I quickly scan my credit card bills and bank accounts on the 15th of each month, sometimes to the dismay of my husband when I start to question purchases. About once a year I find something that doesn’t “look right” but it usually turns out to be nothing.
Most people do not study their bank or credit card statements unless something big jumps out. Criminals know this and often start by slipping through tiny transactions that look harmless.
These small tests are called “phantom” charges. They are often the earliest sign that someone is checking whether they can use your card without your permission.
A phantom charge is a small payment you never made. Scammers send these small amounts to see if the card is active.
If the transaction succeeds and no one questions it, they often move on to larger unauthorized purchases. These test charges are usually only a few cents or a couple of dollars because small amounts are less likely to attract attention.
You can catch phantom charges by watching for transactions that do not match anything you remember buying. Look for strange amounts such as $0.38 or $1.17 and for merchant names that look unfamiliar or vague. Words like Processing, Test, or Payment Service are common red flags. Charges from places far from where you live or shop can also signal trouble.
If you find a suspicious charge, contact your bank or credit card issuer right away. They can freeze the card, issue a replacement, and start an investigation. Make sure to update any automatic payments so you do not miss upcoming bills. It also helps to report the fraud attempt to the Federal Trade Commission (https://ftc.gov).
Here are a few things to lower the chances of fraud:
- Set up alerts for every transaction.
- Check your bank and credit card activities often.
- If your credit card offers “virtual” credit card numbers, use it for online purchases.
A charge of a few cents may not seem important, but phantom charges reveal that someone has your payment details. Quick action can protect your money and your identity.
