Piscopo: Protecting Your Debit Card This Season

With the holiday shopping rush upon us, use caution. While many are hurrying to finish their holiday shopping, criminals lurk behind in search of your banking information.

During the holidays when debit card use for purchases increases, so too, does the opportunity for thieves to obtain your banking information. According to the Secret Service, thieves make about $8 billion in fraudulent purchases each year with stolen credit and debit card numbers.

Through a process known as ‘skimming’ thieves are able to capture a bank customer’s card information by running it through a machine that reads the card’s magnetic strip. Those machines are often placed over the real card slots at ATMs and other card terminals.

The devices aren’t typically visible to most users because they’re inside the ATMs and pumps. However, some ATM skimmers can be found by checking for ATM components that look beat-up or misaligned.

With credit cards, users who spot fraudulent charges on their bill can simply decline the charges and not pay the bill. Debit cards draw money directly from your checking account, which can take months to resolve.

How to Protect Your Cards from Skimming

At an ATM: Does the equipment on the ATM look normal and legitimate? If there is a card reader on the machine, give it a slight tug. Don’t use it if a piece falls off. Cover the keypad when you type your PIN code. Withdraw cash from an indoor ATM vs outdoor ATM, or inside of a bank, retail outlet, or other high-trafficked, well-lit place if possible.

At a gas station: Use your hand to cover as you enter your PIN. Not only do thieves use skimming devices, but also small cameras to capture footage of debit card users entering their PINs. If it looks like the pump has been tampered with, go inside and ask the store clerk to swipe your card. With the high potential for fraud in pay-at-the-pump debit transactions, it might make sense to use an alternative such as cash or credit cards.

At a store: Check the point-of-sale device for anything that looks unusual. A camera lens or a device as small as a USB thumb drive could be a sign of a skimming device. You can always ask the clerk to type in your card’s numbers.

Online: Many people do their holiday shopping online with their debit cards, especially for those who don’t like to use credit cards. Unfortunately, the Web is one of the most dangerous places to make purchases because it is susceptible at so many points of the transaction. Malware on a personal computer can compromise data. It could be at the middle point where a thief is eavesdropping on communications via the wireless network. End point of sale with merchants is also susceptible to breach events if not properly secured. At any point it is impossible to know who is handling your information.

At a restaurant: Keep your eyes on your card. Try to position your seat so you can see the area where the employee scans your card. Any time the card is out of your hand, the chance for fraud increases. Some cashiers may keep customer payment information on file, making future orders more convenient, but do not have steps to safeguard that payment information.

Other tips: Check your financial statements. Report suspicious charges immediately to a store manager and law enforcement. Credit card liability is limited to $50. Debit card liability depends on your bank and when the theft is reported.

Wishing you all  safe and happy holidays.