Got a Fraud Alert From Your Credit Card Company? Here's What to Do

You may not want to respond immediately. 

This past winter, I was at a pharmacy buying gift cards for my children's teachers when all of a sudden, my credit card was declined. At first, I was baffled. I knew I hadn't come close to reaching my spending limit, so I didn't see what the problem was.

It was then that I noticed a fraud alert that was sent to me via text. It turned out that because I was buying so many gift cards at once, those transactions eventually started to look suspicious, since it's common for criminals to use stolen credit cards to buy gift cards and run with them. 

And that's not the only time I've received a fraud alert from my credit card company. I was once trying to fill up my car in another state when my credit card got declined. The reason? It looked suspicious that I was buying gas 300 miles away from home. 

Credit card fraud alerts are actually a good thing. Sure, they might cause a temporary inconvenience when you have to deal with them, but ultimately, their purpose is to protect you as a consumer. Case in point: In 2021, a good 390 million people still reported fraud to the Federal Trade Commission, as per recent research from The Ascent.

But just because you've gotten a fraud alert from your credit card company doesn't mean you should respond to it. There may be a safer way to go about things.

Don't fall victim to scams

Criminals have gotten really good at finding ways to impersonate credit card companies, banks, and other financial institutions. So if you get a random fraud alert from your credit card company by text or phone, you may not want to respond. Instead, a better bet is to call the number on the back of your card and ask to speak to your credit card company's fraud department. 

It’ll be able to tell you if your fraud alert is legitimate or not. And from there, you'll be able to tell the company if the purchase they've flagged is one that you made, or one that a criminal has tried to make. 

A good way to avoid needless fraud alerts

It can be difficult to determine exactly what activity will trigger a fraud alert. In my case, buying 14 different gift cards at the same time did the trick. But, as mentioned, I've run into issues simply by putting $15 of gas into my car in a different state.

If you want to avoid the hassle of having to stop what you're doing and deal with a fraud alert, contact your credit card company before engaging in activity that might prompt one. If you'll be traveling, let your credit card company know to not deny transactions at supermarkets and gas stations in the state you're headed to. And if you intend to buy a lot of gift cards at once, call your credit card company and tell them your plans. Those simple steps could save you a bit of embarrassment when you're trying to swipe a credit card in a public place and it keeps getting declined.