Credit Card Fraud

Credit card fraud happens when someone uses your card or card number without your permission. It can involve a stolen physical card, a card number skimmed at a gas pump, or card data taken in a data breach and sold online. It is one of the most common forms of identity theft.

Credit card users have strong federal protection. The FTC explains that the most you can be held responsible for when someone uses your lost or stolen credit card is $50, and if only your account number was used while you still have the card, you are not responsible for the unauthorized charges. Many card issuers voluntarily offer zero liability. Debit cards have weaker protections, and your liability can grow the longer you wait to report a problem.

Fraud connects to class actions mostly through data breaches. When a retailer, restaurant chain, or payment processor loses card data, affected customers and the banks that had to replace cards may sue. Settlements often reimburse documented out-of-pocket losses, such as unreimbursed charges, fees, and time spent fixing the problem, rather than paying everyone a flat amount. Separately, lawsuits have challenged how banks handled fraud claims, such as refusing to reverse charges.

If you spot a charge you did not make, call your card issuer immediately, dispute it in writing, and keep copies. Check your credit reports for new accounts. Our guides on what to do after a data breach notice and what a data breach settlement is worth explain next steps, and the data breach lawsuit page tracks active cases.