What to Do If You’re a Victim of Bank or Credit Card Fraud

Discovering unauthorized transactions on your bank account or credit card can be a gut-wrenching experience. Whether it’s a small, suspicious charge or a wiped-out account, financial fraud can feel personal and overwhelming. The good news is that quick action can minimize damage and increase the chances of recovering lost money. Knowing what steps to take can make all the difference.

The first move is to contact your bank or credit card issuer immediately. Most financial institutions have 24/7 fraud departments that can freeze your card or account to prevent further unauthorized transactions. If your debit card was compromised, your bank might issue a temporary credit while investigating. For credit cards, federal law limits your liability to $50—often, banks waive even that amount if fraud is reported quickly.

Reviewing your account statements and transaction history is essential. Fraudsters sometimes start with small, seemingly random purchases to test if a card is active before making larger transactions. If you spot one fraudulent charge, there could be others. Many banks offer instant transaction alerts, which can help you catch suspicious activity earlier in the future.

Filing a fraud report with the Federal Trade Commission (FTC) adds an extra layer of protection. The FTC won’t investigate individual cases but provides an official record of the fraud, which can be helpful when working with your bank or law enforcement. You can report fraud at IdentityTheft.gov, which also offers steps tailored to different types of financial fraud.

For cases involving identity theft—such as new credit accounts opened in your name—placing a fraud alert on your credit report is a smart move. This notifies lenders to take extra precautions before approving new credit applications. You can request a fraud alert for free through one of the three major credit bureaus (Equifax, Experian, or TransUnion), and they’ll automatically notify the others. In more severe cases, freezing your credit can prevent further damage.

Changing your passwords and enabling two-factor authentication (2FA) adds another layer of security. If your bank or credit card information was stolen online, there’s a chance your login credentials were compromised as well. Using strong, unique passwords and 2FA can help prevent future fraud, especially if your personal data was exposed in a data breach.

Recovering from financial fraud takes time, but staying proactive reduces the risk of it happening again. Reviewing your credit report, keeping an eye on your accounts, and being cautious with personal information can prevent future incidents. Scammers are always looking for new ways to exploit vulnerabilities, but a combination of awareness and quick action can keep your finances secure.