Accounting Fundamentals Certification (AFC) Practice Test

Notifying your bank is the most critical first step when discovering unauthorized transactions on your bank statements. This immediate action allows the bank to investigate the situation promptly. By alerting them to the unauthorized activity, you can initiate the process for disputing these transactions, which may lead to reversing the charges and safeguarding your account against further misuse.

Involving the bank is essential because they have the tools and authority to trace the transactions, assess your account's security, and implement measures to prevent additional fraud. They can also provide guidance on what you should do next, such as monitoring your account for further suspicious activity.

While other actions such as changing your passwords or reporting to the police can be important steps in addressing potential identity theft or fraud, they should follow after you have informed your bank. Ignoring the statements can lead to further unauthorized transactions and potential financial loss, so it's crucial to take the issue seriously and act without delay.