Debit Card Traps

We generally assume that debit cards are much safer than credit cards. It can actually be worse because when a debit card is stolen and misused, then their remains no grace period for the card holder. So, you should smart enough to avoid pitfalls.

Most common trick used by debit card thieves is "skimming". Skimmer is a portable device which allows the thief to copy bank account information and security codes and clone the card of the holder. Here are some points to remember for the debit card holders:

Regarding purchase of debit cards:

Purchase only those cards that always require Personal Identification Number (PIN) whether you are at an ATM or at a retail outlet. If you receive only ATM-cum-debit card that do not require PIN for shopping, just return it to avoid traps and ask for a Maestro card instead. It will be secure to use, as every time you use it, you will have to key in the PIN.

Complain:

If someone misuses your debit card, complain to card-issuing bank immediately. If that does not help, after 30 days write to the banking ombudsman in your area.

Remember no bank ever asks for information via e-mail and phone:

Very often account holders fraudulent e-mails asking for bank numbers or other debit card details like the PIN. Such "phishing" e-mails will look like just proper letters from the bank and may bear the bank's logo. Sometimes through phone calls also some people ask for personal or bank details. Remember no bank ever asks for such information via e-mails and phone calls.

Change your PIN:

At retail outlets, before you key in your debit card's PIN, some shopkeepers may ask you for the PIN in order to key it themselves. It may be for your convenience, but you never know. Even if you give your PIN to any shopkeeper in a hurry, immediately go to the ATM and change your PIN.

Keep in mind:

To avoid the trap, everyone should bear in mind that "your card is safest in your hands".

Be cautious on the web:

Suppose you are doing some online shopping, you should use credit card instead of debit card, as in case of credit cards you have got the option of asking for investigation, or else you may refuse to pay.

Check your printed statements:

Check your printed statements every month. Register for online banking and track your money trail frequently. Some banks offer e-mail or SMS alerts whenever your card is used and may even give you your balance. If it gets too low, that could be a warning that someone has copied your card or charged you incorrectly.

Log out:

Make sure at ATM that you have logged out and always get the welcome screen before leaving. Always ensure that you have taken your money, card and successfully logged out.

Guard your ATM statements:

Take your ATM statement with you or tear it up, because anybody finding it can get your account number and balance.

I hope these points will help you guard your debit cards against frauds.