Credit Card Compromised? Here’s What to Do Next.

Imagine logging into your account to make your monthly credit card bill, and you come face-to-face with a slew of charges you did not make or authorize. Unfortunately, fraud happens. Despite top-of-the-line security on your accounts and the best identity practices, criminals still find a way. 

Your first reaction to fraudulent credit card charges might be panic, fear, or anger. While emotional reactions are natural, it’s time to act logically and work toward solving the problem. Knowing the proper steps to take in the aftermath of credit card fraud can minimize damage and prevent future incidents. 

Understanding Credit Card Fraud & Data Breaches 

Credit card fraud occurs when someone gains unauthorized access to your credit card information and uses it without your consent. Your credit card may become compromised at the hands of an individual attack through phishing scams or card skimming at ATMs and gas stations. Fraud also occurs due to massive data breaches, which expose customer information, including credit card data, to cybercriminals. These criminals can then use your card to make unauthorized purchases in your name or sell your card data to other bad actors on the dark web. 

Remember, even the most cautious consumers can fall victim to data breaches and credit card fraud. It’s not a reflection of your personal security habits but a result of criminals exploiting vulnerabilities in companies’ systems and online accounts. 

If your card becomes compromised, don’t focus on feeling guilt or finding whose “fault” it may be. Instead, redirect your efforts on taking action to mitigate the impact and prevent future fraud. 

Credit Card Fraud: What To Do Now

If you notice unauthorized purchases on your account, taking steps to prevent future charges is critical. Then, you can begin to restore your credit and activate a new credit card.

Report the Fraud: Contact your financial institution or credit card lender to report the fraud immediately. Your card issuer will place a freeze on your account to prevent further unauthorized access and will reissue you a new card.

Destroy Your Old Card: Upon reporting the fraud, your card must be destroyed. Your financial institution can destroy and dispose of the card for you if you bring it to them, or you can do it yourself. Your lender should provide instructions for this step. 

Activate Your New Card: Once you’ve been reissued a new card, activate it right away to minimize any potential issues.    

Review Your Account: Continue to review your account's transactions and statements for any fraudulent charges. Report any suspicious activity to your financial institution(s) immediately.  

Update Your Card Information: Update your billing information, any automatic payments you’ve set up, and other merchant accounts where your credit card is stored to reflect your new card. This step ensures you won’t experience any disruptions with your recurring payments. 

Check Your Credit Report: Carefully review your credit report to make sure no new accounts have been opened in your name. You can obtain your entire credit report at no cost from www.AnnualCreditReport.com. If your credit card was compromised due to a data breach, the company responsible is usually required to provide affected consumers with free credit monitoring or other remedies. Be sure to take advantage of that benefit if it’s available to you. 

Protecting Yourself from Future Fraud

Unfortunately, it’s impossible to protect yourself 100% from fraud. However, there are steps that you can take to secure your accounts and minimize potential losses. 

Update Your Contact Information: Make sure your financial institutions and credit card issuers have an up-to-date phone number for you so they can reach you to notify you of any potential fraud regarding your account.  

Enable Account Alerts: If your credit card issuers provide an alert system, sign up ASAP. Most financial institutions offer free alerts for card members that you can customize to your preferences, including notifications of suspected fraud and other suspicious activities. 

Monitor Your Account Activity: Regularly examine your transactions, statements, and credit report to check for anything suspicious and report it immediately. 

Never Share Your Card Information: Do not enter or provide your credit card information unless you are 100% certain that the merchant is legitimate. If you have any doubts, do not proceed with the transaction or provide any financial or personal information. 

Protect Your Accounts: Nowadays, every company has an online login. That’s a lot of usernames and passwords to remember. Unfortunately, people tend to reuse login credentials for simplicity’s sake. However, when it comes to your financial accounts, it’s imperative that you set strong, unique passwords. You should also update these passwords regularly to ensure no one can access your accounts. 

Security Resources for Credit Cards 

For more help, check out these resources designed to help credit card fraud and identity theft victims: 

•  Federal Trade Commission: The FTC offers a dedicated Identity Theft resource center, which includes a personalized recovery plan and sample letters to send to your financial institutions, lenders, credit bureaus, and utility companies. 

•  Identity Theft Resource Center: The ITRC is a non-profit organization established to minimize risk and mitigate the impact of identity compromise. They provide resources to help you prevent identity theft and recover your identity if it’s been compromised.

• www.AnnualCreditReport.com: The three major credit bureaus (Experian, Equifax, and TransUnion) created this website to allow consumers access to their credit reports annually.  Regularly reviewing your credit report lets you see if any fraudulent credit accounts are opened in your name so you can dispute them before fraudsters harm your credit score. 

Realizing that your credit card has been compromised is less than ideal, to say the least. Fortunately, you can minimize the impact, and your stress, by knowing the steps to take in the aftermath. By acting rationally and quickly in the wake of fraud and taking actionable steps to boost your security practices, you can reduce the impact of credit card scams on your finances and minimize the risk of future fraud. 

If you suspect you were targeted by a scam or have been a victim of fraud, contact us immediately. Our team is here to support and guide you through any issues or concerns. Please stop by any branch location or call 248-322-9800 extension 5 to speak with a team member. And be sure to check our Scam Updates page regularly to stay up to date on the latest scams. 

 

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