Debit Card Fraud, How To Spot it, How To Prevent It

It had been a relaxing weekend visiting my sister in another city. We had just stopped at the store to pick up some groceries for the barbecue we anticipated having. I only had to buy a few items, less than thirty dollars worth of food. When I slid my debit card through the machine, it wouldn't work.

"I'm sorry Ma'am, but you have insufficient funds," the clerk said.

I was embarrassed but indignant. I definitely did have sufficient funds. I had just deposited a big pay cheque two days before and hadn't bought anything but gas until now. Besides, even if there had been a problem with the cheque, I had overdraft coverage for up to three thousand dollars.

I told the clerk all of this, but of course a card declined is a card declined. My sister purchased the groceries.

When I telephoned the bank I found out that over the past few days someone had taken every cent out of the account as well as the overdraft. It was debit card fraud. I couldn't believe that it had happened to me. Luckily, the withdrawals were all made in my home town and I could prove that I was in another place. After a week long investigation, the bank made up for the loss I had been duped out of.

Here are some methods commonly used by debit card thieves:

• They may actually work at a store or receive an incentive to put a duplicate debit card machine behind the til. They swipe your card first on the real debit machine and then again on the one behind the counter to record your information. They note your pin number.
• The above can also be used alone and only swiped once. If this is being done the clerk will not offer you a receipt because the fake machine doesn't print receipts.
• A newer method being used is for the thief to wait for a counter to be unsupervised and then take out the actual debit machine and put their machine in. The next day they come back and make the switch again, now having all the information they need recorded on their fake debit machine.
• Tiny cameras are placed in position at a debit machine and record the card number and your pin as you enter it. New Cards are made with the information.
• Small plastic inserts are placed in the portal where you insert your card. It records your information and then is taken out.

How to best prevent debit card fraud:

• First and foremost, place a daily cash withdrawal limit on your accounts. I set my cash withdrawal limit at twenty dollars. That way, it would take one week for a thief to withdraw just one hundred dollars. Thieves generally want to ditch the card as soon as possible. They won't bother to wait for twenty dollars a day because the risk of getting caught is too great. This is the best way to protect your money and account and yet very few people know about it. You can also limit daily purchases if you want but usually fraudsters want your cash.
• Keep a close eye on your account activities. Use telephone banking to check in with your account balances. You'll notice if there is money missing.
• Do not use drive through debit machines. These are easily tampered with and it is hard to spot a tamper from within a car. Drive through debit machines are highly targeted for debit fraud.
• Always swipe your own card. This will prevent someone swiping your card on a duplicate machine and recording your information.
• Hide your pin number when you enter it on a machine. Use an envelope or your other hand to prevent cameras or people from seeing your pin number.
• If a machine looks different, the keypad has a film over it or it has an extra plastic insert where you put your card, use a different machine.
• Always get a receipt for your purchase. Keep your receipts for at least two days before discarding. (You would be required to present your receipts for the time when debit fraud was occurring).

I hope these tips will help safeguard you from debit fraud. It is a growing problem and not all banks are willing to give you back your money as readily as mine did.