What credit card fraud is and why it matters to your credit
Credit card fraud is when someone uses your card number, expiration date, or other card details to make purchases or withdrawals without your permission. The fraud itself — the unauthorized charge — is not your legal responsibility. But how you respond to it directly affects whether it damages your credit score and how much time you spend fixing it.
The real danger is not the single fraudulent charge. It is that a thief with your card details can open new accounts in your name, rack up debt you did not create, and leave you fighting with creditors and credit bureaus for months. That is why catching fraud early and reporting it the right way matters more than the dollar amount stolen.
Your card issuer — the bank or credit union that issued your card — has strong incentive to resolve this quickly. Federal law caps your liability at $50 if you report the fraud within 60 days of the statement showing the unauthorized charge. If you wait longer, your liability can climb. If you never report it, you could be on the hook for the full amount.
Key Takeaways
- Report fraudulent charges to your card issuer within 60 days of the statement date to limit your liability to $50 under federal law.
- Call the phone number on the back of your card or your statement, not a number you find online, to avoid reaching a scammer.
- Your card issuer will issue a new card and investigate the charge; you are not responsible for paying it while they investigate.
- Check your credit reports at annualcreditreport.com for accounts you did not open, which signals identity theft beyond card fraud.
- Place a fraud alert with the three credit bureaus (Equifax, Experian, TransUnion) if a thief opened accounts in your name.
The difference between card fraud and identity theft
Card fraud and identity theft are related but not the same. Card fraud is someone using your existing card or card number. Identity theft is someone using your personal information — name, Social Security number, date of birth — to open new accounts, take out loans, or commit other crimes in your name.
A thief who has your card number might commit card fraud alone. But if they also have your Social Security number, they can commit identity theft by opening a credit card, taking out a car loan, or renting an apartment in your name. Identity theft is harder to catch and takes longer to fix because the damage spreads across multiple creditors and credit bureaus.
The first sign of identity theft is often an account on your credit report that you did not open. That is why checking your credit reports regularly — at least once a year — is your best early warning system.
How to report fraud to your card issuer
Call the number on the back of your card or on your most recent statement. Do not search online for the number; scammers sometimes create fake bank websites that look real. The back of your card is the safest source.
Tell the representative that you see a charge you did not make. Have your statement in front of you so you can give the exact amount, date, and merchant name. The representative will ask you to confirm recent legitimate charges to verify you are the cardholder. They will then cancel your card and order a replacement.
You will not pay the fraudulent charge while the issuer investigates. The charge will be removed from your account, usually within one to three billing cycles. The issuer will send you a written explanation of the investigation and its outcome. Keep this letter; you may need it if the merchant or a debt collector later tries to collect.
What happens after you report the fraud
Your card issuer will assign an investigation number and a case manager. They will contact the merchant where the fraud occurred and request transaction details, security footage if available, and proof that the charge was unauthorized. This process usually takes 30 to 90 days.
During the investigation, the fraudulent charge stays on your statement but is marked as disputed. It does not count against your available credit, and you should not pay it. Your new card will arrive within 7 to 10 business days. Use it for new purchases while the investigation continues.
Once the investigation closes, the issuer will send you a final letter. If they determine the charge was unauthorized, it will be removed from your account permanently. If they determine you authorized it, you will be responsible for paying it — but this is rare if you reported it promptly and clearly.
Checking your credit reports for accounts you did not open
Go to annualcreditreport.com, the official site run by the three credit bureaus (Equifax, Experian, and TransUnion). You can order one free report from each bureau every 12 months. Order all three at once or spread them out over the year to monitor your credit continuously.
Look for accounts you do not recognize — credit cards, auto loans, personal loans, or retail cards opened in your name. Look also for hard inquiries from creditors you did not contact. These are signs that a thief used your identity to borrow money.
If you find an account you did not open, do not close it yourself. Instead, contact the creditor directly and report it as fraud. Ask them to close the account and remove it from your credit report. Then place a fraud alert with the credit bureaus (see next section).
Placing a fraud alert and credit freeze
A fraud alert tells creditors to verify your identity before opening new accounts in your name. You place it by contacting one of the three credit bureaus; they are required to notify the other two. The alert lasts one year and is free.
Call Equifax at 1-800-525-6285, Experian at 1-888-397-3742, or TransUnion at 1-800-680-7289. Tell them you suspect identity theft and want to place a fraud alert. They will ask for your name, address, date of birth, and Social Security number. You will receive a confirmation number and a copy of your credit report.
A credit freeze is stronger than a fraud alert. It locks your credit file so that no creditor can see it without your permission, making it nearly impossible for a thief to open accounts. You can place a freeze for free with all three bureaus. It lasts until you remove it, though you can temporarily thaw it when you need to borrow money.
Documenting everything and keeping records
Create a folder — physical or digital — and keep every piece of paper related to the fraud. This includes your original statement showing the fraudulent charge, the case number from your card issuer, the investigation letter, the final resolution letter, and any correspondence with credit bureaus or other creditors.
Write down the date you reported the fraud, the name of the representative you spoke with, and what they told you. If you place a fraud alert or freeze, save the confirmation number and the date. If a debt collector later contacts you about a fraudulent account, you will have proof that you reported it and when.
Keep these records for at least three years. Fraud can resurface, and having documentation makes it faster to resolve a second incident.
Frequently Asked Questions
Will fraud on my credit card hurt my credit score?
The fraudulent charge itself will not hurt your score because you are not responsible for paying it. But if a thief opened new accounts in your name and missed payments on them, those missed payments will damage your score. That is why checking your credit reports for unauthorized accounts is critical.
How long does it take to get my money back?
Your card issuer will remove the fraudulent charge from your account within one to three billing cycles, usually 30 to 60 days. You will not be charged interest or late fees on the disputed amount while they investigate. Once removed, the money is back in your account.
What if the fraud happened more than 60 days ago?
You can still report it, but your liability may exceed $50. Contact your card issuer when ready and explain when you discovered the fraud. Many issuers will still investigate and remove the charge even if you are outside the 60-day window, especially if you have a good account history.
Can I use my card while the fraud is being investigated?
Your old card will be cancelled when ready. Your new card will arrive within 7 to 10 business days. Use the new card for purchases. The fraudulent charge on the old card will not affect your ability to use the new one.
What should I do if I find multiple fraudulent charges?
Report all of them in the same call to your card issuer. Give the representative the date, amount, and merchant for each charge. The issuer will investigate all of them together and cancel your card once. This is faster than reporting them separately.