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Debit cards: easy to use, easy to rip off

Wednesday, July 29, 2009

With almost 90 percent of U.S. households using a bank account with a linked debit card, they have become the go-to card for family purchases. As their popularity has risen, so have opportunities for scammers to steal your money.

Appealing to consumers because of how easy and widely-accepted they are, thieves are attracted by the possibility of a direct link to your bank account. It can be very hard to someone once they gain access to your account. By federal law, your liability for unauthorized transactions with a credit card tops out at $50. For a debit card, the $50 limit only applies if you notify your bank within two business days after the theft occurs. If you fail to report unauthorized charges within 60 days after you receive a bank statement, you might end up owing the entire stolen amount. For some, actually closing the account becomes the only way to stop the theft.

Some scams begin as pop-up ads that appear once you've made a purchase online with your debit card. Clicking on the ad automatically signs you up for a "membership," for which you'll be charged a set fee every month. Unfortunately this type of scam is technically legal so make sure you really, really trust the advertiser enough to click on their ad in this situation. Also, carefully heck your bank statement every month for unauthorized charges and tell your bank immediately if you see any.

Likewise, phishing scams pretend to be something they are not: an email from your bank asking you to verify information like your debit card number. NEVER respond to an email purporting to be from your bank; they will not communicate with you regarding your bank account, debit card, or credit card this way. Some clever thieves even set up fake bank websites that look like the real thing. Again, don't click on the links in these emails or respond to them.

Skimming has grown into a profitable field for many criminals. Consumers across the country have had their debit cards skimmed - scanned by electronic devices that read your card number - at restaurants, gas stations, and ATMS. Though it can be difficult to protect against skimming at your favorite restaurant, you can protect yourself by only using ATMs at bank branches which have surveillance cameras and other security.

Other simple ways to avoid debit card scams is to only shop at websites with secure online purchasing, turn off your computer when it's not in use, stopping hackers who might want to access your information remotely, and install reputable anti-virus and anti-spam software on your computer.

To learn more about electronic banking and protecting your debit card, or to file a complaint, visit the Federal Trade Commission