Debit Card Theft: How Can You Prevent It?

If you are anything like me, using cash to make purchases is a rare thing. Since the invention of the debit card, life seems to be much simpler. Pretty much anywhere you go to make a purchase, even at fast food restaurants-they accept debit cards as a form of payment. There is no need to worry about waiting for change, or hassling with coins that seem to pile up endlessly-only to end up in a jar somewhere for you to count out later. Those days are over!

With the dawn of the electronic debit card a whole new set of problems has developed. You hear about it on the news, but you never think that it can happen to you. If you use your debit card to make purchases on line, you are at risk. If you make a purchase at a gas station, or a restaurant you are at risk. If you withdraw money from an ATM card machine you are at risk. Debit card theft is on the rise and is becoming a nationwide epidemic. The problem with debit cards is that people are not educated in how to prevent fraud and often feel a sense of security when using them. There are some important tips that might help in preventing debit card theft, and the first step is knowing how the numbers on your card are being stolen.

I work for an insurance company and was recently contacted by one of my insureds because her debit card numbers had been stolen. She had never lost her card or even misplaced the card. It just so happened that she checked her banking statement on line every day-as do I. What she found shocked her. In one day someone had racked up over thirty-two hundred dollars in charges. When the charges were traced, the bank saw that the card had been used in Canada. My insured lives in Indiana and has never been to Canada and does not use her card to make purchases on line...so how did this happen? When she contacted the Indiana state police they gave her some very useful and appalling information. The rise in debit card theft is staggering. What people are doing to steal debit card numbers is even more outrageous. The officer kindly pointed out that the numbers can be stolen simply when you are not looking. His advice was to swipe your own card or be sure that your eyes never lose sight of the card at any point during the transaction. Cashiers and clerks should never step away from the counter with your card. What happens when they step away is this- they are either copying the numbers down, name, and security code OR they are taking pictures of the card front and back with a cell phone. That's right...a cell phone. Then the debit card information is sold along with all of your other personal information. It is as simple as that.

Some other tips to protect yourself from debit card theft is to always sign the back of the card "SEE ID". Make sure that a cashier or clerk always asks for your identification. This may not help with electronic fraud-where money is directly deducted from your account...but it may inhibit someone from stealing the numbers if they feel you are not an easy "sell". Keep an eye on your card. Make sure that the transaction doesn't take more than a few seconds. If you feel that something is not right and are uncomfortable with the way your transaction was handled ask to speak with a manager. If you feel strongly that you are a victim of debit card theft, immediately contact the police and your bank. Freeze your bank account and have a new card issued right away. If at all possible, use cash to make purchases. It might be a little less convenient...but having your entire bank account wiped out is a bit more inconvenient.

Be cautious at the ATM machine! Watch your surroundings and DO NOT forget to take your card out of the machine. Just recently a man went to the ATM machine in our small town and inserted his card to withdraw funds. He saw a man approaching him that looked suspicious. He was so rattled that he rushed through the transaction and forgot to remove his card. I am sure you can imagine what happened next. He walked away and the suspicious man removed the card and spent over twenty-three hundred dollars at various locations. The thief even managed to stop at a local Wal-Mart and buy several hundred dollars in groceries and put himself up in a room at a hotel and spend a great deal of money at the casino. So far...he has not been apprehended.

By the time you realize you are a victim of identity theft or debit card fraud...the damage is already done. What it takes most people years to build in wealth and credit, one person can destroy in one day if given the opportunity.