How to read a bank statement and spot charges you don’t recognize
Checking your statement regularly is one of the easiest ways to catch mistakes and fraud early.
The parts of a bank statement
- Opening and closing balance: how much was in the account at the start and end of the period.
- Money in: salary, transfers and refunds.
- Money out: card payments, direct debits, standing orders, transfers and withdrawals.
- Fees and interest: account fees, overdraft charges, and interest paid or earned.
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Why a charge might look unfamiliar
Many genuine charges show a different name from the shop you used. A café might appear under its parent company’s name, or a payment processor’s name. Online purchases sometimes show a city you’ve never been to, because that’s where the company is registered.
Before assuming fraud, check:
- The date and amount. Do they match anything you bought, including online orders and subscriptions?
- Whether someone else in your family uses the card.
- Small test charges, refunds or pre-authorizations from hotels, fuel stations or car rentals.
Signs it may be fraud
- Several small charges in a row, which are sometimes used to test if a card works.
- Purchases in a country you haven’t visited and don’t buy from.
- A new subscription you didn’t sign up for.
- A charge right after you entered card details on a website you weren’t sure about.
What to do
- If you suspect fraud, contact your bank right away using the number on your card or the bank’s official app. Not a number from a text or email.
- Ask them to block the card and send a new one.
- Ask them to dispute the charge. Many banks have time limits for reporting, so act quickly.
Watch out: Scammers sometimes contact people pretending to be the bank’s fraud team. If anyone calls about fraud and asks for codes or passwords, hang up and call your bank yourself.
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