With credit cards being a huge part of our economy, it is no surprise that unsavory people have devised methods to compromise them. Nonetheless, it is a scary thing to find out that your card has been compromised.
If you ever find yourself in such a dreadful position, you need to act fast. Acting fast will help you safeguard your finances. Thieves can easily and quickly rack up charges on your card once they have the proper information, so taking swift action will help control the damage.
This article shares the steps you should take if you find yourself in this situation. Read along for 5 things to do if your credit card is compromised.
1. Call Your Credit Card Issuer
The first step you should take is calling your credit card issuer so that they can suspend your account.
This will stop the criminal from accessing your finances and messing up your credit score. Also, if the card is involved in any criminal activity, it can be stopped.
2. Notify Credit Bureaus and the Police
You should now report that your card has been stolen to the police to avoid being prosecuted if a crime is committed.
After that, you should notify the three credit bureaus so that they can freeze your credit. This will ensure that your credit doesn’t take a hit because of the criminal activities happening with your card.
3. Update Your Personal Information
It is likely that the information on your card has been changed as well. This can include things like your address and other sensitive information. Log in to your account and update all the information associated with the card, if necessary.
This ensures that your new card will be delivered to your proper address. Also, ensure that you give your card issuer the right phone number to reach you. This is crucial since the criminals may try to change your information when they realize they have been locked out.
4. Secure Your Accounts
Secure all of your accounts as soon as possible. Change your account passwords so that no one else can have access to your accounts.
Your credit card passwords should be different from other account passwords. Don’t allow credit card scammers or hackers to access all aspects of your identity at once.
5. Update Your Bill Payment Information
The moment you notice your card has been compromised, assume that other areas of your financial life have been compromised as well. For example, a canceled credit card could mean that the bill payments you had attached to your card may be late.
Being late with your bills will incur charges and damage your credit, so it is best to get ahead of this issue. Just change your billing systems as soon as you get your new card so you can keep up with the bills.
When your card is compromised, you’re unlikely to face charges attached to the card after you report it. Most issuers offer a $0 fraud liability, which means you won’t pay a dime in the event your card is used after it is stolen.
However, there are other credit card companies that don’t offer such luxuries to users. In that scenario, the maximum amount you should be prepared to part with is $50. In both cases though, when your card is compromised, it is imperative that you follow the steps listed above.