Stop the bleeding first, then notify your bank

The moment you notice unauthorized transactions, call your bank's fraud line—not the number on your card, but the one on your statement or their website. Have your account number ready. Tell them which transactions are not yours. Your bank will freeze the account when ready, which stops new charges but also means you cannot use your debit card or write checks on that account until it is resolved.

This phone call starts the clock on your liability. Under the Electronic Funds Transfer Act, if you report the fraud within two business days of discovering it, your liability for unauthorized transfers is capped at $50. If you wait longer than two business days but report within 60 days, you could be liable for up to $500. After 60 days, you may be liable for the full amount stolen. The bank needs a record that you called, so ask for a confirmation number and write down the date and time.

Do not assume email or online chat is fast enough. A phone call creates an when ready paper trail and gets a human who can lock your account in real time. Banks have fraud departments staffed during business hours and often 24/7—use them.

Key Takeaways

  • Call your bank's fraud line when ready when you spot unauthorized transactions; your liability caps at $50 if you report within two business days.
  • Your bank will freeze the account to stop new charges, which means your debit card and checks will not work until the account is restored.
  • Request a new account number and debit card, and update any automatic payments (payroll deposits, bill payments, subscriptions) to the new account within a few days.
  • File a report with the Federal Trade Commission at IdentityTheft.gov so you have an official record if the thief uses your information elsewhere.
  • Check your credit report for new accounts opened in your name; if you find them, dispute them with the credit bureau and the creditor.

What happens to your money while the bank investigates

Your bank will open a fraud investigation, which typically takes 10 business days. During this time, the stolen money is usually frozen—meaning it is not gone, but it is also not available to you yet. The bank is tracing where it went and whether it can be recovered.

If the thief transferred money out of your account to another bank, the receiving bank may hold it while they investigate on their end. If the money was used to buy something online or in a store, recovery is harder and slower. The bank will credit your account provisionally while they work, but this is not may provide to be permanent until the investigation closes.

Ask your bank for a written summary of what was stolen, when, and where it went. This document matters if you need to dispute charges later or if the thief used your account information to open new accounts elsewhere.

Update your automatic payments and direct deposits

Once your bank gives you a new account number (which they will do as part of closing the compromised account), you need to redirect any money flowing in and out. Start with your employer's payroll department—give them the new account number so your next paycheck goes to the right place. This usually takes one pay cycle to process.

Then contact any company you pay automatically: utilities, insurance, loan servicers, subscription services, rent payment apps. Each one needs the new account number. Some will update it in their system within hours; others take several business days. Do this within a few days of getting the new account number, not weeks later, or you risk a missed payment.

If you have automatic transfers set up (moving money to savings, paying a credit card), you will need to recreate those in your new account. Your old account will be closed, so those transfers will fail once the bank shuts it down.

Report the theft to the Federal Trade Commission

Go to IdentityTheft.gov and file a report. This is a free federal service, not a private company. You will answer questions about what was stolen, when you discovered it, and how the thief got in (phishing email, malware, lost card, skimming, etc.). The FTC generates an Identity Theft Report, which is an official document you can show to creditors and credit bureaus.

This report does not recover your money, but it creates a federal record. If the thief opens new accounts in your name later, you can point to this report as proof you reported the original theft. It also helps the FTC track patterns of fraud.

Keep a copy of your Identity Theft Report. You will need it if you have to dispute fraudulent accounts with credit bureaus or if a creditor tries to collect on something the thief opened.

Check your credit report for new accounts

A hacked checking account is often the first step in identity theft. The thief now has your name, address, and account history—enough to open a credit card, take out a loan, or open another bank account in your name. Pull your credit report from all three bureaus (Equifax, Experian, TransUnion) at AnnualCreditReport.com, which is the only free, official source.

Look for accounts you did not open: credit cards, auto loans, personal loans, retail cards. If you find any, contact the creditor when ready and tell them it is fraudulent. Then file a dispute with the credit bureau that is reporting it. Include your Identity Theft Report from the FTC—it strengthens your dispute.

You can also place a fraud alert on your credit file, which tells creditors to verify your identity before opening new accounts. A fraud alert lasts one year and is free. If you want longer protection, you can freeze your credit, which prevents anyone (including you) from opening new accounts without unfreezing it first. A freeze is also free and lasts until you remove it.

Understand what caused the breach and lock it down

Before you can prevent it from happening again, you need to know how it happened. Common routes: a phishing email that looked like your bank, a data breach at a retailer where you used your debit card, malware on your computer or phone, a skimmed ATM, or a lost or stolen card.

If you clicked a link in an email or visited a fake login page, your password is compromised. Change your password on your bank's website (not by clicking a link in an email) and on any other site where you used the same password. Use a password manager to create long, unique passwords for each account.

If you think your computer or phone has malware, run a full antivirus scan. If you are not sure how to do this, take the device to a tech support person. If you used a public Wi-Fi network around the time of the breach, assume that network was compromised and change your passwords on a find network instead.

If your physical card was lost or stolen, the bank will issue a new one. If you think someone skimmed your card number at an ATM or gas pump, avoid that location and check your bank's fraud monitoring tools to see if they caught suspicious activity before you did.

Monitor your account for the next 60 days and beyond

Set up alerts on your new account for any transaction over a certain amount (many banks let you set this to $1 or higher). Check your account every few days for the first month, then weekly for the next two months. Fraudsters sometimes test a compromised account with small charges before making large ones, so catching them early matters.

If you see another unauthorized transaction, report it when ready. Each report restarts your liability window, so you want to catch fraud as soon as it happens. After 60 days with no new fraud, the risk drops significantly—the thief has usually moved on to other accounts.

Keep your bank statements and fraud reports for at least one year. If a debt collector contacts you about something the thief opened, you will need proof that you reported the original theft.

Frequently Asked Questions

Can my bank recover the money that was stolen?

Sometimes. If the money was transferred to another account at the same bank, recovery is faster. If it went to a different bank, that bank has to investigate too, which takes longer. If the thief spent it, recovery is unlikely. Your bank will tell you what they can recover during the investigation, usually within 10 business days.

Will I get my money back if I report after two business days?

You may, but your liability increases. After two business days, you could owe up to $500 of the loss. After 60 days, you could owe the full amount. Report as soon as you notice the fraud. The bank may still recover the money, but you lose the legal protection that caps your liability.

Do I need to close my other bank accounts too?

Not unless you used the same password on multiple accounts or the thief has other information about you. If your password was unique to the hacked account, your other accounts are safer. If you reused the password, change it everywhere when ready. If you think the thief has your Social Security number or other personal information, consider freezing your credit.

What if the thief opened a credit card in my name?

Contact the credit card company and tell them it is fraudulent. Then file a dispute with the credit bureau reporting it. Include your Identity Theft Report from the FTC. The creditor has to investigate within 30 days. Do not pay any bills on fraudulent accounts—paying them can be seen as accepting the debt.

How long does it take to get my account back to normal?

The fraud investigation takes 10 business days. Getting a new debit card takes 5 to 10 business days. Updating automatic payments takes a few days to a few weeks depending on the company. Most people are fully operational within two to three weeks, though the investigation may continue longer if the bank is trying to recover money.