How To Get Fraudulent Charges Removed From Your Credit Card

The concept of credit card theft.
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Credit card fraud happens all the time. In fact, the U.S. is the most credit fraud-worthy country in the world. According to recent Nielsen data, credit card fraud losses reached about $28.65 billion worldwide in 2019, with the U.S. alone responsible for more than a third of the total global loss.

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Research Director for Aite Group’s fraud and anti-money laundering practice Julie Conroy told CNBC:

“Our estimate was that at the end of 2020, the U.S. was seeing about $11 billion worth of losses due to credit card fraud.”

What To Do If You See Fraudulent Charges

The first thing to do is call your bank or issuer. It’s better to do this immediately as there are certain time limits depending on the situation. The good news is that true fraudulent charges have an unlimited time frame for which they can be claimed. This means that even if you see a fraudulent charge from a couple of months ago, you can still call your bank or credit card issuer for them to remove it.

Earn More Perks From Your Credit Card

By law, you cannot be held responsible for more than $50 in fraudulent charges. Many banks waive this and offer no liability on fraudulent charges. The FDIC recommends you also file a police report on fraudulent charges. While it is not required, it can help police track the money and helps you in case the validity of the charge is ever disputed. The potential worst part of a fraudulent charge is that it could represent a larger, ongoing violation meaning a repeat offender.

Make Sure It’s Fraudulent

It can get a bit complicated if you claim something as fraudulent, but it actually ends up being your own oversight. Examples of this can be forgetting to cancel a Netflix subscription, seeing it on your next bill and claiming it as fraudulent because as far as you remember it should not be on your bill. This will not qualify as a fraudulent charge.

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Billing Error

If the charge is thought to simply be a billing error, you typically have 6 days to report the charge. If you received bad service or service not rendered, this counts as its own category and you also have 60 days to report it, although it’s not guaranteed you will recover the funds.

Earn More Perks From Your Credit Card

Beware the Repeat Offense

One of the biggest things banks look out for are people taking advantage of fraudulent charge systems. Bank systems are efficient in the U.S., and cardmembers operate confidently under the assumption that fraudulent charges will be recovered and reimbursed swiftly. Certain individuals can take advantage of this and claim something is fraudulent on their cards when they know well it is not and receive multiple payments from the bank. Be careful not to fall into easy money like this, because the bank can cut this privilege off and in the future you might have a true fraudulent charge that the bank might not be willing to cover.

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About the Author

Georgina Tzanetos is a former financial advisor who studied post-industrial capitalist structures at New York University. She has eight years of experience with concentrations in asset management, portfolio management, private client banking, and investment research. Georgina has written for Investopedia and WallStreetMojo. 

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