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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.

 

 

 

 

  

By: samaira
Published: 09/26/08


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    6 Posted Comments:

    @ 5:34 am 09/29/08 by Mr. U
    Given the rise of identity theft, it's good to see a guide dedicated to helping people avoid all the various electronic-payment pitfalls inherent to the use of debit cards.
    Reply to this Comment

    @ 5:44 am 09/29/08 by Vasantha
    Timely wake up call! Thanks for sharing such useful information. This article will alert a lot of people to be alert and safeguard against fraud.
    Reply to this Comment

    Banking Cards

    @ 8:32 am 09/29/08 by Jannie Borg Larsen
    Very good and useful article, thank you! At "my" bank it is also possible to choose virtual Master-cards. Only one such card can be used per merchant and you can choose the maximum amount possible to credit your card ever. So if you choose to keep the maximum amount spendable very low, then the risk would be accordingly. It is really easy to make new virtual cards and you can make as many as you wish. This card can be used online and to buy over the phone.
    Reply to this Comment

    @ 11:51 pm 10/02/08 by agihcam
    Thank you for sharing this tip. I was using CC instead of DC all the time. You're right CC is safe since it has a limit, while in DC, they can empty all your account.
    Reply to this Comment

    debit cards for controlled spending

    @ 1:09 pm 10/03/08 by MP Bell
    Thanks for the tips! The only thing useful with debit cards is to control your spending - you can't spend more than what you have, and you have to be disciplined enough to know how much you do have in your account. I keep a minimum amount in my account so if anyone gets a hold of it, I won't lose as much
    Reply to this Comment

    @ 10:15 am 11/01/08 by Topper
    Just to add a few more ideas to yours:

    If you do throw your receipt away do not throw it away at the location.

    Better yet, take it home with you and shred along with other things you shred.

    When making purchases online only use secure sites.
    Reply to this Comment

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