Are American Express accounts protected from fraud?

Have you seen fraudulent activity on your American Express account? Has your card been compromised or your bank account used to fraudulently open a new American Express Account in your name? What can you do when American Express won’t act? We explain what steps to take.

Tired of talking in circles with customer service? File an official claim instead:

Are checking accounts protected from fraud?

Under Federal Reserve Regulation E checking accounts have legal protection against fraud, so long as you do your part to report it immediately.  It is also up to you to report things immediately so that your bank can stop any additional fraudulent transactions and save both you and the bank from potential losses.

Does American Express reimburse stolen money?

American Express, like all four of the major credit cards in America, have zero liability for fraud on their credit cards. So if there was a fraudulent charge on your American Express card, you should have that stolen money reimbursed by the company. If a bank’s investigation proves that you were somehow negligent, then you might be liable for all of the stolen money, but most of the time, they will reimburse you for stolen money or fraudulent charges.

Unfortunately, there have been plenty of situations where customers file a dispute for transactions that they didn’t authorize and wait for reimbursement, only to be told that they are responsible for the fraud. One customer noted, “On July ****, 2020, an unauthorized charge was placed on my American Express Serve account in the amount of $1,326. I filed a dispute to this transaction with the fraud department shortly after and was sent a new card in the mail. Upon review, American Express Serve permanently suspended my account, with some funds still remaining, and only mentioned that my account was suspended because of the violation to User Terms of Service: Section 15D. I’ve read their terms of service and I cannot understand how is it that they can suspend my account upon the review of my fraud case in which I provided them all the documents that they’ve asked for. I’ve called them countless times and no one can give me an answer as to why. I’ve never used the card fraudulently and upon someone stealing it and making a large purchase, I’m to blame for losing the card? I lost access to both my account and the money that I still had remaining on the account before completely denying me usage without telling me why.”

Lost funds to scammers? Get American Express to act:

Contact American Express for Fraud

It is up to you to contact American Express as soon as you see fraud in order to minimize your liability. The Fair Credit billing Act puts a cap on your liability of $50. However, it’s up to you to make sure that you report the fraud as soon as it happens. 

After you reach out to American Express, be sure to report any fraud to the Federal Trade Commission.

Do banks really investigate fraud?

Yes, banks really investigate fraud. Investigating fraud claims can help them prevent it from happening to multiple customers which saves them money long-term and keeps their customers happy.

Related: How to Spot and Report Illegal and Unfair Banking

What can a scammer do with my bank account number?

If a scammer gets through to your American Express account, and gets your bank account, they can do a lot of damage. 

• A scammer can use your bank account number to order checks and either:
  • write checks to themselves and then cash them
  • or write checks as payment for things like computer parts, gardening equipment, furniture, or appliances
• A scammer can use your bank account to transfer money through a wire transfer to themselves or to other people
• A scammer can use your account to launder money, depositing large amounts of money through your account so that it isn’t associated with them getting you in a lot of federal trouble

What to Do If They Won’t Help

If you have tried all that, but the bank isn’t responding, or they have denied your request, there are still options. At FairShake we can help you with consumer arbitration when your fraud case is ignored.