Protecting Your Personal Accounts From Unauthorized Charges

You can keep your credit cards and account numbers secure but still be vulnerable to scammers stealing from your personal accounts. Hackers can get access to your bank account information in many ways. Once they have access, they can transfer thousands of dollars in seconds. Understanding how card and bank fraud happens can help you protect your personal accounts.

If you lost money to unauthorized charges on your personal accounts, talk to a consumer protection lawyer for legal advice.

Understanding Unauthorized Account Charges

Thieves don’t need your physical credit card to make unauthorized charges. Many credit and debit card users purchase items without ever handing over their cards. You can swipe your card at a kiosk or self-checkout stand. You can also enter your credit card information to shop online. All someone needs is a little sensitive information to make charges in your name.

Some of the most common ways fraudsters get access to your financial information include:

• Phishing scams
• Card skimmers
• Lost or stolen cards
• Data breaches
• Unsecured public Wi-Fi networks

With only your credit card number, cybercriminals can make unauthorized purchases to your account. While credit card companies have security measures to detect fraud, it doesn’t catch all credit card fraud. You can prevent some fraud, but other types of fraudulent activity are beyond your control. Using strong cybersecurity steps and monitoring your accounts can help you limit potential fraud and identity theft.

State and federal consumer protection laws offer some help in limiting your liability when scammers take your money. The Fair Credit Billing Act limits liability to $50 in fraudulent charges if you report it to your credit card company within 60 days. You can dispute any unauthorized charges.

Monitoring Your Credit and Financial Accounts

Monitoring your account transactions is one of the simplest ways to limit unauthorized charges on your accounts. If you regularly check your savings and checking accounts, you can identify unauthorized charges. You can immediately notify your bank to cancel a card or notify their fraud department of unauthorized access.

You should also regularly check your credit report for unauthorized credit activity. Identity thieves can use your Social Security number and other personal information to open accounts in your name. You can get a free annual credit report every year from the three major credit bureaus—Experian, Equifax, and TransUnion.

Setting Up Alerts and Notifications

You can set up alerts and notifications with your credit card company or financial institution. You’ll get an alert when there is any account activity, including unauthorized transactions. This limits any online fraud—you can stop it as soon as you notice someone has access to your personal accounts.

Be careful when you get a text notification or email saying your account was hacked. There are phishing scams that try to get your information through impersonation. These scams can be very convincing. They rely on fear to scare you into action. If you think someone hacked your account, contact the company directly. Don’t click on links or respond to unsolicited text messages.

Phishing scams use email, text, and social media messages to convince you they represent your credit card company, bank, or another company. It seems like they’re from a legitimate source and only want to confirm the information the real company already has. They can include attachments containing malware or links to send you to a fake site to enter your personal information.

Secure Access and Password Protections

Strong security measures can protect you against common financial fraud. Your computer or mobile device has a lot of sensitive information when mobile banking or online shopping. Make sure to protect your phone and networks when doing online banking. Secure access and password protections include:

• Multi-factor authentication
• Virtual private networks (VPNs)
• Secure websites with “https” encryption
• Unique passwords updated regularly
• Firewalls
• Updated antivirus software

Steps To Take if You See Unauthorized Charges

If you see unauthorized charges on your personal accounts, notify your bank or credit card company immediately. When you report unauthorized credit card or ATM access, the card company can cancel your card and issue you a new card. When you report unauthorized bank account transactions, the bank can freeze your account to stop new withdrawals.

Many scammers try to get you to send alternative payments, which they can access immediately. Common online scams request sending payments with wire transfers, cryptocurrency, or gift cards. These payments are harder to trace and more difficult to stop. Beware of scams asking you to pay with gift cards or wire transfers.

Reporting Fraud and Protecting Your Finances

Report fraud to the Federal Trade Commission (FTC). You can report financial scams, including credit card fraud, phishing scams, and identity theft. This can help protect others from financial fraud.

If you lost money because of unauthorized charges to your personal account, you may be able to get your money back. A bank, department store, or credit card company that has a data breach should also bear the financial costs for their mistakes.

If you’re a victim of financial fraud, a consumer protection lawyer can help you get your money back. For help with unauthorized charges to your accounts, contact a consumer protection lawyer.