Are Discover Accounts Protected From Fraud?

If you’re facing fraud and Discover won’t listen, we want to hear about it…

The FTC reports that in 2019 23% of people were victims of bank fraud, but that figure increased to 34% during lockdown. Bank fraud and identity theft can be debilitating, not to mention costly. It takes time and effort to close out accounts that have been hacked, get new cards, and file reports about fraud. So what do you do when Discover doesn’t respond to your complaint about hidden fees or problems with your account? We explain.

Are Discover Bank and Credit Card Accounts Protected from Fraud?

Checking accounts have federal protection against fraud thanks to Federal Reserve Regulation E. 12 CFR Part 1026 (Regulation Z) § 1026.12 Special credit card provisions provide federal protection against fraud, where credit card users are only liable for $50 maximum. 

Does Discover Reimburse Stolen Money?

Yes, Discover reimburses stolen money while they conduct an investigation. If fraud is confirmed, you get to keep the provisional credit. Discover regularly monitors your account for any fraudulent activity. You can sign up to receive fraud alerts, in which case, when they identify suspicious activity, they text you or call you with an automated system to have you verify that you were involved. 

Discover has a $0 fraud liability guarantee, so you are never responsible for unauthorized transactions with your Discover Card account.

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Report Fraud to Discover

Discover has additional steps you should take if you suspect fraud on your credit card. They asked that you research it and see whether you verify the retailer or the amount of the charge, and then try to deal with the issue directly with the merchants involved. If that doesn’t work, you can try to dispute the transaction with the card issuer. Because Discover is a financial institution, you might have a Discover card issued through your bank or through a third party, in which case you want to reach out to their respective fraud department first.

If that doesn’t work, then you have to contact Discover customer service immediately if you suspect fraud at 1 866-240-7938. Alternatively, you can refer to the number on the back of your credit card and reach out to a credit card fraud specialist directly.

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What Can a Scammer Do with My Account or Card Number?

If a scammer gets ahold of your Discover Bank account number or card number, they can order checks under your name and write them or cash them illegally. They can move money out of your account or use your account for money laundering. They can make illegal purchases or take money out of an ATM. This also leaves you susceptible to things like identity theft.

Do Financial Institutions like Discover Really Investigate Fraud?

Yes, banks like Discover really investigate fraud. It’s in their best interest to fully investigate any report of fraud so that they can stop the activity before it gets worse. Because of federal protections, you, as the consumer, are not responsible for the cost of fraudulent activity. However, Discover might be on the hook for that money if they are unable to stop the activity early.

It might not seem like Discover is taking your reports seriously, especially if they don’t communicate with you. However, just because you don’t receive regular communication about an ongoing investigation doesn’t mean it’s not happening. Sometimes the cases are very clear-cut, and they don’t have to get any additional information from you in order to follow up with and deal with the fraud.

Related: How to Spot and Report Illegal and Unfair Banking

What to Do If Discover Won’t Help

You can file a complaint against Discover. You might not be able to join an existing Discover lawsuit, but you can sue them in small claims court or file an official dispute against Discover using consumer arbitration.

Share your complaint about Discover with FairShake today. 

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