Avoid 4 Innocent Spending Mistakes That Can Register as Credit Card Fraud

Andrew LisaSun, April 19, 2026 at 1:00 PM UTC

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With hacks at credit reporting agencies, corporate data breach scandals and a constant influx of new phishing scams, banks and other scams, credit card issuers are becoming increasingly vigilant about fraud -- for good reason. Fraud is on the rise, and your first defense against victimization is a fraud alert, which your bank issues when it detects a suspicious transaction or worse.

Although many alerts are false alarms, they can result in a frozen bank account or an embarrassing decline at the register. Find out when you might accidentally trigger your own fraud alert and how to protect you against credit card fraud.

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1. Making Purchases in a Strange Place

One of the surest ways to end up with a frozen bank account is to swipe your card when you're out of town. A transaction from somewhere outside of your normal shopping area can be a red flag to your bank, especially if it's outside of your state or country of residence.

Of course, it's likely you're simply traveling, but the fraud department could report a problem, and a freeze can be put in place nonetheless, especially if you're traveling abroad and making purchases overseas. The solution: Notify your bank via app, website or phone before you hit the road. Let them know where and when you'll be traveling so you can avoid a frozen account when you need access most.

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2. Making Unusually Large Purchases

Banks use fraud detection systems to spot suspicious purchases that differ from a cardholder's normal spending habits. Although vacation spending in an unusual place is one way to trigger a red flag, what you purchase is just as important as where. Unusually large purchases can trigger fraud alerts, so contact your bank if you plan to spend what you consider to be a lot of money at one time, such as for a home improvement renovation. Your credit card issuer compares large purchases against your past spending habits and credit profile, so if you suddenly buy a luxury item you couldn't normally afford, it might be a red flag.

3. Spending Big on a Brand New Card

Heavy spending on a credit card you just opened can make it appear that someone opened an account in your name, according to Sarah Hollenbeck, a personal finance and credit card expert at Offers.com.

"Making unusual purchases on a card -- especially a new one -- can sometimes cause fraudulent alerts," Hollenbeck said. "Eventually, anti-fraud algorithms will get to know you and your spending habits. But the key words here are 'once the algorithm gets to know you.' If you get a brand-new card in the mail, activate it and then immediately buy some plane tickets across the world or a rail pass for your trip to Europe, expect that purchase to get rejected -- and expect to have to verify it with your bank."

4. Making a Small Purchase Followed by a Large Purchase

When thieves steal credit or debit cards, they often test their newfound buying power by making a small initial purchase. Then, they move on to their true target, which is often an expensive, high-end item.

Banks and credit card providers, therefore, are inherently suspicious when cardholders buy a pack of gum, for example, and then immediately buy a pricey computer.

In the event that your card is declined while shopping or traveling, don't panic. Just call your bank, confirm that the purchase was legitimate and ask them to remove the fraud alert.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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Source: “AOL Money”