What is debit card fraud?
Debit card fraud usually begins when a thief swipes the magnetic strip on the back of your card and create a duplicate of your card. The thief is said to ‘skim’ your card. To be able to steal money from your account, they also must capture your PIN. The most efficient do this all at one time – either at a fake ATM or at a vendor’s checkout.
How do you avoid debit card fraud?
Your debit card is the key to your account(s) – it’s for your personal use only. Employ safe debit card use habits:
- Keep your card in a safe place and never lend it to anyone.
- Do not type your PIN at Gas station or unattended Debit machines – it is better to use the debit card as a credit card for these transactions
- Protect your PIN – it’s your electronic signature. Don’t write it down – memorize it. Change it.
- When selecting a PIN, always avoid the obvious: your name, telephone number, date of birth, and address. Make sure your PIN cannot be easily guessed.
- Never disclose your PIN to anyone. No one needs to know it. Change it often.
- If you are uncomfortable about using the machine for any reason, do it later or go to another location. If anything seems unusual about don’t use it.
- To ensure privacy, use your hand or body as a shield to enter your PIN.
- After completing a transaction, remember to take your card and your transaction record.
- If your card is lost, stolen or retained by the ATM notify your financial institution immediately.
- Regularly review transaction history online and report unusual transactions immediately.
- Beware of all e-mail messages claiming to be from your financial institution. In many reported cases of fraud, individuals will receive e-mail from what appears to be their bank asking them to click on a link included in the message. If you click on the link, you are brought to a fraudulent web site that looks just like your bank’s website. This is known as ‘phising’.
Once it happens – what should you do?
1. Report it to the financial institution immediately. They will take several steps to ensure that your account is protected. Immediately changing your PIN would be a good place to start.
2. Contact the credit bureau and have a fraud alert placed on your reports – if the financial institution does not do that immediately. The three are equifax, transunion, and experian.
3. Contact the police, if you’ve not done so already.
4. Make a formal debit card fraud report with the anti-fraud group at the Office of the Controller of the Currency at www.occ.gov
Edi Alvarez, CFP®
BS, BEd, MS