I recently checked my bank account while waiting for coffee and noticed a weird $2.31 charge from a store I’d never heard of. That tiny charge could have easily been overlooked, but it was actually the first sign of something much worse. Unknown transactions on your bank statement – whether big or small – can signal serious problems that need immediate attention. Missing these warning signs might cost you more than just money. What should you be watching for, and what should you do when you spot something fishy?
Small charges from unfamiliar companies or stores
Those tiny charges under $5 might seem harmless or not worth your time to investigate, but they’re often test transactions from scammers. Criminals frequently make small purchases first to check if your card is active before making larger charges. Many people don’t notice or bother to report these small amounts, which is exactly what scammers count on. Even charges as low as $2 from stores you’ve never shopped at or companies with strange names should raise immediate red flags. The moment you spot an unfamiliar transaction, no matter how small, it’s time to take action.
According to fraud experts, these test transactions are becoming increasingly common. They often appear with abbreviated business names or location markers that look confusing – like “SQ*” followed by a business name, or a store name you’ve never heard of in another state or country. One Reddit user reported a small $2.31 charge from “BOMGAARS” they didn’t recognize, which turned out to be the beginning of attempted fraud. Your bank might send an alert for unusual activity, but smaller transactions sometimes slip through their detection systems. This is why regular monitoring of your account is so important.
Multiple charges on the same day from the same place
When you see several transactions from the same merchant close together, especially ones you don’t remember making, something might be wrong. Fraudsters sometimes split larger purchases into multiple smaller transactions to avoid triggering fraud alerts. For example, instead of charging $500 at once, they might make five $100 charges within minutes or hours. This technique, sometimes called “card testing,” helps criminals fly under the radar of fraud detection systems. Even if you regularly shop at the store showing up in these transactions, multiple same-day charges should make you take a closer look.
These repeated charges could also indicate a merchant error where you were accidentally charged multiple times for a single purchase. Either way, they deserve immediate investigation. If you see a pattern of several transactions from one merchant – especially if they’re exactly the same amount – contact your bank right away. Don’t assume it’s just a glitch that will resolve itself. According to consumer protection guidelines, you need to report unauthorized transactions quickly to limit your liability. Using a transaction tracking system can help you spot these patterns before they escalate into bigger problems.
Transactions from locations you’ve never visited
When your bank statement shows purchases from places you’ve never been to, especially in different cities or countries, that’s a major warning sign. Geographic inconsistencies are one of the clearest indicators of fraud. For instance, if you live in Chicago and suddenly see charges from Miami, Los Angeles, and Toronto all on the same day, that’s physically impossible and clearly indicates fraud. Even if the charges are for amounts you typically spend, the location mismatch is what matters. Today’s fraud detection systems are getting better at flagging these geographic anomalies, but they don’t catch everything.
Sometimes these location discrepancies can be confusing because the merchant location shown on your statement might not match where you actually made the purchase. For example, online purchases might show the company’s headquarters location rather than your location. Payment processors like Square sometimes display “SQ*” followed by a business name and location that might be unfamiliar. If you’re not sure about a transaction, don’t ignore it – investigate. Call the merchant directly using the number from their official website (not from your statement), or contact your bank’s fraud department immediately. Using a transaction alert service can notify you instantly when purchases are made outside your normal geographic area.
Automatic renewals you forgot about
Not every surprising charge on your statement is fraud – sometimes it’s just a subscription or membership you forgot about. Annual renewals for services like Amazon Prime, streaming platforms, or software subscriptions can catch you off guard, especially when they only bill once a year. Many people sign up for free trials and forget to cancel, leading to unexpected charges months later. These legitimate but forgotten charges are easy to mistake for fraud if you don’t keep track of your subscriptions. The problem is that these charges often increase over time – that $9.99 monthly subscription might jump to $14.99 without you noticing if you’re not paying attention.
Before reporting these charges as fraud, take a moment to check if they might be legitimate renewals. Look at previous statements to see if the same charge appeared a year ago. Check your email for renewal notices that might have gone to spam. Contact the merchant directly to verify the charge. If you determine it’s a subscription you no longer want, request cancellation immediately and ask for a refund if the renewal was recent. Many companies will refund charges if you contact them within 30 days of billing. Using a subscription tracking tool can help you avoid these surprise renewals by reminding you before they occur, potentially saving you hundreds of dollars annually on services you no longer use.
Random service fees you’ve never seen before
Unexpected fees with vague descriptions like “account analysis” or “service charge” deserve immediate investigation. Banks sometimes add new fees or change their fee structures, but they’re required to notify you first. If a mysterious fee appears without prior notice, something might be wrong. These charges can be particularly confusing because they often have official-sounding names that make them seem legitimate. One person reported finding an “Account analysis past due settlement” fee for several hundred dollars that turned out to be a mistake – their personal account had been incorrectly flagged as a commercial account.
Don’t assume these fees are standard or that you somehow missed the notification. Contact your bank directly and ask for a detailed explanation. Request to have the fee reversed if it was applied in error or if you weren’t properly notified. If the bank representative can’t explain the charge clearly, ask to speak with a supervisor. If you’re still not satisfied, put your concerns in writing – this creates a paper trail that can help if you need to escalate the issue. Some banks have been known to add sneaky fees hoping customers won’t notice or complain. Reviewing your bank’s fee schedule regularly can help you identify when new charges appear that shouldn’t be there.
Double charges for a single purchase
Sometimes you’ll see the exact same charge appear twice on your statement. This could be a merchant error rather than fraud, but it still needs your attention. Double charges often happen with restaurant bills when a server accidentally runs your card twice, or with online orders when a website glitches during checkout. These duplicate charges might also appear when a merchant places a hold on your account and then processes the actual charge without removing the hold first. The problem is that even though one charge might eventually drop off, both charges reduce your available balance in the meantime, potentially causing other payments to bounce.
When you spot a double charge, first check if one is a “pending” authorization that hasn’t fully processed. If both charges have cleared, contact the merchant first to request a refund for the duplicate transaction. Most businesses will correct this error quickly once it’s brought to their attention. Keep records of who you spoke with and what they promised. If the merchant is unresponsive or unhelpful, contact your bank to dispute the second charge. Provide any receipts or order confirmations showing you only made one purchase. Your bank can then begin the dispute process. Using a receipt tracking system helps you keep evidence of your actual purchases in case you need to dispute duplicate charges.
Purchases made at odd hours
Transactions that occur at times when you’re typically asleep or at work deserve extra scrutiny. If you normally don’t shop at 3 AM but suddenly there’s a charge at that hour, it could indicate fraud. Criminals often use stolen card information during overnight hours hoping that you won’t notice until much later, giving them more time to make additional purchases before the card is cancelled. The timing of transactions can be just as suspicious as the merchant or amount. Even legitimate-looking purchases at unusual hours should raise red flags, especially if they’re from merchants you don’t recognize or in amounts that seem odd.
Many banks now offer real-time transaction alerts that notify you immediately when your card is used, regardless of the hour. These systems allow you to confirm or flag suspicious activity right away. If you receive an alert for a middle-of-the-night purchase you didn’t make, contact your bank’s 24-hour fraud line immediately. The sooner you report unauthorized transactions, the better protected you are. Federal regulations limit your liability to $50 if you report a lost or stolen card within two business days, but this jumps to $500 if you wait longer. Setting up transaction notifications on your phone is one of the most effective ways to catch fraud quickly, regardless of when it happens.
What to do when you spot suspicious activity
The moment you notice any suspicious transaction, no matter how small, take immediate action. First, contact your bank using the number on the back of your card (not through links in emails or texts, which could be phishing attempts). Report the unauthorized transaction and request that your card be frozen and replaced. Most banks will immediately issue provisional credit while they investigate. Document everything – take screenshots of the suspicious transactions, note the date and time you reported them, and get a case number for your report. Keep a record of who you spoke with and what they told you.
Federal regulations protect you from unauthorized transactions, but time is critical. You must report suspicious activity within 60 days of the statement date, or you could be responsible for all fraudulent charges made after that period. If you notify your bank within two business days of discovering the fraud, your liability is limited to $50. Wait longer, and it increases to $500. After reporting the fraud, monitor your credit reports for any additional suspicious activity. Consider placing a fraud alert or credit freeze with the major credit bureaus if you suspect your personal information has been compromised. Using a credit monitoring service provides an extra layer of protection against more sophisticated identity theft attempts.
Staying vigilant with your bank statements isn’t just about avoiding fraud – it’s about protecting your financial future. Even small unauthorized charges can signal bigger problems if left unchecked. Make it a habit to review your accounts weekly rather than waiting for monthly statements. Set up transaction alerts for real-time monitoring. Most importantly, never ignore something that doesn’t look right, no matter how small. When it comes to your money, being overly cautious is always better than dealing with emptied accounts and damaged credit later.
