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Common Credit Card Fraud Alert Triggers
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Last Updated: September 24, 2024
Key Takeaways
- Out-of-the-ordinary spending can signal fraud to your credit card company.
- Some credit card fraud alerts result from actual fraud, but it’s also possible to trigger a fraud alert yourself.
- You can avoid or resolve false alarms and detect actual fraud with fraud alert triggers.
Your credit card company monitors your card activity to protect against criminals using your account. When they see something that looks inconsistent in your spending patterns, they might suspect fraud and place a hold on your account until you resolve the issue.
While receiving a credit card fraud alert may make you uneasy, not all fraud alerts are because of actual fraud. It’s possible to trigger a fraud alert yourself, even when making legitimate transactions. Learning common fraud alert triggers may help you prevent or resolve false alarms and detect real threats.
What is credit card fraud?
Credit card fraud is a type of identity theft. It occurs when someone steals your credit card or credit card information and uses it to make a purchase or withdrawal without your permission. The information that’s valuable to thieves includes your card number, expiration date, security code, and personal information.
A thief gets access to your card information in many ways. Common examples of credit card fraud Include:
- Online hacks that illegally access data stored on a device or in an online account
- Card skimmer schemes that use a device installed unlawfully in card readers to record your card number when you swipe to pay
The Federal Trade Commission says that in 2023 more than 2.5 million reports were filed detailing the loss of over $10 billion to fraud, with credit cards being the most common payment method.
Fortunately, the Fair Credit Billing Act protects credit card owners from fraud, limiting the maximum liability to $50. And your credit card issuer may provide additional consumer protection.
Did you know?
Discover offers cardmembers $0 Fraud Liability, which means you’re never held responsible for unauthorized purchases on your Discover Card.1
What flags your account for credit card fraud?
Credit card companies offer consumer protection by monitoring your account for fraudulent activity. Sometimes your own spending may accidentally trip a credit card fraud alert.
This can be due to activities like making a large or international purchase (in person or online), an unusually high frequency of charges at once, or other activities that might seem unusual compared to your regular spending habits. Understanding what causes fraud alerts can help you anticipate issues, resolve false alerts, and confirm potential identity theft. Here are some of the things that may ring alarm bells:
Making large purchases
It's common for a criminal to make a large transaction with a stolen credit card. So, if you don't typically use your card for expensive items, making one or several large purchases may appear questionable to your credit issuer, especially if you meet or exceed your credit limit.
Making international purchases
Criminals can access your credit card information from anywhere in the world. That’s why your issuer may get concerned when they see a transaction outside your regular location. Using your card out of state can also mimic suspicious activity.
If you plan on making out-of-state or international purchases, you can alert your credit card company ahead of time to avoid false credit card fraud alerts.
Changes in spending behavior
Thieves use stolen cards for small purchases as well. That means even a less expensive transaction can send risk signals when purchasing several inexpensive items that you don’t usually buy.
Purchasing gift cards
If your regular spending pattern doesn’t include purchasing gift cards, a charge on your account for a large number of gift cards can raise red flags. According to the Federal Trade Commission, buying gift cards with stolen credit is a favorite of scammers. Gift cards are easy to purchase, and scammers can continue using them even after your account is frozen.
How should you respond to a credit card fraud alert?
If your card issuer detects suspicious activity, they will place a hold on your account and may immediately notify you. Depending on your communication settings, the notification might be by phone call, text message, or email. At that point, you can confirm whether the activity is legitimate, and your credit card company can help you initiate a fraud report if necessary.
Reporting credit card fraud
When you know what may trigger a credit card fraud alert you can protect yourself from real threats. If you believe you’re the victim of a credit card scam or theft, you can contact your card issuer to report suspected fraud immediately, hopefully stopping criminals in their tracks.
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Legal Disclaimer: We hope you found this helpful. Our content is not intended to provide legal, investment or financial advice or to indicate that a particular product or service is available or right for you. For specific advice about your unique circumstances, consider talking with a qualified professional. Capital One does not provide, endorse or guarantee any third-party product, service, information, or recommendation listed above. The third parties listed are solely responsible for their products and services, and all trademarks listed are the property of their respective owners. By clicking on some of the links provided, you may be taken to a third-party website that is not hosted by Capital One. In those cases, the owner of the website is responsible for the website content. Their privacy practices and level of security may be different from Capital One's, so please review their policies. Some of the above information may not describe the features and offerings of your specific Discover account. Please review your account terms for details on your specific account.
- $0 Fraud Liability: An “unauthorized purchase” is a purchase where you have not given access to your card information to another person or a merchant for one-time or repeated charges. Unauthorized use and $0 fraud liability claims are subject to investigation and verification. Please use reasonable care to protect your card and do not share it with employees, relatives, or friends.
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