How fraud appears on your credit card and what your first steps should be
Credit card fraud happens when someone uses your card number, expiration date, or security code to make purchases without your permission. The charge appears on your statement just like a legitimate purchase, but you did not authorise it. Your card issuer — the bank or credit union that issued your card — is legally required to investigate and remove fraudulent charges from your account, though the process takes time and requires you to report the fraud first.
The moment you notice an unfamiliar charge, contact your card issuer directly using the phone number on the back of your card or on your statement. Do not use a phone number from an email or text message, because scammers sometimes send fake fraud alerts to trick you into calling them. Your issuer will ask you to confirm which charges are fraudulent and which are legitimate, then begin an investigation that typically lasts 30 to 60 days.
Key Takeaways
- Call your card issuer when ready using the number on your physical card or statement — not a number from an email or text — to report fraudulent charges.
- Your issuer will investigate and remove fraudulent charges from your account, though the process usually takes 30 to 60 days.
- Request a new card with a new number, and ask your issuer whether the fraud occurred online, in person, or through a data breach affecting multiple cardholders.
- Check your credit report at annualcreditreport.com for accounts opened in your name without your permission, which may indicate identity theft beyond the card itself.
- File a report with the Federal Trade Commission at reportfraud.ftc.gov if the fraud involved identity theft or if you want an official record for your records.
What happens during the investigation period
Once you report fraud, your card issuer places a temporary hold on the disputed charges — meaning they do not count against your credit limit or your available balance while the investigation is underway. You are not responsible for paying those charges during this time. The issuer contacts the merchant or the payment processor to verify whether the transaction was authorised, and they examine the transaction details like the location, time, and device used to make the purchase.
During the investigation, your card issuer may ask you to provide additional information: a copy of your statement, details about where you were when the charge occurred, or confirmation that you do not recognise the merchant. Answer these requests promptly, because delays can slow the investigation. If the issuer determines the charge was fraudulent, they remove it permanently and credit your account. If they determine you authorised it, they put the charge back on your account and notify you in writing with an explanation.
Getting a replacement card and preventing future fraud
Request a new card with a new number as soon as you report the fraud. Your issuer will cancel the old card and mail a replacement, which usually arrives within 7 to 10 business days. Until the new card arrives, you can still use your account for online purchases if your issuer provides a temporary card number, or you can pay bills by phone or through your online banking portal.
Ask your issuer how the fraudster obtained your card number. If the fraud occurred at a physical location, your card may have been skimmed — read by a hidden device at a gas pump, ATM, or checkout terminal. If it occurred online, your card number may have been stolen from a retailer's database or intercepted during a transaction. If multiple cardholders were affected, your issuer will tell you which company experienced the breach. This information helps you decide what to monitor going forward.
Checking your credit report for identity theft
Credit card fraud and identity theft are not the same thing. Fraud is a single unauthorised charge on your existing card. Identity theft is when someone uses your personal information — your name, Social Security number, or date of birth — to open new accounts in your name. A fraudulent charge on your card does not automatically mean your identity was stolen, but you should check to be sure.
Visit annualcreditreport.com and request your free credit report from all three bureaus: Equifax, Experian, and TransUnion. Review each report for accounts you do not recognise — credit cards, loans, or lines of credit opened in your name. If you find unauthorised accounts, contact the creditor when ready and ask them to close the account and remove it from your credit report. You can also place a fraud alert on your credit file by contacting any one of the three bureaus; they will notify the other two automatically. A fraud alert tells creditors to verify your identity before opening new accounts in your name.
Filing a report with the Federal Trade Commission
The Federal Trade Commission (FTC) maintains a database of fraud reports at reportfraud.ftc.gov. Filing a report is not required to dispute the charges on your card — your card issuer handles that — but it creates an official record that may help you if the fraud is part of a larger pattern or if you need documentation for other purposes.
The FTC report asks for details about how the fraud occurred, what information was compromised, and what steps you have already taken. The FTC does not investigate individual cases, but the data helps them identify fraud trends and take action against scammers operating at scale. If the fraud involved identity theft, filing an FTC report also gives you access to an Identity Theft Report, which you can use to dispute fraudulent accounts on your credit report and with creditors.
Protecting yourself from future fraud
After fraud occurs, take steps to reduce the risk of it happening again. Monitor your statements weekly instead of monthly — most card issuers offer free alerts that notify you by email or text when a charge is made, which lets you spot fraud within hours instead of days. Set up low-balance alerts so you are notified if your available credit drops unexpectedly.
Use strong, unique passwords for online shopping accounts and enable two-factor authentication whenever it is offered. Avoid using your debit card for online purchases; use a credit card instead, because credit card fraud is easier to dispute and you are not liable for unauthorised charges. When shopping in person, watch the card reader to make sure it is not a skimming device, and consider using contactless payment or a digital wallet like Apple Pay or Google Pay, which does not expose your full card number to the merchant.
What your card issuer owes you under federal law
The Fair Credit Billing Act (FCBA) limits your liability for unauthorised credit card charges. If you report the fraud before the card is used, you owe nothing. If you report it after charges appear on your statement, you are liable for up to $50 per card, though most issuers waive this amount as a matter of policy. If you do not report the fraud and the card continues to be used, you could be liable for all charges made after the issuer should have known about the fraud — which is why reporting quickly matters.
Your issuer must acknowledge your dispute within 30 days and complete the investigation within 60 days. They must notify you in writing of the outcome and explain their reasoning if they determine the charge was authorised. If they find the charge was fraudulent, they must remove it from your account and credit any interest or fees you paid on that charge. If you disagree with their decision, you have the right to request a second review, though this is rare.
Frequently Asked Questions
Will I have to pay the fraudulent charges while the investigation is happening?
No. Your card issuer places a temporary hold on disputed charges, so they do not count against your balance or credit limit during the investigation. You are not responsible for paying them. If the issuer determines the charges were fraudulent, they are removed permanently.
How long does it take to get my money back?
The investigation typically takes 30 to 60 days. Once the issuer determines the charges were fraudulent, the credit is applied to your account within one to two billing cycles. If the fraud occurred on a debit card rather than a credit card, the timeline may be longer because debit card fraud is governed by different rules.
What if the fraudster used my card at multiple merchants?
Report all fraudulent charges to your card issuer in a single call or message. The issuer investigates each charge separately, but you only need to initiate one dispute. Provide as much detail as you can about each charge — the merchant name, the date, and the amount — to speed up the investigation.
Can I still use my card while the fraud investigation is underway?
Yes. The disputed charges are on hold, but your account remains open and you can make new purchases. Your available credit is reduced by the amount of the disputed charges until the investigation concludes, but you can still use the card for new transactions up to your remaining limit.
Should I close my account after fraud occurs?
Not necessarily. Closing the account does not help dispute the fraudulent charges, and it can actually hurt your credit score by reducing your available credit and shortening your credit history. Keep the account open unless the issuer recommends closing it or unless you have other reasons to close it unrelated to the fraud.