When someone’s credit card and bank accounts are hacked into at the same time, it’s usually the result of identity theft or account takeover. What happens most of the time depends on how quickly the person and their financial institutions respond. Here’s the usual chain of events:
1. The Criminal Activity
- Credit Cards: Hackers usually try to make unauthorized purchases or create counterfeit copies of the card.
- Bank Accounts: They might transfer money out, set up Zelle or ACH transfers, or even attempt to take out loans in the victim’s name.
2. Detection
- Many times, the bank or credit card company detects unusual activity and freezes the accounts automatically.
- Other times, the victim notices missing money, strange charges, or login alerts and reports it.
3. Response by Banks and Credit Card Companies
- Credit Cards: Victims are usually protected. Under U.S. law (Fair Credit Billing Act), liability for unauthorized credit card charges is capped at $50, and most issuers waive even that. Fraudulent charges are reversed.
- Bank Accounts/Debit Cards: This can be trickier. Under the Electronic Fund Transfer Act:
- If you report fraud within 2 business days, your liability is capped at $50.
- If you report it within 60 days, your liability can go up to $500.
- After 60 days, you may be liable for all unauthorized transactions.
4. Account Freezes & Recovery
- Banks often freeze both accounts to prevent further damage.
- Victims usually must:
- Close compromised accounts.
- Open new ones with new account numbers.
- Change online banking passwords and security questions.
- Possibly file a police report or FTC Identity Theft report.
5. Longer-Term Impact
- The fraud may appear on the victim’s credit report if loans or credit accounts were opened in their name.
- Recovery might require contacting all three credit bureaus, placing fraud alerts or credit freezes, and monitoring accounts closely.
Most of the time:
- Credit card fraud is resolved fairly quickly with little to no financial loss.
- Bank account fraud can cause bigger headaches, especially if reporting is delayed, but usually victims get their money back if they act fast.
- The victim spends more time than money—dealing with new accounts, passwords, and credit monitoring.
Here is a Checklist for what to do when your credit card accounts are hacked.
