Stolen items continue to be the main source of identity fraud in the U.S., but even if your credit or debit card never leaves your sight, you could still become a victim of fraud or identity theft.
If your card goes missing or you find suspicious charges on an account, BBB offers the following advice to resolve the issue as quickly as possible:
Step One: Contact the Issuer.
Credit card companies typically have a 24-hour hotline for consumers to report fraud and theft. By law, a consumer’s maximum liability is $50 per credit card; once the loss or theft of a credit card is reported to the issuer, consumers have no further responsibility for unauthorized charges. If the fraud involves a credit card number, but not the card itself, consumers have no liability for unauthorized use. If an ATM or debit card is lost or stolen, alerting the card issuer sooner than later reduces the amount of time the thief is able to charge on the account.
Step Two: Contact the Authorities.
If a credit or debit card has been stolen, or there are fraudulent charges on an account, file a report with the local police. Consumers will need a copy of the police report to confirm the nature of the fraudulent charges with the card issuer and credit reporting bureaus.
Step Three: Contact the Credit Reporting Bureaus.
There are three credit bureaus that monitor activity on consumer credit accounts:
The credit reporting bureaus can flag or place an alert on an account for fraudulent activity, which requires that the cardholder be contacted before any new lines of credit are opened in their name. Consumers can also ask to have an account frozen, which means their credit history can’t be reviewed by lenders and prevents new lines of credit from being opened—but keep in mind it may take several days to unfreeze the accounts.
Step Four: Stay Vigilant.
Follow up calls to the credit card issuer and credit reporting bureaus by outlining key details, including the date the loss or fraud was reported to issuer and bureaus in writing. Victims of ID theft can receive a free copy of their credit reports and should review reports from all three bureaus for any suspicious activity. Consumers should continue to keep a close eye on their credit card statements, bank accounts, and credit reports well into the future for any suspicious activity.