Credit Card Identity Theft

Credit card theft can happen in various ways, from physical card theft to online data breaches. Victims often discover the theft only when they notice unusual activity or discrepancies. 

Here are some real-world scenarios of how people discovered their credit card information had been stolen:

Sarah, a teacher from California, was reviewing her monthly credit card statement when she noticed a series of small transactions she didn’t recognize—$5 at a gas station in another state, $10 at a convenience store, and $2 at a fast-food restaurant.

How the theft was discovered?

Sarah had not traveled out of state recently and knew these purchases weren’t hers. She called her credit card company and learned that thieves often make small transactions first to see if the card is active and undetected before making larger purchases.

What happened to resolve the situation? 

The credit card company immediately froze her account and issued her a new card. Sarah also filed a report with her local police department to document the incident.

Linda, a business consultant, received a credit monitoring alert indicating that a new credit card account had been opened in her name at a store she had never visited. She hadn’t applied for any new credit, so she was immediately concerned.

How the theft was discovered?

Linda checked her credit report and confirmed that a fraudulent store credit card had been opened using her information. She had not been monitoring her credit report previously, so she did not know when exactly it was opened.

What was the resolution? 

Linda contacted the store’s fraud department to report the identity theft and had the account closed. She then placed a fraud alert on her credit profile and set up a credit freeze with all three credit bureaus to prevent further unauthorized accounts from being opened.

What are some common signs of credit card theft to be on the watch?

1. Unfamiliar Transactions: Noticing small, repeated charges on your statement or large purchases you didn’t make.

2. Unexpected Declines: Having your card declined for no apparent reason.

3. Alerts and Notifications: Receiving emails or text messages for purchases you didn’t authorize.

4. Credit Report Discrepancies: Discovering new accounts or inquiries on your credit report.

5. Physical Loss of the Card: Realizing your physical card is missing or has been stolen.

How to protect yourself from credit card threats?

• Review your credit card and bank account statements. Compare receipts with account statements. Watch for unauthorized transactions.

• Shred receipts, credit offers, account statements, and expired credit cards. This can prevent “dumpster divers” from getting your personal information.

• Review your credit reports once a year. Be certain that they don't include accounts that you have not opened. You can order it for free from Annualcreditreport.com.

• Freeze your credit files with Equifax, Experian, Innovis, TransUnion, and the National Consumer Telecommunications and Utilities Exchange for free. Credit freezes prevent someone from applying for and getting approval for a credit account or utility services in your name.