If you have a debit card, chances are that you use it quite often. Whether you hand it over every morning to buy a coffee, or use it regularly to withdraw cash from the ATM machine, you probably don’t think twice about it. But maybe you should.
According to a recent study by ACI Worldwide, 21% of Americans have dealt with debit card fraud within the past five years. Unfortunately, it seems like crooks are constantly on the prowl, and debit card holders are just another target. But the good news is that there are steps you can take to help prevent your card from being compromised. The best defense against card thieves is to stay vigilant and prepared, and on the lookout for anything suspicious. Here are some tips:
• Watch out for skimmers. Card skimmers are devices that fraudsters install over the legitimate card readers at ATMs, gas station pumps, and other self-service point-of-sale terminals. When the unsuspecting victim inserts their card into the reader, the skimmer records the card’s details so the thief can access them. Some skimmers even come equipped with a hidden camera, or a secondary keypad placed over the real keypad at the terminal, to capture the victim’s PIN number. Always be sure to inspect the card reader before inserting your card. Be wary of any reader or keypad that appears to have been altered or tampered with. It’s also a good idea to glance around at the other surrounding terminals to see if they look like the card reader you’re using. If the card reader at your terminal looks different than the others, it’s likely you’ve spotted a skimmer.
• Protect your PIN. In addition to the hidden cameras that crooks install near card readers, another tactic used by criminals to obtain your PIN is to “shoulder surf”. Simply put, this technique involves the criminal looking over your shoulder while you’re typing in your PIN. To prevent your PIN from being stolen by a thief, it’s always a good idea to cover the keypad with your other hand while you’re entering it. This can help block a camera or a person nearby from seeing what numbers you’re typing.
• Be aware of your surroundings. If someone who appears to be suspicious is hanging around an ATM you want to use, bypass it. The person may be trying to see what PIN you’re typing in, or could even demand your money if you conduct a withdrawal. For these reasons it’s also a good idea to try and conduct your ATM transactions during the day whenever possible. And if you must use an ATM at night, steer clear of those that are located in areas that aren’t well lit.
• Beware of “helpful strangers”. If your card gets stuck in an ATM, don’t accept help from a stranger to retrieve it. While it’s possible that they could be a true Good Samaritan looking to help you out, it’s also possible that they could have set up the whole “stuck card” scenario to begin with. In a common low-tech ATM scam, criminals put a piece of plastic or glue in the card slot, causing your card to get stuck in the machine. They then tell you that entering your PIN again will get it out. They watch as you enter your PIN a few more times, and when that doesn’t work they wait for you to leave and then retrieve your card from the machine with special tools. To protect yourself from this type of trick, it’s always a good idea to notify the owner of the ATM and your financial institution of your situation, rather than seek help from a stranger.
• Keep a close eye on your bank accounts. Check your balance and card activity weekly, if not more frequently. Federal law doesn’t protect debit cards to the same degree as credit cards as far as fraud is concerned. If you notify the bank within two days of discovering the card was lost or stolen, your loss is limited to $50. After two days, this amount jumps to $500, and after 60 days you could be liable for all of the fraudulent activity, depending on your financial institution. In order to easily keep close tabs on your accounts, it’s a good idea to sign up for online and mobile banking. That way you can check your account balances on the go, wherever you are. Another good option is to sign up for email or text message account alerts, if your financial institution offers them. You can typically set them up to receive notifications like balance updates, withdrawal alerts, or security warnings about irregular transactions. Any time you notice suspicious activity in your account, it’s important to report it immediately to your bank.
Debit cards are an extremely convenient way to access your money and pay for things on the go, but it’s important to be aware of their risks as well. Luckily, by staying cautious and alert while using your debit card, you can help minimize your chances of becoming a victim of costly fraud.
According to a recent study by ACI Worldwide, 21% of Americans have dealt with debit card fraud within the past five years. Unfortunately, it seems like crooks are constantly on the prowl, and debit card holders are just another target. But the good news is that there are steps you can take to help prevent your card from being compromised. The best defense against card thieves is to stay vigilant and prepared, and on the lookout for anything suspicious. Here are some tips:
• Watch out for skimmers. Card skimmers are devices that fraudsters install over the legitimate card readers at ATMs, gas station pumps, and other self-service point-of-sale terminals. When the unsuspecting victim inserts their card into the reader, the skimmer records the card’s details so the thief can access them. Some skimmers even come equipped with a hidden camera, or a secondary keypad placed over the real keypad at the terminal, to capture the victim’s PIN number. Always be sure to inspect the card reader before inserting your card. Be wary of any reader or keypad that appears to have been altered or tampered with. It’s also a good idea to glance around at the other surrounding terminals to see if they look like the card reader you’re using. If the card reader at your terminal looks different than the others, it’s likely you’ve spotted a skimmer.
• Protect your PIN. In addition to the hidden cameras that crooks install near card readers, another tactic used by criminals to obtain your PIN is to “shoulder surf”. Simply put, this technique involves the criminal looking over your shoulder while you’re typing in your PIN. To prevent your PIN from being stolen by a thief, it’s always a good idea to cover the keypad with your other hand while you’re entering it. This can help block a camera or a person nearby from seeing what numbers you’re typing.
• Be aware of your surroundings. If someone who appears to be suspicious is hanging around an ATM you want to use, bypass it. The person may be trying to see what PIN you’re typing in, or could even demand your money if you conduct a withdrawal. For these reasons it’s also a good idea to try and conduct your ATM transactions during the day whenever possible. And if you must use an ATM at night, steer clear of those that are located in areas that aren’t well lit.
• Beware of “helpful strangers”. If your card gets stuck in an ATM, don’t accept help from a stranger to retrieve it. While it’s possible that they could be a true Good Samaritan looking to help you out, it’s also possible that they could have set up the whole “stuck card” scenario to begin with. In a common low-tech ATM scam, criminals put a piece of plastic or glue in the card slot, causing your card to get stuck in the machine. They then tell you that entering your PIN again will get it out. They watch as you enter your PIN a few more times, and when that doesn’t work they wait for you to leave and then retrieve your card from the machine with special tools. To protect yourself from this type of trick, it’s always a good idea to notify the owner of the ATM and your financial institution of your situation, rather than seek help from a stranger.
• Keep a close eye on your bank accounts. Check your balance and card activity weekly, if not more frequently. Federal law doesn’t protect debit cards to the same degree as credit cards as far as fraud is concerned. If you notify the bank within two days of discovering the card was lost or stolen, your loss is limited to $50. After two days, this amount jumps to $500, and after 60 days you could be liable for all of the fraudulent activity, depending on your financial institution. In order to easily keep close tabs on your accounts, it’s a good idea to sign up for online and mobile banking. That way you can check your account balances on the go, wherever you are. Another good option is to sign up for email or text message account alerts, if your financial institution offers them. You can typically set them up to receive notifications like balance updates, withdrawal alerts, or security warnings about irregular transactions. Any time you notice suspicious activity in your account, it’s important to report it immediately to your bank.
Debit cards are an extremely convenient way to access your money and pay for things on the go, but it’s important to be aware of their risks as well. Luckily, by staying cautious and alert while using your debit card, you can help minimize your chances of becoming a victim of costly fraud.