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Most financial transactions occur securely, but occasionally, despite your best efforts, you may discover an unauthorized transaction. When an unauthorized transaction is reported, a bank typically gathers information, analyzes the incident, and makes a determination about what happened and what the next steps will be.

Learn more about the process here.

What Qualifies as an Unauthorized Transaction?

Unauthorized transactions are any bank account transactions that the account holder did not approve of. It could be a payment that was mistakenly charged to your account, but it could also indicate fraudulent activity. For instance, a criminal might write a fraudulent check from your checking account or use your debit card to make an unauthorized withdrawal from your bank account without your knowledge.

There are a number of different methods fraudsters may use to try to get access to your checking account, including:

•   Stealing and “washing” a check (meaning erasing the original information and adding fraudulent details)

•   Stealing your debit card (or finding and using a lost debit card)

•   Stealing your information with card skimmers and hidden cameras

•   Conducting a scam in which they try to convince you to share your confidential account info.

What Should You Do If You Find an Unauthorized Charge?

If you find an unauthorized charge, it’s important to take action as quickly as possible. Contact your bank or card issuer’s fraud department, and see what next steps are recommended (more details on this below).

Depending on the circumstances, you may want to freeze or lock your credit as well. You should additionally consider reporting the incident to the Federal Trade Commission, or FTC (ReportFraud.ftc.gov) and potentially the Internet Crime Complaint Center (IC3.gov).

Recommended: Can You Dispute a Zelle Transaction?

How to Report Fraudulent Charges to Your Bank

If you notice a transaction in your bank account that you did not authorize (perhaps a bank alert that you set up informed you), it’s crucial that you contact your bank’s fraud department immediately. The phone number is typically on the back of your debit card, or some banks may offer the option of messaging on their website or in app. A representative can walk you through next steps, such as:

•   Canceling or freezing your debit card

•   Ordering a new card

•   Updating your bank account password (and ideally your email password as well)

•   Starting a formal fraud investigation with the bank

In some cases, the bank’s representative may recommend opening a new bank account to further protect your finances.

Worth noting: If the bank’s fraud detection software notices a suspicious transaction, the bank will generally contact you via text, email, or phone call to verify the transaction. If you don’t recognize the transaction, the bank will begin its fraud investigation.

Recommended: How to Report Identity Theft

The Bank Fraud Investigation Process: A Step-by-Step Breakdown

Whether you as the consumer bring the unauthorized transaction to the bank’s attention or the bank’s fraud detection system finds the issue, the bank or credit union will typically investigate as follows:

Step 1: The Bank Places a Hold on Your Card and Issues a New One

Typically, when there is an unauthorized transaction reported, your bank will place a hold on your card so no further, potentially fraudulent transactions can occur. It will also typically issue a new card, which allows you to regain control of your financial transactions. If there was an issue such as an unauthorized debit directly from the account, the bank may advise putting a hold on the account and opening a new one.

Step 2: You May Receive Provisional Credit for the Disputed Amount

Generally, a bank will issue a temporary credit for the transaction in question as it investigates. If it determines that the transaction was indeed unauthorized, this will become a permanent credit.

Step 3: The Bank Gathers Evidence From You and the Merchant

As the investigation gets underway, the bank will take information from you and the merchant involved. These details may include the date, time, and amount of the transaction and whether it happened online or in person. They’ll also analyze other transaction patterns and consumer behavior. This additional information can help them establish what happened.

Step 4: A Final Decision Is Made and Communicated to You

Based on these details, the bank should be able to determine if the transaction was unauthorized or if there are fraudulent charges — and if the merchant has any blame in the scenario. The bank may or may not reimburse the customer, depending on their findings.

Further, the bank may pursue charges against any criminal involved, if applicable and possible. The bank will also file a suspicious activity report (SAR) if that is deemed appropriate and hand the case over to the authorities.

Recommended: What Can Someone Do With Your Bank Account and Routing Number?

What Are Your Rights Under Regulation E?

Regulation E is a federal rule that allows for implementation of the Electronic Fund Transfer Act (EFTA). It is designed to protect consumers in electronic transactions, like debit card purchases, ATM transactions, direct deposits, and P2P app transfers. (This is separate from the FDIC, which protects you in the very rare instances of a bank failure.)

Specifically, Regulation E establishes rules that guide error resolution, fraud, and liability. By doing so, Regulation E ensures that banks provide clear disclosures and follow fair processes for disputed transactions.

Here are some important details about timing under Regulation E:

•   When consumers report potential fraud, banks — whether a traditional or online bank — generally have 10 business days to investigate the transaction (20 business days if the account was opened in the last 30 days).

•   Once the bank has determined there was an error, it has only a single day afterward in which to correct it.

•   If the bank can’t complete its investigation within 10 or 20 business days, it must issue the consumer a credit to the account for the disputed amount, minus $50, while the investigation continues. Usually, the bank or credit union has up to 45 days to finish their investigation and share their findings.

•   In some cases (such as if the incident occurred in a foreign country), it may take up to 90 days to achieve a final resolution.

How Can You Proactively Prevent Unauthorized Transactions?

While no one can with absolute certainty prevent an unauthorized transaction from ever taking place, there are valuable steps you can take to lower your risk, whether you’re conducting and online . These include:

•   Using unique, complex passwords. Your email, financial accounts, and any other online accounts should have unique and complex passwords. These should be updated often and never reused or shared. You might want to consider using a password manager service to assist with this.

•   Turning on alerts. Bank alerts can be helpful in spotting fraud in real time. Turn on all relevant alerts available in your bank’s mobile app or on its website. You can also monitor your transactions in app or on the site and balance your checking account regularly to help you identify unauthorized charges.

•   Using all the security measures available to you. Multifactor authentication (MFA) and biometric screening (such as facial recognition) add extra layers of protection on top of passwords.

•   Not sharing your PIN. Think of a unique PIN for your debit card, and don’t share it with anyone.

•   Protecting your wallet. Always be smart about where you stash your wallet. Also consider using an RFID wallet. This can block contactless scanning of your cards’ chips, which hold your confidential banking details. Only carry the cards you need; keep the rest at home in a safe.

•   Being careful at ATMs and points of sale. Make sure no one is watching you punch in your PIN when making a transaction (they could steal your card and then use it). Always check ATMs and gas pumps for signs of card skimmers, or devices that fit over the slot where you dip your card and steal your credentials.

•   Recognizing phishing scams. Fraudsters are always finding new ways to get account information. Educate yourself about the latest bank and phishing scams, and always be wary when someone asks for your account information. Just because someone calls or texts saying they are “from your bank” doesn’t make it true.

The Takeaway

Just as it’s important to take basic security measures to prevent your financial information from getting into the wrong hands, it’s also crucial to act quickly if you detect an unauthorized charge on your debit card or a fraudulent transaction in your account. Banks must take reasonable steps to investigate unauthorized transactions and notify you of the results in a timely manner. In addition, many banks have state-of-the-art security features and alerts to help protect your finances.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How long does a bank have to investigate a fraud claim?

In most scenarios, banks have 10 business days to investigate a fraudulent transaction after you report it. If they can’t finish it in that timeframe, they may have to credit your account while they continue the investigation. In total, banks and credit unions have 45 business days to resolve an issue, except for some specific exceptions (like if the fraud occurred in another country).

What kind of evidence do banks look at during an investigation?

When investigating unauthorized transactions, banks typically take details about time, place, and amount from both the account holder and the merchant. They also look at consumer behavior and past transaction data as they work to establish what happened.

Can a bank deny an unauthorized transaction claim?

Yes, after an investigation, a bank can deny an unauthorized transaction claim. If they do so, they must provide a valid reason such as the account holder having reported the transaction too late, the transaction having actually been authorized, or the bank client having failed to take adequate measures to protect their account.

Will reporting a fraudulent charge affect my credit score?

Reporting a fraudulent transaction or charge should not negatively impact your credit score. It might, however, help protect your score by removing incorrect data from your credit history.

What happens if I accidentally reported a legitimate transaction as fraud?

If you accidentally report a legitimate transaction as fraud (say, you completely forgot about an online purchase), it’s important to contact your bank or card issuer immediately to cancel the report. A single instance like this shouldn’t lead to any further problems as long as you notify your financial institution as quickly as possible with the correct information.

How can AI improve fraud detection for banks?

AI can improve bank fraud detection with its power and speed. It can analyze huge amounts of data in real time to spot patterns and identify evolving fraud tactics. This can also minimize false alarms for consumers.

Photo credit: iStock/NoSystem images

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SOBNK-Q425-039

Earning an MBA, or a Masters of Business Administration, degree can increase your salary, teach you specialized skills, and provide you with new career opportunities. But getting your MBA is expensive, with an average cost of $62,600 for a two-year program versus $51,740 for a master’s degree in general at a public school. A degree from a top-tier school can be considerably more, with tuition and living expenses totaling $200,000 for the program.

Just how big of an MBA pay increase you’ll get in return depends on a number of factors, including the school you attend, the field you’re in, and your previous work experience. Here’s what to know about an MBA salary increase and how much you might expect to receive.

Value of an MBA Degree

An MBA degree can make you more marketable to employers, which can in turn help you land a better job and a higher salary, research shows. And while earning your degree can come with a hefty price tag, taking out MBA loans is one option to help you pay for it.

The median starting salary of recent MBA graduates in the U.S. ranges from $85,000 to $120,000. That’s significantly more than the $68,680 starting salary of grads with a bachelor’s degree. Knowing how much you might earn could help you determine if an MBA is worth it.

An MBA can also help you advance in your career. MBA grads typically perform better and move up the ladder faster than other employees. That places them in high demand in the workplace, and 37% of employers plan to hire more MBA graduates in 2025 (up from 17%).

Average Salary Increase with an MBA

MBA graduates may earn up to 70% more than those with just a bachelor’s degree, assuming an entry level salary of $120,000 for MBA grads and $70,000 for those with a bachelor’s degree.

However, the amount your salary might increase once you have an MBA depends on the field you’re in. Here’s a closer look.

Salary By Industry and Job Function

The following industries tend to pay well for those who have earned an MBA, making them some of the best jobs for MBA graduates.

Finance

Many MBA grads pursue a career in finance, and it can be lucrative. The average salary for an individual with an MBA in finance is $175,000, but the amount can be more than $250,000 annually depending on your position.

Technology

Another hot field for those with an MBA is technology, especially as AI becomes more prevalent. The average salary for MBA grads in tech is $162,750 a year. However, your MBA salary increase could run higher still and may even include a signing bonus.

Consulting

Those who work as consultants and have their MBA average about $190,000 annually, but a consultant’s salary may go up dramatically within a few years, especially if they work at a big firm.

Health Care

Health care management is a popular job for MBA graduates. The average earnings are $163,000 per year. Top earners can make over $200,000 per year, but those with less experience may make less than a six figure salary.

Legal

MBA graduates working in the legal field earn a median annual salary of about $225,000. Job title matters, though, with those working as general counselors earning more than as general attorneys.

Manufacturing

MBA graduates in the manufacturing field earn a median annual salary of $165,000, demonstrating the industry’s strong demand for leaders with advanced operational and strategic expertise. Job titles include industrial production manager, purchasing manager, general manager, and senior operations leader.

Entrepreneurship and Startups

MBA graduates in the entrepreneurship and startups field earn a median annual salary of $151,200. However, this can vary substantially. Those just starting out typically earn much less, whereas the income potential for successful business owners could be unlimited.

Factors Influencing MBA Salary Potential

In addition to the field you choose to work in, how much you’ll earn after getting your degree is influenced by such things as the MBA program you choose and your previous work history and salary.

These are the five major factors that can affect MBA salary potential.

School Reputation and Rankings

Although it’s likely to be pricier, going to a top-rated school to get your MBA can pay off in multiple ways. These schools tend to have robust networking programs and employer recruitment opportunities. Some colleges may help prospective graduates find internships and jobs. Also, grads from top 10 schools tend to earn more than those who attend other programs.

Before applying to an MBA program, do your research to see where recent alumni have ended up and which companies have recruitment relationships with the school. For instance, certain coveted employers might always attend a particular school’s job fairs. If a university has connections to companies you might be interested in working at, you may want to apply to their MBA program.

Recommended: Why Accredited MBAs Are Important

Specialization and Concentration

Every MBA program offers different classes, internships, and hands-on opportunities, and it’s important to look for ones tailored to your goals and career path. Choose a program with specialized concentrations in the field you’re most interested in. For instance, some MBA programs specialize in health care while others focus on finance.

If you’re currently in a field that you want to pivot out of — moving from marketing to consulting, say — an MBA could help with career change without going back to an entry-level job.

Work Experience and Performance

The more work experience you have, the more likely you are to score a higher salary once you get an MBA. This is especially true if that experience is relevant to the area of study you’re pursuing. Most people going for their MBA have about five years of experience on the job. And some MBA programs require students to have a certain number of years of work experience before they apply.

Networking Opportunities and Alumni Connections

Strong networking opportunities and access to a well-established alumni network can significantly influence your MBA salary potential. Business schools with active alumni communities provide valuable connections to hiring managers, industry leaders, and recruiters, often opening doors to high-paying roles that might not be publicly advertised. These networks can also offer mentorship, referrals, and insider knowledge that help you strategically position yourself in competitive job markets.

Internship and Recruiting Access

Many top business schools have strong relationships with leading employers who actively recruit MBA students for high-paying internships that often lead to full-time job offers. These internships provide crucial hands-on experience, skill development, and exposure to different industries, all of which enhance your marketability.

Recommended: MBA Refinancing

Choosing the Right MBA Program

It’s important to find an MBA program that fits your interests and goals. Look for programs that offer concentrations in the areas and fields you want to pursue. Then review the curriculum and the courses offered to make sure they appeal to you.

In addition, learn where graduates of the MBA program have ended up. What companies do they work for and what kinds of jobs do they have? You might even reach out to ask how they felt about the program and if they would recommend it.

Location

Where the school is located is also a prime consideration. If you’re working and going to school at the same time, you’ll need to find a program in your area. You could also explore top online MBA programs if you want to take advantage of a particular school’s offerings when you’re unable to attend it in person. These programs tend to cost less than in-person ones, but you may miss out on networking opportunities.

If you’re a full-time student and you have the opportunity to move to attend school, you could choose an MBA program near the area where you hope to work. For instance, if you’d like to be employed in Silicon Valley, a school nearby might be a good choice for you. It may be easier to get an internship there as well as a job after graduation.

Cost

Of course, the cost of an MBA program is likely to be one of the most important factors in your decision. Beyond the tuition, find out the true cost of getting an MBA at any school you’re interested in. This includes living expenses, books, transportation, and so on.

Delivery Format (Online vs On-Campus vs Executive MBA)

In addition to location and cost, you need to consider how you want to learn the information. Some people learn best in a classroom environment where they can ask questions and interact with classmates face-to-face. Others prefer online learning where they can go at their own pace and learn the information on their own time.

Executive MBAs (EMBAs) are typically part-time and hybrid, with a mix of online classes, in-person modules, and intensive residential sessions. Most students can still work full-time while pursuing an EMBA.

How to Pay for Your MBA

There are a number of ways to pay for your MBA, such as student loans, scholarships, grants, employer sponsorships, and more.

Student Loans

You may want to consider both federal and private student loans. Federal loans include Direct PLUS Loans for graduate students from the Education Department. However, those are being eliminated for new borrowers on July 1, 2026.

Borrowers will have to rely on Direct Unsubsidized Loans moving forward. Starting July 1, 2026, borrowing is capped at $20,500 for graduate students, with a lifetime aggregate limit of $100,000.

Students can also rely on private student loans. Private graduate loans may have fixed or variable rates, and are offered by banks, credit unions, and online lenders. Be aware, though, that with private student loans, you will not have access to the same federal protections and programs you would with federal loans, including income-driven repayment plans.

Scholarships, Grants, and Fellowships for MBA Students

Scholarships, grants, and fellowships are some of the most valuable funding sources for MBA students because they do not need to be repaid. Many business schools offer merit-based awards to applicants who demonstrate academic excellence, leadership potential, or significant professional achievement. These programs can cover anywhere from a portion of tuition to the full cost of attendance, making them highly competitive but extremely worthwhile.

Employer Sponsorships and Tuition Reimbursement

Employer sponsorships and tuition reimbursement programs can be ideal for professionals who plan to keep working while pursuing their degree. Many companies provide partial or full tuition coverage as part of their employee development initiatives, seeing it as an investment in building stronger leaders and more skilled teams. For working students, this support can make an MBA far more affordable without taking on significant debt.

However, employer-assisted education typically comes with conditions that are important to understand upfront. Many employers require a commitment to stay with the company for a certain period after graduation, and leaving early may result in repaying some or all of the funds.

It’s best to ask your employer what they cover and what the expected commitment is from you prior to making a decision.

Recommended: Average Salary by State

The Takeaway

Earning an MBA may help you fulfill your career dreams and earn a higher salary. The degree could increase your salary by as much as 70%, depending on such variables as the school you attend and the field you work in. But getting an MBA can be costly, averaging more than $60,000 for a two-year program, and up to $200,000 for top-tier schools.

If you decide that earning an MBA makes sense for you, there are ways to help cover the costs and develop a solid budget. You can explore all options, including scholarships, grants, and federal and private student loans, as well as refinancing your existing loans.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

FAQ

What is the average starting salary with an MBA?

The median starting salary with an MBA ranges from $85,000 to $120,000. That’s far higher than the $68,680 starting salary of graduates with a bachelor’s degree.

Is an online MBA worth the investment?

Online programs offer greater flexibility and are typically less expensive than in-school programs. However, with an online program, you may not have access to all possible networking opportunities or the opportunity to speak with professors face to face. You may also feel less connected to the school and the overall experience.

How long does it take to recoup MBA program costs?

How long it takes to recoup MBA program costs is different for everyone, depending on the price of the program and the salary increase they enjoy after earning their degree. In general, though, it takes grads of two-year full-time MBA programs about three and a half years of working to recoup the cost. Those who enroll in online MBA programs recoup the cost in about two and a half years of work.

What factors most affect post-MBA salary?

Post-MBA salary is most affected by factors such as the reputation of the business school, the student’s pre-MBA work experience, the chosen concentration or specialization, and the industry and location of employment. Networking opportunities and internships during the program also play a significant role.

Do all MBA programs lead to higher salaries?

Not all MBA programs guarantee higher salaries. The impact on earnings depends on the program’s reputation, the student’s pre-MBA experience, the chosen specialization, and the job market. Top-tier programs and relevant industry experience often lead to better job opportunities and higher salaries.

Photo credit: iStock/Xavier Lorenzo

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