Although credit cards eliminate the hassle and potential dangers of carrying cash, they can ultimately cause financial losses if they’re stolen. Credit card companies have measures in place to protect people when this happens, and federal laws in the United States also limit the cardholder’s liability for unauthorized charges. However, cardholders remain at risk if they don’t properly report the theft.

Reporting to the Credit Card Issuer

People should report the theft of their credit card or of their card number to the card issuer the moment they realize it was stolen. Cardholders may be held responsible for a small portion of the unauthorized charges if they fail to report the stolen card before the thief uses it. If only the number was stolen, as is the case in some online transactions, the cardholder usually is not liable; however, he still must report it as soon as possible.

Cardholders can report this to the credit card issuer by telephone. Calling the toll-free number or a number listed specifically for loss or theft puts the person in touch with an agent who can freeze the card to prevent unauthorized charges. The cardholder should note the agent’s name as well as the time and date of the call for further proof of the report.

Cardholders should also monitor their credit card statements and credit report following the theft. They can then report any suspicious activity or unauthorized charges to the credit card issuer to dispute them. If the issues are not resolved with the credit card issuer, the cardholder may find additional protection by reporting identity theft to the Federal Trade Commission.

Reporting Credit Card Theft to the Police

People should also consider contacting the police when their credit cards or wallets are stolen. If travelling, the cardholder should file a police report for the area in which it was stolen. The number of the police report can then be given to the credit card issuer, but the cardholder should first report the loss to the credit card company rather than the police.

If the theft resulted in unauthorized accounts being opened in the cardholder’s name, the cardholder should report identity theft to the Federal Trade Commission prior to filing a police report. This ensures all the necessary information is documented. A police report can also help the cardholder obtain copies of unauthorized transactions.

Reporting the loss to both the card issuer and the police as soon as possible may help prevent lengthy disputes over unauthorized charges.