Spotting Suspicious Transactions

Whether you are monitoring your accounts or the accounts of a family member, spotting suspicious transactions is vital to financial security. The Florida credit report and ID theft litigation attorneys at Sharmin & Sharmin P.A. are trusted legal advocates for clients whose credit reports are impacted by suspicious transactions. Below, we identify transactions on your banking statement or credit card that may indicate suspicious transactions.

Minimum Test Charges

Beware of small charges on a credit card, generally less than a dollar, that test whether an account is active. Scammers want to test if a credit card is active without drawing attention to the card owner. Once the amount clears, a scammer will likely make a significantly larger purchase. Gas stations and other entities may charge a dollar to ensure you can cover a credit card purchase before allowing you to buy products like gasoline. These charges are standard. Notify your credit card company immediately if you did not initiate a purchase or the charge from an unidentifiable source equals a few cents.

International Transactions When You Are Not Traveling

Customers can purchase products online from around the globe. However, credit card charges or bank drafts you did not initiate going to a business in another country should be considered suspicious activity. Credit card fraud, identity theft, or other illegal activity may be to blame.

Significant Purchase Amounts

Scammers often target Florida seniors. The inability to differentiate scammers from legitimate callers and unfamiliarity with internet safety protocol make mature adults vulnerable to identity and credit card theft. Always question large purchase amounts you did not authorize. Learn more about how to protect seniors from identity theft.

Unknown Merchants

A transaction may be suspicious if you do not recognize a merchant on your credit card or banking statement. Companies may operate under legal billing names that differ from what you recognize. However, it is always best to question a purchase from an unknown merchant and utilize fraud resources rather than assume a transaction is legitimate. 

Recurring Charges

Signing up for autopay is a great way to cover recurring bills on time or continually access services or subscriptions. However, recurring charges you do not authorize may indicate suspicious transactions by a company. Unfortunately, some recurring charges through payment apps, like PayPal, do not trigger a notification each time a monthly charge occurs. Reviewing your statements is critical to prevent unapproved recurring charges. Being automatically signed up for subscriptions you do not approve occurs easily online and can cost you hundreds or thousands of dollars over time.  

How to Prevent Suspicious Transactions

Most credit card companies and banks in Florida allow customers to sign up for alerts when their credit card is used to make a purchase. Reviewing alerts immediately allows you to contact your credit card or financial institution as soon as you notice a suspicious transaction. The bank can immediately stop payment on a suspicious credit card purchase.

Utilize payment methods that can help prevent credit fraud. Having your debit card information stolen allows scammers to access your banking accounts instantly. Protecting against instant purchases is challenging and often leaves the debit card holder with a significant loss of funds. 

Finally, access a hard copy of your bank statement or go online to review transactions for suspicious activity regularly. Advocating for yourself is the first step to protection.