Greg's Corner

Watch for Tiny Charges on Your Bank Cards

By Greg Collier

The holiday season is a time for generosity and joy, but it can also be a time when scammers take advantage of the season’s goodwill. If you spot a small, unexpected charitable donation on your credit card statement, it might not be a simple mistake, it could be a red flag.

Small, unrecognized charges, especially to charitable organizations, can indicate that your credit or debit card has been compromised. When scammers obtain stolen card information, one of the first things they do is test the card. They accomplish this by making tiny transactions, often through charities. These small charges tend to fly under the radar, especially during the holidays when charitable giving surges. If the payment goes through successfully, it confirms to the scammers that the card is still valid and ready for larger, fraudulent purchases.

The timing of this tactic is no coincidence. Around 20% of all charitable donations occur in December, making small, unfamiliar charges feel more plausible this time of year. A $2 or $5 donation might seem insignificant or even well-meaning, but that’s precisely what makes these transactions effective for scammers. People are less likely to dispute such small amounts, especially if they believe it’s an innocent oversight or a forgotten holiday contribution.

To stay ahead of scammers, vigilance is key. Rather than waiting for your monthly statement, make it a habit to check your accounts online regularly. Weekly reviews can help you catch suspicious activity quickly before it escalates. Many card providers also offer transaction notifications via text or email, alerting you whenever a purchase is made. Enabling these alerts adds an extra layer of security, helping you identify unauthorized charges the moment they occur.

If you do spot a charge you don’t recognize, act quickly. Contact your card provider right away to report the fraudulent activity. Taking immediate steps to lock or replace the card can stop scammers in their tracks and prevent further misuse.

This season of giving should be one of joy and goodwill—not frustration. By staying proactive and mindful of your accounts, you can protect yourself from scammers who may try to take advantage of the holiday spirit. Don’t let a small charge turn into a big headache. Keep a watchful eye, and let your generosity this season be on your own terms.