What To Do in the First 24 Hours After Fraud Occurs

What To Do in the First 24 Hours After Fraud Occurs

Nathan Reiff

5 min read

Fact checked by Vikki Velasquez

Key Takeaways

If you suspect you’ve been the victim of fraud, take action: confirm it, stop any additional fraudulent transactions, and begin alerting authorities and financial institutions.

Frequently changing your passwords, maintaining two-factor authentication, and placing credit freezes or fraud alerts can all help to protect you.

IdentityTheft.gov is an official way to report fraud to authorities, but you may also need to notify local law enforcement and others, depending upon your situation.

Nearly three-quarters of adults in the U.S. have experienced some type of online scam or attack. Knowing how to respond if you become the victim of financial fraud is critical to minimizing any financial and emotional damage. Being prepared will enable you to act quickly, which is especially important since the first hours after an attack are crucial. Here are the steps to take in the first 24 hours.

Confirm the Fraud and Take Action

The first step is recognizing that fraud has occurred. While many banks, financial services apps, and credit cards offer automatic notification services, don’t solely rely on that. Regularly look for signs of fraud, including unauthorized charges, suspicious account alerts, unusual phone calls, or texts.

Once you confirm the fraud, cut off any further payments before they happen if possible. Some scams involve extracting multiple payments under false pretenses, and you’ll want to cancel them and avoid making new ones. If you’ve been in contact with the scammer, do not engage further at this point.

Contact Your Financial Institutions Immediately

Contact all relevant financial institutions right away after discovering fraud. Most credit card companies, banks, and brokerages have dedicated contact numbers to report suspected fraud. They may automatically freeze or lock any impacted accounts. If they don’t, you’ll want to take the steps necessary to get those shut down.

Fraudulent credit or debit card charges are among the most common scams. Call your card issuer and dispute all unauthorized transactions. They will likely ask you to confirm recent valid charges, so take the time to review your latest transactions. Be sure to also ask your financial institutions about steps to protect yourself further.

Secure Accounts and Devices

It’s always a good idea to change passwords to your email and financial accounts periodically, but it is vital to do so immediately after discovering an instance of fraud. Follow appropriate security guidance. Use strong passwords that differ among your accounts, make sure all antivirus scanner tools are updated and active, and utilize two-factor authentication.

Place Fraud Alerts or Credit Freezes

The major credit bureaus—Equifax, Experian, and TransUnion—each offer free credit freezes to help protect users who suspect fraudulent activity related to their accounts. Security freezes restrict access to your credit file, which virtually prevents thieves from creating new accounts in your name.

Additionally, ask one of the credit bureaus to place a fraud alert on your account. This service is also free and applies to all credit bureaus. Any potential creditors will have to contact you directly by phone to verify your identity before extending any additional credit in your name.

There are two types of fraud alerts: initial fraud alerts, for when you have recently become (or you suspect you are about to become) a victim of fraud, and extended fraud alerts, for when your identity has been stolen and you’ve already filed an identity theft alert with the authorities.

Important

Fraud alerts typically last for one year, while security freezes may be kept in place until you request that they be lifted.

Report Fraud to the Authorities

Once you secure your accounts and freeze your credit, you’ll want to report the situation to the authorities. Start by filing a report with IdentityTheft.gov, a service of the Federal Trade Commission. This will help to alert law enforcement, and you’ll also receive additional guidance as needed depending upon your specific circumstances.

In most cases, you’ll also need to contact other authorities, including local police, the Social Security Administration, or even the FBI’s Internet Crime Complaint Center. For more guidance, consult IdentityTheft.gov or local law enforcement.

Carefully document everything. Keep records of all transactions, calls, and reports, and be sure to save any emails, screenshots, or confirmation numbers that may be pertinent to the fraud itself as well as the reporting process and, if it takes place, subsequent investigation.

Seek Financial Recovery

Prompt notification of fraud to your financial institutions can help you recover some or all of the money lost to fraud. Credit card charges can be canceled or reversed, for example. Banks can freeze some transactions that haven’t cleared.

Unfortunately, you may not always be able to recover the money, and some situations may be more difficult to remedy. If you sent cash by mail, for instance, contact the U.S. Postal Service to see if it’s not too late to stop the package.

Check your existing insurance (such as a homeowner’s policy) to see if any coverage is included for fraud losses or reimbursements for expenses related to identity theft. You may also want to consult with a financial advisor, a tax consultant, or even asset recovery companies, although keep in mind that the last of these may charge high fees for minimal services.

Keep Monitoring Your Accounts

If you’ve already been the victim of fraud, you may be a target for follow-up scams. Be sure to keep a close eye on bank and credit card statements and to review your credit reports periodically. Staying vigilant about your security can help to prevent recurrences.

The Bottom Line

Financial fraud is, unfortunately, widespread and quite common. If it happens to you, try not to panic. Instead, take steps in the first 24 hours to alert your financial institutions, credit bureaus, and the authorities, while also working to secure your accounts and devices and to begin the process of seeking financial recovery.