Having your credit cards stolen can be a traumatic and stressful experience. Everybody hopes that it will never happen to him or her, but it certainly could. Aside from the hassle of ordering new plastics, you may face with unauthorized use of your stolen credit cards. However, you can avoid financial losses and minimize related problem if you take necessary precautionary measures and combine them with rapid actions. We provide 5 simple steps to guide you through the process. Please note that the first step should be done by everyone - it will make dealing with credit card theft much easier.
1. Make copies of both sides of all your credit cards and keep them in a safe place. The credit card numbers should be visible on each copy. Then make a list of emergency phone numbers of the card issuers to contact them if your plastics are stolen. Make several copies and keep them in your office, home, and car. Having this information handy will make a credit fraud less stressful. If you've already done this in the past, don't forget to update the information regularly.
2. If your credit card is stolen, the first thing you need to do is to report the theft to your credit card company. Do this as soon as you discover the problem because stolen credit cards are used for making numerous purchases within a very short period of time. Call the toll free number - most companies maintain a 24/7 service line to deal with such emergencies. Make notes of the date and time of your call and the name of the persons you speak with. It's a good idea to follow up each of your phone calls with a letter. Include your account number and the details of the theft.
3. The next step is to call the three major credit bureaus: Equifax, Experian and TransUnion. Report the theft and ask them to attach a 'fraud alert' on your file. It will help track unauthorized transactions.
4. If your credit cards are stolen, you are protected with two laws: the Fair Credit Billing Act (FCBA) and Electronic Fund Transfer Act (EFTA). The FCBA states that your maximum liability for unauthorized transactions is $50. If you report the theft before your credit cards are used, or the theft involves your credit card number, but not the card itself, you have no liability.
The EFTA applies to funds transfers and ATM withdrawals. Your liability depends on how quickly you report the theft. You will not be liable for more than $50 if you report the theft within 48 hours, but you could lose up to $500 if the theft is reported after that time. That's why you need to report your missing credit cards as soon as possible.
5. After the theft, carefully monitor all your billing statements for the next 6 months. Immediately report any questionable charges to the creditors. It is strongly recommended to order a copy of your credit report and check it for suspicious activity: if your credit cards are stolen along with your documents, you can become a victim of an identity theft. If you see any inquiries you didn't initiate, accounts you didn't open or unexplained debts, contact the credit bureau to have them cleared.
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