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Debit Card Scam Alert
Published: 04/07/2011 by Kristie Lorette
» Credit
As technology evolves, it seems that scam artists evolve with it. The latest debit card scam involves your caller ID and your debit card. Consumers are receiving calls that show the name and phone number of a financial institution. The callers tell consumers that there was a problem with a recent debit card purchase and they need the cardholder to verify the debit card information. Once you hand over this information, the scammer has what they need to steal your money. Find out how to protect yourself from this and other common scams.
Debit Card Usage
According to a recent survey by Credit-Land analysts, debit card usage is up 58% from 2008 and is expected to increase by 67% by 2013. Since consumers are using their debit cards more and more, thieves are targeting these cards more and more. While targeting credit cards provides information thieves can use to open new credit accounts and make purchases, debit card information cuts out the middle man and provides the thieves with access to your cash.
Other Debit Card Scams
This is not the first scam targeting debit cards either. Debit cards are also targets at ATMs and at gas pumps. At these locations, skimming machines are being installed to read the debit card as it slides in and out of the machine. Since you have to enter your PIN when conducting transactions at the ATM or at the gas pump, it’s also easy for the thieves to get a hold of your personal identification number as well. With all of these scams going around, how can you protect yourself?
How to Avoid Falling Victim
Fortunately, there are steps you can take to prevent your debit card information from falling into the wrong hands. First, if someone calls you identifying themselves as a representative from your bank or other financial institution, do not simply take them at their word—even if the caller ID backs up their statement. Instead, let the representative know that you will call back. Pull out your bank statement, debit card or go to the official website for the bank, look up the phone number and contact your bank directly.
Let the representative know about the call you received. More than likely, the call is a scam because your bank already knows your debit card number, so they don’t need you to verify that. The rest of the personal information the scam artists ask is to obtain the information they need to complete the theft. Again, this is information your real bank already knows or does not need to know.
When using your debit card at gas pumps, choose the credit card option instead of the debit card option. This eliminates the need to enter your PIN. When conducting ATM transactions, use a bank ATM rather than a grocery store, airport or convenience store one. Bank ATMs are less likely to have skimming machines, but pay attention to any abnormal wires or parts on the ATM or any gaps or holes, where the skimming device may have been added to the machine.
