Identity theft has caused us to rethink the rules. By virtue of the Fair Credit Billing Act (FCBA), you cannot be held responsible for fraudulent use of a lost or stolen credit card so long as it was reported lost or stolen before the transaction. If the thief uses your card before you report it missing, your liability is limited to $50.
OK. Now, here’s the kicker. Any charge billed to you that is not disputed within 60 days becomes your responsibility. This even includes any new accounts fraudulently opened in your name of which you would have no knowledge. Your best credit card fraud protection must include continual credit report monitoring. Otherwise you risk the need to repair credit.
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Dispute Credit Card Charge – Knowing when it is appropriate to dispute a credit card charge is helpful.