Most credit card frauds involve lost or stolen cards and costs cardholders and issuers hundreds of millions of dollars each year. Everyone pays for credit card frauds by paying higher interest rates, whether or not they have been a victim of a credit card fraud or not.
If you ever do lose your credit card or if it does get stolen, call the credit card company immediately. Most thieves use stolen credit cards within 48 hours. It’s safe to say that all credit card companies have toll-free numbers and a 24-hour service to deal with these situations. Once you report the loss or theft, the companies are required by Law to stop any unauthorized charges to your card.
You will need to contact your credit card company right away; they will walk you through the whole procedure. In any event, your maximum liability under federal law is $50 per card. In practice, many banks and credit card companies will not charge you at all. The credit card company will then cancel the card. If you still have the card, remember to cut it up so that you don’t use it again.
An extra precaution is to check with a credit reference agency such as Experian or Equifax to make sure no fraudulent applications for credit have been made under your identity. It’s best to find out any incorrect information under your identity upfront rather than finding out about it when you’re applying for a loan. If anything looks suspicious, you can ask them to take incorrect information off your file.
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