Timelines are incredibly important in identity theft cases. As a consumer of a financial institution, you should be well aware of any reporting timelines for fraud for all your personal accounts regardless of whether or not you are a victim of identity theft. Timelines are important to know and understand because they may determine the reimbursement amount and timeframe. Timelines may also protect you from legal liability that may result from any losses that the financial institution may incur.
Many financial institutions have security protocols in place for identity theft and fraudulent activities. If you fail to report the fraudulent activity within the timelines, the financial institution may adjust your reimbursement and recovery rate. The financial institution may also take an extended period of time to reimburse you if you report the crime after the recommended timeline.
The financial institution may also incur a significant loss based on the theft.
Although you may be reimbursed in full, your financial institution may not see reimbursement from the criminal. In this case, the financial institution may seek redress through some other means. If you failed to alert the financial institution to the theft in a timely manner, then you may be subject to a lawsuit filed by the financial institution. Regardless of whether or not you win the suit, you’ll need to hire an attorney and the fees will be costly.