How to Spot Fraudulent Bank Charges

Not every mysterious bank charge is innocent. Knowing how to spot fraudulent bank charges — and act quickly when you find one — can protect your finances and help you recover your money faster. Fraud can take many forms, from card skimming to subscription scams, and the charges often appear as unfamiliar or confusing descriptors. Here's how to tell the difference between a legitimate-but-confusing charge and actual fraud.

Red Flags That Suggest Fraud

Warning signs include: charges in a currency or country you've never transacted in; multiple small charges in quick succession (often used to test a stolen card); charges at unusual times (e.g. 3am); charges from merchants you've genuinely never heard of even after researching; and charges after you've lost your card or had your details compromised.

A common fraud pattern is a £0.01 or £1.00 test charge followed by a much larger charge within 24–48 hours.

Common Fraud Types That Create Bank Charges

Card skimming occurs when your physical card details are copied at an ATM or terminal. Card-not-present fraud uses your card number online without the physical card. Account takeover gives fraudsters full access to your bank account. Subscription scams trick you into signing up for recurring billing via fake "free" offers.

How to Verify a Suspicious Charge

Before calling fraud, search the descriptor on Detect My Charge. Look up the company name online. Check your email for receipts on or around that date. Ask other people who have access to the account (e.g. a partner or family member) if they recognise it.

What to Do If You Suspect Fraud

Act quickly: freeze your card immediately using your bank's app. Call the fraud line on the back of your card. Don't wait — time matters for fraud claims. Your bank will typically cancel your card, investigate the charges, and issue new card details.

How to dispute a fraudulent charge with your bank

Reporting Fraud

In the UK, report card fraud to Action Fraud (actionfraud.police.uk) or call 0300 123 2040. In the US, report to the FTC at reportfraud.ftc.gov. Your bank's fraud team will also guide you through the reporting process.

Frequently Asked Questions

What is the most common bank charge fraud?

Card-not-present fraud (using stolen card details online) is the most common. It often shows up as unfamiliar online purchases from merchants you've never visited.

How quickly should I report a fraudulent charge?

Report it as soon as you spot it — ideally the same day. Most banks require you to report fraud within a reasonable time. The sooner you report, the stronger your claim.

Will I get my money back after card fraud?

In most cases yes, provided you report the fraud promptly and have not been negligent (e.g. sharing your PIN). UK banks are required to refund unauthorised transaction losses.

What is a £0 or £1 test charge?

Fraudsters often make a tiny test charge to verify that a stolen card is active before making larger purchases. If you see unexplained micro-charges, check your recent card activity carefully.

Can I get a refund for a subscription scam?

Yes — if you were deceived into signing up (e.g. a misleading "free trial"), you can dispute the charges as fraud or as services not matching description. Contact your bank.

Should I cancel my card if I see a suspicious charge?

Yes, if you genuinely suspect fraud, freeze or cancel your card immediately through your banking app. This prevents further unauthorised charges while you investigate.

Use Detect My Charge to identify any unknown bank charge instantly.