Wednesday

How to Prevent Debit Card Fraud

Cash is King

One of the best ways to prevent debit card fraud is to use cash when you make purchases. Of course in this day in age it's not always safe to carry wads of cash in your wallet or pocket, but it's equally not as safe to use your debit card for every transaction you make.

Despite what banks advertise on TV, it's very easy for a criminal to get a hold of your debit card and PIN number and commit bank identity theft. To prevent this from happening, carry small amounts of cash, preferably no more than $50, if you know or plan on making purchases when you are out and about.

Carry Checks
Yes believe it or not, people still use checks when they shop. If you plan on making purchases over $50, use checks instead of carrying large amounts of cash with you. You don't necessarily need to carry your entire checkbook, but 2-3 checks in your wallet will do.

Although debit cards are more convenient and popular to use, if want to protect yourself from banking fraud, but are
uncomfortable with the idea of walking around with a lot of cash, use checks.

Have a 2nd Debit Card Through a 2nd Checking Account
If it's simpler and more convenient for you to use a debit card instead of carrying cash or checks, then get a 2nd debit card through a 2nd checking account for your everyday purchases.

Believe me, there is nothing worse than having your entire mortgage or rent money stolen from your bank account due to debit card fraud.

It happened to me and it was a nightmare!

With your 2nd debit card, be sure to keep the money you use for your rent, mortgage, student loans, insurances, and monthly bills separate from the money you use for shopping, gas, restaurants, the movies and grocery store.

If you like, you can get a 2nd debit card and checking account through another bank. Otherwise, if you have two checking accounts with the same bank, make sure your 2nd debit card DOES NOT look like your primary or 1st debit card.

Get a different design for your 2nd debit card so you can easily recognize it from your 1st debit card. Also, be sure to keep less than $100 in your 2nd checking account and check your bank accounts on a regular basis.

That way if your 2nd debit card gets compromised and you become a victim of debit card fraud, the thieves will only get away with a little bit of your money. 

Don't or Minimize Using your Debit Card at ATM Machines
This includes the ATM machines at your bank. That's how my sister had money stolen from her. Just because you use your ATM card at your bank doesn't automatically protect you from bank card fraud.

Credit card thieves know all the tricks to get your debit card and PIN number so they can rob you. If you need cash, take the extra time to go inside your bank and see the teller.

Trust me, waiting 15-20 minutes on line is much less of a hassle than waiting a week for your bank to refund your money as a result of debit card fraud.

Never Use Your Debit PIN Number
Using your PIN number is the absolute worst thing you can do if you are trying to prevent debit card theft.

Just because you frequently shop at your local grocery store or gas station doesn't mean the employees there won't steal from you. Business employees can make a second copy of your receipt or program the card machine to capture your card information.

That includes your PIN number.

The next time you make a purchase and openly punch in your PIN number, take look above you at the cash register. See that hidden camera?

Anybody can be sitting in an office writing down your PIN number and easily making you a victim of identity theft.

If you must use a debit card to make purchases or to get cash from an ATM machine, cover your hand as you input your PIN number. However remember, thieves know how to capture your debit card information.

To be on the safe side, select "Credit" when making purchases, see your bank teller to get cash, or use your 2nd debit card!

Online Purchases
Does the bulk of credit card fraud or debit card fraud happen online?

Of course it does.

However, that shouldn't stop you from the convenience of shopping from home. Therefore, use your 2nd debit card and make sure you limit the amount of cash that's in your 2nd checking account.

You can also make online purchases using PayPal or Google Checkout, but just keep in mind that not all online stores will have these checkout options.

Lastly, when making purchases online, always be sure that the website has a security seal like VeriSign that will safeguard you from identity theft. 

More Tips
*If you get a 2nd debit card through a second checking account, make sure your two debit checking accounts are not linked together. You don't want to give thieves any opportunity to gain access to all your money and make you a victim of debit card fraud.

*Get into the habit of checking your debit card account on a regular basis. The longer it takes you to discover that you have been a victim of banking fraud, the harder it will be to claim identity theft to your bank.

*If you see that your debit card account has been compromised, call your bank immediately and report the incident. Be sure to say and to use the words "identity theft" to your bank representative.



*Not all credit cards will have the capability to monitor your charges online like with a online banking. If you are in this situation, make sure to go over your monthly statements for your credit card with a fine tooth comb.

If you see charges on your card that your didn't make, report credit card fraud immediately by calling customer service.