A few weeks ago, my friend told me that her debit card was used on Macys.com without her authorizaton. My friend is probably one of the most responsible people I know. She checks her online bank account almost every single day and this is why she was able to notice this unauthorized charge while it was still pending.
There is a great lesson to be learned from my friend.
Check all of your Financial Statements on regular basis! As soon as you receive your statements, go over every single transaction. And if you bank online or have any other online financial accounts, you can check your account activities pretty much every day. It only takes a couple of minutes out of your schedule.
Although checking your financial statements will not prevent Identity Theft/Fraud, you will be able to notice fraudulent charges and dispute them in a timely manner. You will also be able to detect the early signs of Identity Theft and take action to minimize and/or prevent any further damages.
If you discover unauthorized charges on any of your statements, the amount you could lose depends on how quickly you act.
- If your ATM/Debit card was compromised, you must dispute fraudulent charges within 2 business days of learning about them in order to keep your liability to $50.00 or less. Your liability goes up to $500 if you don’t report within those 2 business days. If you report fraudulent charges after 60 days, your liability is unlimited. So act swiftly!
- If your Credit Card was compromised and used without your authorization, your liability for those fraudulent charges is limited to $50.00, but you must dispute them within 60 days of the day the credit card issuer sends you the bill.
- If your Bank Account is compromised, you might be responsible for a loss 100% if you know about a problem but don’t report it quickly. If you report fraud in a timely manner, most likely, you will not be held liable.
Do you check your financial statements on regular basis? Leave a comment.