If you regularly keep tabs of your recent transactions, you might come across an unauthorized transaction from time to time. More often times than not, this would mean that someone has stolen your debit or credit card and gained access to your checking account.
It is imperative for you to take charge to protect yourself and stop any further unauthorized transactions. To do so, read on below to see what you can do in crisis such as this.
Contact Your Bank
When an unauthorized transaction occurs, contact your bank to learn more in regards to where the transaction came from. Whether the transaction was done in the proximity of you or stolen online, the bank should be able to tell you if the transaction was from a debit card or an ACH transaction.
The main difference between the two is that if it’s a debit card or point of sale transaction, your bank may be able to cancel the debit card used. However, if it’s an ACH transaction, it is recommended that you close the account associated.
Regardless of how the unauthorized transaction happened, be sure to ask your bank to put a temporary freeze on your account.
Contact The Vendor
The next step in the process would be to contact the vendor to begin disputing the charge. Often times, vendors may work with you to press fraud charges and help you file a report to the police. However, this would, of course, depend on where and when the charges were made.
This is why I would recommend checking your transactions on a daily basis. If you caught the charge while it is still pending, you may be able to catch and cancel it. However, if the said charge had already been posted, you may have to wait several days to dispute the charge.
Dispute The Charge
To begin disputing the charge with your bank or credit card company, you would oftentimes have to fill out a form online and provide more detail in regards to the fraudulent charge. However, this would depend on your bank. You may have to fill out a physical form at your nearest branch location.
You have 60 days to dispute the charge formally. Still, it is highly recommended to act as fast as possible, especially if the amount taken was imperative to your financial health.
File a Police Report or Fraud
This step would depend on the number of changes made as well as the severity of the situation. If the unauthorized transaction is severe, you may have to file a fraud report with your local police department. Not only does this acts as a security blanket, but it shows the bank that you did not make the charges, in case any clearing needs to be done in your name.
However, I do have to state that this does not necessarily mean you will receive your money back right away. Processing a claim or police report would take some time. Additionally, be sure to ask for a copy of the police report to file in case you need it in the future.
Switch Your Bank Drafts to Your New Account or Card
The smart thing to do in these situations, would, of course, be to close your account associated. You would need to switch and transfer everything that was direct deposited or automatically drafted from that account.
To break it down, even more, this would mean changing and updating the information for each of the automatic services you use, as well as any direct payments you have connected to that bank account.
A few examples of this would be gym memberships, Spotify accounts, car payments, etc. Whether you are already keeping a list of automatic bill payments or not, it is highly recommended in case any bills go unpaid.
Monitor Your Account and Credit Closely
Treat this as a learning curve, you wouldn’t want fraudulent charges to occur on your account again, right? To better ensure it remains so, closely monitors the activities on your account. This would not only mean your checking account but your debit card as well.
If a user had direct access to your checking account and not just your debit card, I would definitely suggest putting a temporary freeze on your credit report for extra protection.
Sometimes, it may seem like the fraudulent charge is small, but do note that it is imperative to spot and stop the activity before it turns into a full-blown identity theft.
Conclusion
All in all, keeping track of your financial health is always important. Whether you are at home or on the go, banking apps such as Chase, allows you to set a notification whenever a change has occurred. This would allow you to catch any fraudulent activities as soon as possible.
Although putting extra steps in between your normal banking procedure can be frustrating, it will definitely help monitor your information in the future. Lastly, if you would like to further establish your financial history, be sure to take advantage of our list of bank bonuses as well as bank rates!