Debit Card Scam in the Bay Area – monitor your finances regularly
The latest high profile debit card scam is a reminder of ‘buyer beware’. We’ve always been concerned about debit cards because they provide direct access to your accounts. The latest scam is specifically on self check counters at Lucky’s but it could have occurred at other locations.
We all know the advantages and speed of using the latest and greatest technological tool but we need to but some automatic roadblocks between our cash flow (and our financial information) and vendors or we must be prepared for nasty surprises.
Why have we been recommending the use of credit cards rather than debit cards? Aren’t credit cards evil and to blame for much of America’s debt? Tools are neither to blame nor inherently evil but improper use can make a tool dangerous. Without financial awareness, credit cards can lull consumers into using them to meet emergencies or fulfill life long dreams/goals. We recognize that credit and debit card transactions are electronic and are therefore quite different from cash. Each electronic transaction carries your electronic imprint and you need to be very careful who has access to that information.
So how do you protect yourself?
We recommend that clients use credit cards rather than debit cards because with credit cards (if you monitor them monthly) consumers have the time to work through the process and reject a fraudulent charge. Such is not the case with debit cards where money is drawn directly out of your account.
In combination with use of credit cards we recommend that consumers establish a simple process to monitor their expenses regularly. We also encourage clients to setup credit card web email alerts on unusual credit card charges.
Overall, we recommend that consumers know their finances well enough so that they at any time have a good idea if their ongoing balances are aligned with their financial plan.
The latest debit crime wave on Lucky self checkout stores ...
More than 300 people have reported unauthorized withdrawals from bank accounts following Lucky’s first identifying the problem on Nov. 11 of account ‘skimming’ at their self checkout cashiers.
Hackers installed ‘skimming’ devices on selected self-checkout aisles, allowing them to collect personal data, like debit card numbers and PINs, remotely. The fraudulent withdrawals are being made from ATMs in Southern California and the San Francisco Peninsula.
The crimes are being investigated by the US Secret Service.
In the meantime, Lucky’s is asking anyone who used a self-checkout lane at an affected store to close out their accounts and change card numbers. Here’s a partial list of affected stores, courtesy of the Contra Costa Times.
MARIN COUNTY
Novato
SAN FRANCISCO
1515 Sloat Blvd.
SAN MATEO COUNTY
Daly City
Foster City
Millbrae
Redwood City
San Carlos
ALAMEDA COUNTY
Alameda
Union City
Fremont: 5000 Mowry Ave.; 35820 Fremont Blvd.
Hayward: 25151 Santa Clara St.
CONTRA COSTA COUNTY
El Cerrito
Pinole
SANTA CLARA COUNTY
San Jose: 5510 Monterey Highway; 200 El Paseo de Saratoga; 844 Blossom Hill Road; 3270 S. White Road.
Santa Clara: 234 Saratoga Ave.
Milpitas
Mountain View
Sunnyvale
SONOMA COUNTY
Petaluma: 939 Lakeville Highway
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Edi Alvarez, CFP®
BS, BEd, MS