage. Don’t panic – follow these steps to protect yourself and your finances.

1. Immediate Action: Contact Your Bank or Credit Card Provider IMMEDIATELY.

This is the single most critical step. Don’t delay. Call your bank or credit card company’s fraud department – you’ll usually find the number on the back of your card or on their website. Report the fraudulent activity, clearly stating the unauthorized charges and any suspicious transactions you’ve noticed. They will begin an investigation and likely immediately cancel your card to prevent further unauthorized access.

2. Document Everything.

Gather as much information as possible regarding the fraudulent charges. This includes:

• Date and time of each transaction: Be precise.
• Merchant name and location: Note where each transaction occurred.
• Amount of each charge: Record the exact amount for every suspicious transaction.
• Transaction ID (if available): This often appears on your online banking statement.
• Any relevant details: Did you receive any suspicious emails or text messages before the charges appeared? Note any unusual activity on your online banking account.

Keep a detailed record of all your communications with your bank, including dates, times, and names of representatives you spoke with.

3. Review Your Statements Regularly.

This proactive approach is crucial to preventing significant financial loss. Regularly checking your statements – ideally weekly or bi-weekly – allows you to identify fraudulent activity quickly. The sooner you spot unauthorized charges, the sooner you can take action.

4. Consider Placing a Fraud Alert or Security Freeze.

Contact one of the three major credit bureaus (Equifax, Experian, and TransUnion) to place a fraud alert or a security freeze on your credit report. A fraud alert flags your account for lenders, prompting them to verify your identity before granting credit. A security freeze is more restrictive, preventing access to your credit report entirely unless you authorize it. This can significantly reduce the risk of identity theft linked to the unauthorized charges.

5. File a Police Report.

While not always necessary for resolving the financial aspect, filing a police report provides official documentation of the fraudulent activity. This is especially important if the amount is significant or if you suspect identity theft. The police report can be helpful in future investigations or insurance claims.

6. Monitor Your Credit Report.

After resolving the immediate issue, regularly monitor your credit report for any further suspicious activity. You can obtain a free credit report annually from each of the three major credit bureaus.

7. Change Your Passwords.

Immediately change your online banking passwords and any other online passwords that might be connected to your financial accounts. Consider using a strong, unique password for each account.

By following these steps, you can effectively mitigate the impact of unauthorized credit card charges and protect yourself from future fraudulent activity. Remember, speed is of the essence. The quicker you act, the better the chance of recovering your funds and preventing further damage.