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How To Manage/Report an Unauthorized Debit or Credit Card Transaction

Woman Victim Of Credt Card Fraud
Reporting credit card fraud is a key way to protect yourself (and others) from thieves — here’s a rundown on how to report unauthorized transactions.

Credit Card Fraud — a Common Problem for U.S. Consumers

If you’ve ever been the victim of credit or debit card fraud, you’re certainly not alone. Reports show that unauthorized charges have shown up on the accounts of three in five credit card holders in the United States . Further, according to the Federal Trade Commission (FTC), credit card fraud was the leading type of identity theft reported nationwide in 2023, with more than 416,000 cases reported to the agency over the course of the year .

Protecting Yourself From Credit Card Fraud

Fortunately, consumers can take numerous steps to protect themselves against credit and debit card fraud. The most effective tactics include protecting personal information, being on the lookout for suspicious activity and always being skeptical of any requests for financial or personal details, whether these come in person, in a phone call, or via text or email. Arthur State Bank offers plenty of helpful tips on how to better secure your credit and debit cards.

How To Report Debit or Credit Card Fraud

Sometimes, though, even when consumers go to great lengths to protect their credit and debit card details and personal information, fraudsters still manage to hit their marks. In most cases, holders of credit cards aren’t responsible for any unauthorized activity on their cards, as most credit card issuers have a zero-consumer-liability policy for illegitimate charges. Many debit card issuers also offer zero- or minimal-liability policies. But in either case, any fraud the card holder discovers on the account should be reported as quickly as possible.

Consequently, when consumers think they may have fallen victim to credit or debit card fraud, they need to know how to report the fraudulent activity and what steps to take next. For anyone looking for information on how to report credit and debit card fraud or unauthorized transactions, here are five steps account holders should to take to prevent additional fraudulent charges and protect against further illegitimate transactions:

Step 1: Make Sure the Charges Are Fraudulent

After discovering charges on your credit or debit card you don’t immediately recognize, you may want to take a moment to verify they aren’t legitimate before reporting them. If you keep paper receipts after making purchases, quickly scan through them to remind you of recent transactions — and to make sure none of them matches up with the charges in question. Also, do a quick online search for the name of the merchant behind the charges you’re concerned about. It’s possible you made a legitimate purchase at a business with a parent company whose name appears with the charges on your statement, or that the merchant does business under a name other than the one you recognize. Last, check with anyone else such as family members or friends who are authorized to use the credit or debit card in question to see whether they may have placed the charges.

Step 2: Contact Your Card Issuer as Soon as Possible

If you still suspect any charges on your credit or debit card may be fraudulent, reach out to the card’s issuer immediately. The fastest ways to report any suspected illegitimate charges is to call the customer service phone number found on the back of your card, or if the card issuer offers one, to use the live agent chat feature found on its website. The agent you speak with will likely run through your recent charges with you to confirm which are legitimate and which may be fraudulent. Then, the issuer will begin an internal investigation into the suspicious charges to assess whether they are the result of fraud.

In many cases, your card issuer will suspend the compromised card and issue a new one for you, or lock/freeze the card in question so it can’t be used to make additional purchases. If your card has an associated app or online account portal, you can often use it to freeze the card yourself, preventing any further charges from being made on it until you choose to “unfreeze” it. (At Arthur State Bank, credit and debit card holders can turn their cards “off” by using the CardValet app, which can also send the user real-time charge alerts and more. We have plenty of tips about using CardValet to manage your debit or credit card.)

Step 3: File a Fraud Alert

By setting up a free fraud alert with one of the United States’ three major credit bureaus — TransUnion,Experian or Equifax — you can add an extra layer of protection for your finances. When such an alert is put in place, fraudsters will find it much more difficult to modify your existing credit accounts in any way or to open a new account using your stolen information. Note that a fraud alert needs to be placed with only one of the credit bureaus, as the others will automatically be alerted once you implement one. (The bureaus also allow you to place credit freezes, which function similarly to fraud alerts but must be placed separately with each individual bureau.)

Step 4: Let the Authorities Know

Especially in extreme cases of identity theft, you may want to consider filing a report with the Federal Trade Commission (FTC) at identitytheft.gov. The information you provide when doing so could help law enforcement agencies in investigating the incident and catching the perpetrators, as well as in recovering any belongings that may have been stolen. Because the FTC, a federal law enforcement agency, shares the information in your report with relevant local authorities, you won’t need to file a local police report after filing with the FTC. (But should you choose to file a local police report, bringing along a copy of the report you filed with the FTC can help the process.)

Step 5: If Needed, Update Your Payment Accounts

If your compromised credit or debit card has been frozen or suspended and you have registered it for automatic payments anywhere, you’ll want to update your payment information with those accounts. This is often the case with subscriptions, online accounts and mobile wallets — or anywhere you’ve provided your credit card information for recurring and/or future payments. If your card issuer sends you a new credit or debit card to replace the old, compromised one, you will want to use the new card as your updated payment method for any such accounts.

Would you like to secure a credit card with a range of powerful security features built in? Apply for an Arthur State Bank credit card today!

Proudly serving South Carolina since 1933, Arthur State Bank offers accounts and services to meet a variety of financial needs. To help you achieve all your financial goals, the bank offers in-person service as well as a range of convenient digital solutions. To learn how Arthur State Bank can help you with banking needs from checking and savings to retirement accounts, mortgages, other personal loans and more, visit arthurstatebank.com.

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AnnualCreditReport.com is the only source for free credit reports authorized by the federal government. Every 12 months, you can get a free copy of your credit report from each agency.

Your credit report has your credit history for all of your credit accounts as well as any credit inquiries and public record court information such as collections. In addition, the report provides personally identifiable information such as your name, address, and employment.

Be sure to carefully review all three reports to identify any problem areas that you may need to clean up prior to applying for a mortgage. If there is any incorrect information, follow the reporting agency’s rules to correct it or add a notation to the report to explain the situation.

Your FICO Score is a score combines data from several areas include payment history, the amount owed, length of credit history, new accounts. Many lenders use this score as a guide. This score is not provided as part of the free annual credit report.

Learn more about how your credit score impacts your ability to secure a loan.

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Couple looking over finances

Primary considerations for setting your housing budget require an assessment of your income, debt and current savings for the down payment on the home. The following are generally recommended guidelines; however, you should meet with an Arthur State Bank lender to get personalized mortgage information.

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Couple meeting with lender

The pre-qualification/pre-approval letter is included with any offer you make on a house to inform the seller that you have met with a mortgage lender and you are prepared to make an offer. The letter states that based on certain assumptions, the bank is prepared to lend you up to a specified amount of money for a home mortgage.

When choosing a loan officer, we recommend going local to work with someone who understands your community’s real estate market. This blog on first-time home purchases includes questions to ask your lender that may be helpful when preparing for your meeting.

Helpful Resources:

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Realtor shaking hands with a client

When a house is sold, the seller typically pays real estate commission to both the listing agent and the selling agent. It is extremely beneficial for the buyer to use their own real estate agent. Loan officers can often recommend selling agents in the area; ask your officer about realtor referrals when discussing your loan.

A good realtor will know the local market and can help you find an ideal home based on your budget, location and desired features. During your search, understand that you will most likely need to compromise on some items, so it’s important to identify your critical needs versus your wants.

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Couple searching online for a home

Additionally, when you start with the house search and work backwards, homes can often go off the market while you’re completing steps 1-4. While browsing homes immediately can be tempting, we recommend following these steps in order so that, once you find your dream home, you’ll be well-positioned to take action immediately.

When you find the home you want and you think you are ready to put an offer on it, you will want to make sure you have all the information you need to make a solid offer.

  • Evaluate the neighborhood.
  • Drive by the house at different times of the day.
  • Examine how other houses in the neighborhood are maintained.
  • Consider any potential traffic or other disruptive noise.
  • Is there ample parking for you and visitors?
  • Read the details in any Homeowner Association agreements (HOA fees and rules).

Make sure to do a preliminary check of house details:

  • Check the water:
  • Does it have good pressure?
  • How long does it take to get the water hot?
  • Is it well water or city water?
  • Turn light switches on and off.
  • Open and close doors and windows to make sure they work properly.
  • Review previous utility bill expenses.
  • Consider the property tax bill.

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Family meeting with realtor at new house

When writing an offer contract, be sure to pay attention to all of the details.

Offer Price:

Your agent should do a market analysis that pulls data on recently sold comparable houses. The best comparisons will come from the same neighborhood.

If you are asking for the seller to pay some of the closing costs, remember that this cost plus the sales commission determines the net amount you are offering the seller for the house.

Work with your agent on your negotiation strategy. There are many things to consider, such as how badly you want this particular house, whether it is a buyer’s or seller’s market and an assessment of the seller’s motivation to get the property sold.

There isn’t one best strategy.

Be sure to document in writing everything you want included with the house, such as appliances, etc. Your agent should guide you through the contract step-by-step.

Contingencies:

  • Home inspection.
  • Mortgage.
  • Final walk through (24 hours prior to closing).

Proposed closing date. Typically, this is 30-45 days from an accepted offer.

A good-faith deposit is required for the offer. This is typically between 1-10% of the purchase price of the house. The deposit is kept in escrow until closing and the money is applied to the purchase price of the house at closing. If the house does not close due to one of the contingency clauses, the buyer receives their money back. However, if the buyer decides not to close on the property, the seller may get the deposit money.

Attach your pre-approval letter to the offer.

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Two people in professional meeting

The clock starts ticking for everything documented in the contract, including mortgage application, inspections and closing date.

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Woman advising other woman on mortgage application

You will need to decide which mortgage to select prior to the application.

Plan for the following potential fees:

  • Application fee (many banks and mortgage companies charge an application fee; however, there is not an application fee at Arthur State Bank).
  • Credit check.
  • Appraisal (may be paid at closing).
  • Loan origination fee (paid at closing).

Once you have approval for your loan, make sure you don’t change anything that will impact the status of your mortgage. Banks do a final check on credit and jobs just prior to closing, so now is not the time to change jobs or make another purchase on credit such as a car or furniture.

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Home inspector going over findings with home owner

Depending on the size of the house, an inspection can cost on average between $300 to $1000.

Many real estate contracts specify how problems uncovered in the inspection will be resolved, up to a certain dollar amount. Should necessary repairs exceed that amount, the buyer has the option to cancel the contract without penalty and receive their deposit money back. Another option is for the buyer and seller to renegotiate who will pay for additional repairs.

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Woman happily holding keys to her new home
  • Homeowner’s insurance is required by the lender prior to closing on the loan.
  • Turn on utilities in your name, effective the closing date.
  • Change your address with the U.S. Postal Service.
    • Make moving arrangements.

Three days prior to closing:

  • You should receive your final Closing Disclosure from the closing agency. The final Closing Disclosure shows a column for the seller and a column for the buyer. All closing charges and credits for both the seller and the buyer are documented in the closing statement.
  • Review the closing statement for accuracy prior to coming to closing.
  • The final amount in the buyer’s column shows you the amount of money you need to pay at closing.

The closing office will provide specific payment instructions. Closing funds have become recent targets for cybercriminals. If you are asked to use a wire transfer, call the office and ask to speak to someone you have been working with to double-check the instructions.

Closing day:

In South Carolina, the closing will usually take place at the attorney’s office. Everyone signing for the mortgage must be present to sign the closing paperwork. Make sure you bring the following:

  • Cashier’s check or proof of payment for wire transfer.
  • Driver’s license.
  • Checkbook, just in case there are any additional items that were not on the closing statement.

Be sure to understand this information:

  • How and when you will pay:
  • Your mortgage.
  • Your property taxes.
  • Your homeowner’s insurance.
  • Any HOA dues.
  • Who to call with any questions.

The best practice is to go through the homebuyer’s roadmap in this sequence. However, if you jumped ahead early in your journey, just circle back to address the steps you missed.

Arthur State Bank’s loan officers are closely tapped into local real estate markets and experts at helping clients get what they need on terms that work for them. We also offer mortgage specials for first-time homebuyers.

To start planning your journey to your dream home, try out our mortgage calculator. If you’re ready to talk to a loan officer, contact Arthur State Bank to request personalized mortgage information today. Don’t forget to ask about our first-time homebuyer offer.

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