How To Contact the Police About Credit Card Fraud

Should You Contact the Police About Credit Card Fraud?

If you've become a victim of credit card fraud, contacting the police is a critical step in your recovery plan.

Credit card fraud can take different shapes — including the physical theft and use of a card, the misuse of stolen credit card numbers from phishing scams and data breaches, and fraudsters setting up new credit card accounts in your name. 

As soon as you notice your card is missing, spot fraudulent charges on your credit card statement, or see new accounts on your credit report, you should do the following: 

• Report the crime to your bank, and cancel your compromised card
• File an official identity theft report with the Federal Trade Commission (FTC) at IdentityTheft.gov
• Contact your local police department and report the crime 
• Sign up for credit and identity monitoring to warn you of future fraud
• Review your credit reports, and dispute fraudulent accounts

While your bank handles your account security and damages, the police may hand out felony charges and serious jail time to the fraudsters. However, the police don't investigate every instance of credit card fraud. 

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How Is Credit Card Theft or Fraud Investigated?

Credit card fraud is by far the most common type of identity theft, affecting approximately 36,000 victims each month, according to data from the FTC [*]. 

While advancements in card security helped Visa block $40 billion in fraudulent transactions in 2023 alone [*], the number of financial institutions dealing with losses from credit card fraud is still increasing year after year [*].

The good news is that victims are rarely held accountable for unauthorized charges or losses from credit card fraud, thanks to $0 fraud liability policies on many cards. 

However, banks still need to investigate in order to determine whether or not the fraud stemmed from unauthorized use. In some situations, investigations involve various law enforcement agencies.  

Here's how the credit card fraud investigation process typically works: 

1. You submit a fraud claim to your credit card issuer

Under the Fair Credit Billing Act (FCBA) [*], credit card companies are required to refund any charges in excess of $50 that were billed in error — which includes unauthorized credit use. To qualify for a refund, you need to submit a proper fraud claim to your credit card issuer. 

Before you do that, however, contact the merchant or retailer that first charged you. They might be able to reverse the charge directly. At the very least, you can gather important information about the fraudulent activity — such as who was involved, when it happened, and how it took place. 

The process for formally disputing credit card charges varies by bank, but you need to submit disputes within 60 days of the first bill reflecting the fraudulent charge. 

You may be able to file from your online bank account or mobile app, or you can email the fraud department directly. Whatever path you choose, be prepared to provide: 

• Your bank account number
• Date of the disputed charge
• Dollar amount of the disputed charge
• Detailed explanation of why you believe the charge is incorrect
• Supporting documentation or evidence

After you file a dispute, your bank or credit card company has 30 days to acknowledge the complaint and 90 days to resolve it [*]. 

2. Your lender will assess the claim and take initial steps

In the early stages of your dispute, your bank or credit card company will start by verifying that the suspicious activity took place and that your complaint was filed within the appropriate time frame (60 days, as per federal law). They may then perform the following actions:

• Issue a provisional credit. Many banks provide provisional credits to cardholders for the disputed amount while the investigation is underway. This ensures that you have access to the funds during the dispute process, but banks will reverse the credit if they deny your claim. 
• Cancel your card. Rather than take a chance, your bank or credit card company may deactivate your credit card even before your dispute has been settled. They will then issue you a replacement card with a new number, and transfer over your balances and pending transactions.  
• Update your account. Your bank or credit card company may make changes to your account to avoid future incidents, such as adding fraud alerts and two-factor authentication (2FA). This will make it more difficult for fraudsters to steal from you a second time. ‍
• Request additional information. Your claim assessor may determine that the dispute requires more information to proceed with the investigation, such as receipts, invoices, or relevant emails.

3. The financial institution's internal fraud team investigates

If the initial review determines that your dispute warrants an investigation, your bank or credit card company will launch an internal investigation. While this process can vary, credit card fraud investigations may involve the following organizations: 

• The merchant or retailer. Merchants provide critical transaction details for the investigation, including timestamps, purchase type (card present or card-not-present), shipping information, buyer descriptions, and more. 
• Cybersecurity specialists. Cybersecurity experts can extract useful digital information from the transaction, such as the buyer's IP address and other device identifiers. The data they collect may help identify a pattern and/or track the fraudster. 
• Law enforcement agencies. The bank may involve law enforcement agencies if the fraud appears to be significant — such as spanning multiple jurisdictions, indicative of a larger pattern of events, or involving a large dollar amount. Law enforcement may also have better access to surveillance footage or records than the bank. 
• Major credit bureaus. Credit reporting agencies may have information that confirms a credit card was opened fraudulently in your name and can help narrow down when and where the account was created. 
• Credit card networks. While your bank handles most disputes for large credit card companies like Visa and Mastercard, the card network may get involved in rare cases that involve widespread or patterned fraud. 

4. If you file a police report, law enforcement may start their own investigation

Filing a police report could trigger an investigation, but it will depend on the nature of the crime and the availability of police resources. 

Here are some of the criteria police may consider before launching an investigation:  

• The amount stolen. Large sums of money tend to garner more attention from the police because these crimes cause greater harm to you and more danger to the community.
• The quality of evidence. The more information you have about the crime or criminal, the better your chances are of a police investigation. For example, if you know that the theft resulted from a credit card skimmer at a local store, or if you know who stole your card, the police will likely get involved. 
• Type of crime. If there's any hint that the crime is part of a larger pattern, police may want to investigate to defend against future or systemic fraud.  
• Location. Police handle only crimes in their jurisdiction, so they likely won't investigate online fraud. However, cases of online credit card fraud may be upgraded to a federal agency if the crime technically crosses state lines. 

Whatever the situation, show up prepared with all available evidence and supporting documents. No matter what happens with the investigation, ask for a copy of your police report. It may be useful during the credit card dispute process.   

5. Your credit card issuer will make a decision based on its findings

After the financial institution has completed its investigation, it will deliver a ruling based on its findings — either approving or denying your claim. 

While many factors go into the decision, here are some of the bank's primary considerations: 

• Location. Comparing the location of the purchase to your known whereabouts at that time. 
• Timing. Tracking where you were and what you were doing at the time the purchase was made on your account. 
• Evidence. Evaluating any receipts, shipping confirmations, emails, and security footage that was provided as proof of fraud.
• Identifiers. Reviewing identification information for the purchaser, such as IP addresses, device IDs, login credentials, physical identification cards, and provided names.
• Patterns. Checking if the disputed charge aligns with your usual buying behavior, if it fits the pattern of fraud, or if it matches up with other fraud reports.

What Should You Do If Your Credit Card Issuer Won’t Refund Fraudulent Charges?

If your bank or credit card company determines that the disputed charge was fraudulent, it will either reimburse you right away or file a chargeback to the merchant to recover your funds. If your claim is denied, however, you'll be responsible for the disputed charge and any applicable interest. 

In this instance, you can still recover the money; you'll just have to take additional steps, such as:

• Ask for supporting documents. You can request a formal explanation for the denial, including any supporting evidence that the bank used to inform its decision. 
• Appeal the decision. The bank's decision will likely include specific information about the appeal process, but you typically have 10 days from the time you receive the supporting documents. If you can address issues highlighted in the denial, you'll increase your chances of success.  
• File a complaint. The Consumer Financial Protection Bureau (CFPB) fields complaints about a variety of financial issues and mediates disputes. Since duplicate claims will likely be denied outright, you'll need to provide additional information to the CFPB, including why you believe the dispute was unfairly denied. The CFPB will inform you of the bank's decision in a timely manner, and it may enforce broken consumer protection laws or compensate you from the Civil Penalty Fund, if applicable [*]. 

Is Credit Card Fraud a Felony? 

The illegal use of another person's credit card is often a felony under both state and federal law, even if the offender is a family member. 

The classification and punishments for these crimes depend on several factors, including:

Monetary thresholds. Many states set specific monetary limits for misdemeanors and felonies. In Louisiana, for example, fraud over $1,000 is a felony punishable by up to 10 years in prison and/or a fine of up to $10,000. In Idaho, the felony limit is $300 [*].

Criminal intent. Intentional fraud (as opposed to accidental) qualifies as a felony in many states. For example, Florida classifies any intentional fraud as a felony of the third degree, which is punishable by up to five years in prison [*].

Criminal history. Repeat offenders often face stiffer charges and penalties, such as a misdemeanor being upgraded to a felony. In New York, all charges get upgraded one degree if the defendant has been convicted in the past five years [*]. 

Victim's age. In an effort to protect vulnerable seniors, many states add victim age thresholds when classifying crimes. In Connecticut, identity fraud against victims over the age of 60 are automatically upgraded to class C felonies, regardless of the monetary value. In Washington, D.C., penalties are enhanced 1.5 times for crimes against victims over the age of 65 [*]. 

Jurisdiction. Determining whether fraud is a state- or federal-level crime depends on where it took place and how it was committed:

• State-level crimes: State crimes include credit card fraud that occurs entirely within one state, such as using a local stolen card at a local store. As an example, North Dakota classifies credit card fraud above $1,000 as a class B felony [*], punishable by up to 10 years in prison [*].  
• Federal-level crimes: Federal crimes include credit card fraud that involves federal organizations like the United States Postal Service (USPS) or crosses state lines, such as using a card for purchases at an out-of-state online retailer. At the federal level, credit card fraud above $1,000 is punishable by up to 20 years in prison [*].

📚 Related: How To Protect Your Bank Account From Identity Thieves → 

How To Protect Yourself Against Credit Card Fraud

Credit card fraud is a serious crime that is punishable under both state and federal law. However, your local police department may not have the resources or the willingness to investigate every case. 

Banks and credit card companies have become very effective at blocking and reversing fraudulent charges, but they can't actually help prevent identity theft or many other types of fraud. And once you've become a victim of identity theft, your odds of being targeted again by identity thieves grows significantly [*]. 

If you want to protect against future attacks, take these proactive steps:

• Freeze your credit with all three credit bureaus. Freezing your credit file with each of the major credit bureaus (TransUnion, Equifax, and Experian) ensures that no one can access your credit, even if they have your information. 
• Avoid storing your credit card information online. When shopping online, use a guest account instead of a personal account that saves your private information. Paying with virtual cards like Apple Pay or Google Pay also offers better protection because it hides your personal data. 
• Check data breaches and the Dark Web for your credit card information. Run a Dark Web scan to see if your details have leaked online, such as your Social Security number (SSN), phone numbers, or credit card information. While companies are required to tell you if you were involved in a breach, you may not find out until it's too late.
• Sign up for fraud alerts from your bank and other lenders. Many banks and lenders offer fraud alerts that notify you of suspicious account activity, including large transactions or changing information. This can tip you off early to fraud and help you shut it down before it gets worse. 
• Monitor your credit reports by using a credit monitoring service. Americans have access to free credit reports every week from AnnualCreditReport.com, but monitoring it yourself takes a great deal of time. If you need help, let a credit monitoring service do the work for you and alert you to fraudulent activity the moment it happens. 

For even more protection, consider an all-in-one solution like Aura to secure yourself and your family against credit card fraud, identity theft, hacking, and all types of scams. 

Along with 24/7 three-bureau credit monitoring and the fastest alerts in the industry³, Aura provides powerful digital security, certified White Glove Fraud Resolution support, and up to $5 million in identity theft insurance to cover eligible expenses and losses.