Report fraud to your bank first, then to the card networks and law enforcement if the loss is significant

When fraud happens on a teen's checking account, the clock starts the moment you notice it. Call your bank's fraud line when ready—not the general customer service number, but the dedicated fraud department. Most banks have this number on the back of the debit card or in your online banking portal. Tell them which transactions are fraudulent and ask them to freeze the account right away. The bank will open a dispute case and begin investigating within 24 hours.

Your teen's account is protected under the Electronic Funds Transfer Act, which limits liability to $50 if you report unauthorized transactions within two business days of discovering them. If you wait longer than 60 days to report, you lose all protection. The bank will issue a temporary credit while they investigate—usually within 10 business days—and a final decision within 45 days.

After the bank, contact the card networks if a debit card was used. Visa, Mastercard, and Discover each have fraud reporting processes separate from the bank's. Your bank can file this on your behalf, but you can also report directly through their websites. This creates a second record and speeds up the investigation.

Key Takeaways

  • Call your bank's fraud department when ready and ask them to freeze the account; do not wait for a statement to arrive.
  • You have 60 days to report fraud and keep your liability at $50 or less under federal law, but reporting within two business days removes liability entirely.
  • The bank will issue a temporary credit within 10 business days while they investigate, and a final decision within 45 days.
  • File a report with the Federal Trade Commission at IdentityTheft.gov if the fraud involved identity theft or if the loss exceeds what the bank will cover.
  • Keep copies of all correspondence with the bank, including case numbers, dispute letters, and the fraud investigation timeline.

What information the bank will need from you

Have your teen's account number and the debit card number ready when you call. The bank will ask for the specific transactions that are fraudulent—the date, the merchant name, and the dollar amount. If your teen made some transactions and you are unsure which ones are legitimate, go through the statement together first. The bank can only dispute the ones you identify as unauthorized.

You will also need to describe how the fraud likely happened. Did someone steal the physical card? Did your teen share the PIN or card number with someone? Was the account number compromised online? The bank uses this information to determine whether the fraud was due to negligence on your teen's part, which can affect whether they cover the full amount. If your teen gave out the PIN willingly or shared login credentials, the bank may deny the dispute.

Gather any evidence: screenshots of unauthorized transactions, emails from the merchant, or communications with whoever made the charges. If your teen received a text or email that led to the fraud, save that too. The bank will ask for these during the investigation.

The dispute process and timeline

Once you report fraud, the bank assigns an investigation number. Write this down—you will need it for every follow-up. The bank will send you a written dispute form to sign and return within 10 days. This form documents what you reported and confirms you are disputing the charges.

The bank then contacts the merchant where the fraudulent transaction occurred. The merchant has 10 business days to respond with evidence that the transaction was legitimate—a signature, a PIN entry, an IP address match, or a delivery confirmation. If the merchant does not respond or cannot prove the transaction was authorized, the bank reverses the charge.

You will receive a temporary credit within 10 business days of filing the dispute. This is not the final decision; it is a provisional credit while the investigation continues. The final decision comes within 45 days. If the bank rules in your favor, the temporary credit becomes permanent. If they rule against you, they will debit the account again and explain why.

When to file a police report

If the fraudulent charges exceed $500 or involve identity theft—someone opened new accounts in your teen's name or used their Social Security number—file a report with your local police department. You do not need to wait for the bank's investigation to finish. Bring copies of the fraudulent transactions, your dispute case number from the bank, and any evidence of how the fraud occurred.

The police report creates an official record that helps if the fraud continues or if the same person targets other accounts. Some police departments file reports online; others require you to come in person. Ask whether they will provide a report number when ready or mail it to you later. You will need this number for the Federal Trade Commission.

If your teen's identity was stolen, also file a report with the Federal Trade Commission at IdentityTheft.gov. This is separate from the police report and the bank dispute. The FTC creates an Identity Theft Report, which you can use to dispute fraudulent accounts opened in your teen's name and to place a fraud alert on their credit file.

Protecting the account while the investigation is ongoing

Ask the bank to issue your teen a new debit card with a new number. The old card should be canceled when ready, even if only some transactions were fraudulent. A new PIN should also be generated. Your teen should not use the old card for any reason during the investigation.

Change the online banking password and any security questions. If your teen uses the same password on other accounts—email, social media, school portals—change those too. Fraudsters often test stolen credentials across multiple sites. Enable two-factor authentication on the bank account if it is available; this requires a code sent to your phone or email before anyone can log in.

Monitor the account daily for the next 30 days. Check for new unauthorized transactions, unexpected transfers, or changes to the account settings. If you see anything suspicious, report it to the bank when ready. Some banks offer free credit monitoring for fraud victims; ask whether your teen is covered.

Documentation you need to keep

Create a file with the bank's case number, the date you reported the fraud, and the name of the person who took your report. Keep copies of the written dispute form you signed and returned. Save all letters from the bank about the investigation, including the temporary credit notification and the final decision letter.

If you filed a police report, keep the report number and a copy of the report itself. If you filed with the FTC, save your Identity Theft Report number. These documents prove you reported the fraud within the required timeframe and will help if the bank denies your dispute or if the fraud happens again.

Do not discard statements or transaction records for at least one year. If the bank's investigation takes longer than expected or if you need to dispute the same charges again, you will need the original documentation.

What happens if the bank denies your dispute

If the bank rules that the transaction was authorized—perhaps because your teen did share the card number or PIN—you can appeal. Request a written explanation of why they denied the dispute. Banks must provide this within 15 days of their decision. Review it carefully; sometimes the merchant's response contains an error or the bank misunderstood your report.

If you believe the bank made a mistake, send a written appeal to the bank's dispute department with new evidence. Include copies of your original dispute form, the bank's denial letter, and any additional documentation that supports your case. The bank will reconsider within 30 days.

If the bank denies your appeal, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at ConsumerFinance.gov. The CFPB investigates complaints against banks and can order them to reverse charges if they violated consumer protection laws. This process takes longer—usually 30 to 60 days—but it is free and does not require a lawyer.

Frequently Asked Questions

How long does it take to get my money back?

The bank must issue a temporary credit within 10 business days of your dispute. This is money you can use when ready. The final decision comes within 45 days. If the bank rules in your favor, the temporary credit stays in the account. If they rule against you, they will remove it.

What if my teen was careless and gave out the PIN?

The bank may deny the dispute if your teen voluntarily shared the PIN or card number. However, if your teen is under 18, the bank may still cover the loss because minors have limited legal responsibility for their accounts. Ask the bank whether your teen's age affects the dispute outcome.

Can the fraudster use the account again after I report it?

Once you report fraud and the bank freezes the account, new transactions should be blocked. However, if the fraudster has the card number and PIN, they may try. Ask the bank to cancel the card when ready and issue a new one. Monitor the account daily for unauthorized activity.

Do I need a lawyer to dispute the charges?

No. The bank is required by law to investigate disputes at no cost to you. If the bank denies your dispute and you believe they are wrong, you can file a complaint with the Consumer Financial Protection Bureau for free. A lawyer is not necessary unless the amount is very large or the fraud is part of a larger crime.

What if the fraud happened because of a data breach at a store or website?

The dispute process is the same. Report it to the bank and file a dispute. If the merchant's negligence caused the breach, the bank may be more likely to rule in your favor. You can also file a complaint with the FTC about the merchant's security practices, though this does not directly recover your money.