How to Handle Fraudulent Activity on Credit Cards
Credit card fraud costs hundreds of millions of dollars each year to cardholders and card issuers, according to the Federal Trade Commission. Regardless of how careful you try to be, it is impossible to protect yourself 100 percent against credit card fraud. One of the most important things you can educate yourself about is how to handle fraudulent activity on credit cards once it is discovered. Federal law mandates that once the fraud is reported to the card issuer, you are no longer responsible for any fraudulent charges. Federal law also mandates that the maximum amount of responsibility you have for fraudulent charges is $50.
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Instructions
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Call the credit card issuer as soon as you discover the fraudulent charges. Check your original paperwork, a monthly statement, or the credit card company's website for a toll free number to report credit card fraud. Most credit card issuers are available 24/7 for fraud reporting.
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Check your other credit card accounts to see if the fraud is an isolated incident or if your entire credit line has been compromised. Check your bank account to ensure your debit card is not also fraudulently in use.
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Transfer monthly drafts that are charged to the credit card in question to a safe credit card, or pay the account in another manner for the month and notify the vendor that you will provide a new credit card number for future drafts as soon as you receive your replacement card.
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Tips & Warnings
Review monthly statements as soon as they arrive or log into your account online and periodically review the charges.
Pay attention when using your card for charges so that you do not accidentally forget the card with a vendor.
Destroy carbon copies with your credit card number on them.
Keep a list of all your credit accounts, numbers and an emergency phone number for the creditor in a secure place in your home.
Never sign a blank receipt.
Never give out your account number over the phone unless you are sure of the security of the vendor with whom you're speaking.
