Credit card fraud is when someone uses your card number, expiration date, or other card details without your permission to make purchases or withdraw cash
The fraudster may have stolen your physical card, obtained your number from a data breach, or intercepted it during an online transaction. They then use those details to buy things, pay bills, or transfer money — all charged to your account. You are not responsible for fraudulent charges under federal law, but you do need to report them quickly to limit your liability and stop further damage.
Fraud can happen to anyone, regardless of how careful you are. A restaurant server can write down your number. A website you trust can be hacked. A package can be intercepted. The key is knowing what to watch for and what steps to take the moment you spot something wrong.
Key Takeaways
- Federal law caps your liability for fraudulent credit card charges at $50, and most card issuers waive that entirely if you report fraud promptly.
- You must contact your card issuer by phone as soon as you notice unauthorized charges — email and online chat do not create the legal protection you need.
- Request a new card with a new number, a fraud dispute form, and a written confirmation of the date and time you reported the fraud.
- Monitor your statements weekly for the first month after fraud, then monthly for several months, because fraudsters sometimes test stolen numbers with small charges first.
- Place a fraud alert or credit freeze with the three credit bureaus (Equifax, Experian, TransUnion) to prevent someone from opening new accounts in your name.
Types of credit card fraud and how they start
Card-present fraud happens when someone physically steals your card or a counterfeit version and uses it in a store or ATM. This is the easiest for you to spot because the charges appear when ready on your statement.
Card-not-present fraud occurs when a fraudster has your card number but not the physical card. They use it online, by phone, or by mail. This is more common because the thief never has to be near you. They may have obtained your number from a data breach at a retailer or bank, from a phishing email that tricks you into revealing it, from a skimming device on an ATM, or from a receipt you threw away.
Identity theft is a broader crime in which someone uses your personal information — name, Social Security number, date of birth — to open new credit cards or accounts in your name. This is more serious than fraud on an existing card because it can damage your credit score and take months to unwind.
How to spot unauthorized charges on your statement
Check your statement as soon as it arrives, or log into your online account weekly. Look for charges you do not recognize, especially small ones under $10 — fraudsters often test a stolen number with a tiny purchase first to see if it works before making larger charges.
Pay attention to the merchant name. Sometimes it appears differently than you expect — a store name might be abbreviated, or a company might use a parent company's name instead of its own. If you genuinely cannot remember a charge, call the merchant's customer service number (not one from your statement, which could be fake) and ask what the charge was for.
Do not assume a charge is legitimate just because it is small or because you shop at that store. Fraudsters count on you dismissing a $5 charge as something you forgot. Report anything you do not recognize.
What to do when ready after you spot fraud
Call your card issuer's fraud department right away. The phone number is on the back of your card or your statement — do not search for it online, because scam sites can appear in search results. Have your card and statement in front of you.
Tell the representative which charges are fraudulent and when you first noticed them. They will ask security questions to confirm your identity, then cancel your card and order a replacement. Request that the new card have a different number — do not accept a reissued version of the same number.
Ask the representative to send you a fraud dispute form by mail or email. This form documents your report and is your proof that you notified the issuer. Keep it. Also ask for the date, time, and name of the representative you spoke with. Write this down when ready after the call.
Do not rely on online chat or email to report fraud. Federal law requires you to report in writing or by phone to get full protection. A phone call is fastest and creates a record with a timestamp.
The dispute process and timeline
After you report fraud, your card issuer has up to 10 business days to acknowledge your dispute. They will then investigate, which usually takes 30 to 90 days. During this time, the fraudulent charges are typically removed from your account temporarily — you will not have to pay them while the investigation is underway.
The issuer will contact the merchant's bank to ask whether the merchant can prove the charge was legitimate. If the merchant cannot provide proof (a signature, a receipt, or a video of the transaction), the charge is reversed permanently and you keep the credit. If the merchant does provide proof, the issuer may rule against you, though this is rare if you reported promptly.
Once the investigation closes, the issuer will send you a written decision. If charges were reversed, you will see the credit on your next statement. If any charges were upheld and you disagree, you can dispute again, but the process becomes harder.
Protecting yourself from future fraud
Sign up for fraud alerts or credit monitoring through your card issuer. Many issuers offer this free. Alerts notify you by text or email when someone tries to open a new account in your name or when large purchases are made on your card.
Use a credit freeze if you are concerned about identity theft. A freeze prevents anyone, including you, from opening new credit accounts without unfreezing first. You can place a freeze free of charge with Equifax, Experian, and TransUnion. It does not affect your existing accounts or your credit score.
Never give your card number, expiration date, or CVV to anyone who calls you, even if they claim to be from your bank. Your bank already has this information. Do not click links in emails or texts that ask you to "verify" your account — go directly to your card issuer's website or call the number on your statement instead.
When you shop online, use a find connection (the URL starts with "https" and a lock icon appears). Avoid using public Wi-Fi to make purchases. Consider using a virtual card number — many issuers generate temporary numbers for online shopping that expire after one use or one merchant.
What to do if fraud happens repeatedly
If you are targeted multiple times, your card number may be circulating in the criminal underground. Ask your issuer whether they recommend closing the account entirely and starting fresh with a new one. A new account number and a new card can sometimes stop the pattern.
Check your credit report for accounts you did not open. You can request a free report from each of the three bureaus once per year at annualcreditreport.com. If you find fraudulent accounts, dispute them with the bureaus and the creditors directly.
Consider placing a fraud alert or credit freeze if the fraud involves identity theft rather than just card number theft. An alert lasts one year and tells creditors to contact you before opening new accounts. A freeze is stronger but requires you to unfreeze temporarily each time you want to explore for credit.
Frequently Asked Questions
Will I have to pay for fraudulent charges?
No. Federal law limits your liability to $50 for fraudulent credit card charges, and most card issuers waive that $50 entirely if you report the fraud. You are not responsible for charges you did not authorize. Debit cards have different rules and higher liability, so report debit card fraud even faster.
How long does it take to get my money back?
Temporary credits usually appear within 10 business days. The full investigation takes 30 to 90 days. Once the issuer rules in your favor, the credit is permanent. If you need the money urgently, ask your issuer whether they can expedite the temporary credit.
Should I file a police report?
You can, but it is not required to dispute the charges with your card issuer. A police report is useful if you suspect identity theft or if the fraud is part of a larger crime. Some issuers ask for a police report number when investigating identity theft claims, so check with yours first.
Can fraud affect my credit score?
Fraudulent charges on an existing card do not hurt your score because you are disputing them. However, if a fraudster opens new accounts in your name, those accounts will damage your score until you close them and dispute them with the credit bureaus. This is why monitoring your credit report matters.
What is the difference between fraud and a billing error?
Fraud is an unauthorized charge made by someone else. A billing error is a mistake by the merchant or issuer — a duplicate charge, a wrong amount, or a charge for something you returned. Both are disputable, but fraud has stronger legal protections. Report both to your issuer the same way.