In the USA, federal law (i.e. the Fair Credit Billing Act) sets a liability limit of $50 for a cardholder, regardless of the amount charged by an unauthorized user. This rule works in the event of an unsecured online connection or data breach. If a victim reports a lost or stolen card before an unauthorized transaction happens, he or she will have no liability for charges at all. The theft of personal information is dangerous because, although a victim is not liable for any financial losses, he or she may spend a few years dealing with all the financial and credit fraud caused by the criminals.