Prevent Debit Card Scams: Know How

This is the first guest post on Live Real, Now. It’s brought to you by Sharon Smith of the Oak View Law Group.

In modern times, the ATMs come as a great convenience for the bank customers. The irony however is that ATMs also allow access to criminals who steal personal information from the debit card when it is swiped at the ATM.

The recent technological advances that are invented to open up new horizons are unfortunately being used in the crime against the population. The ATM fraud is on the rise now, although an alleged skimming ring has been busted recently.

How can you protect yourself from such frauds?

Fraudsters make counterfeit ATM cards using a skimmer. A skimmer reads the information on a customer’s ATM card and then it is easy for the scammers to make a duplicate card, using the customer’s card details.

Once a scammer has your details with him, he can even steal your identity and commit identity fraud. To protect yourself from such fraudulant practices, follow the below mentioned tips:

Change PIN frequently: This is the most important point to remember. If you want to be safe from identity theft scams, change your PIN on a regular basis. Always remember, never use your birthdate, phone number or social security number as your PIN as these are easily guessed. Do not share your PIN with anybody neither keep a written record of it.

Avoid using non-bank ATM machines: The risk is higher in case of non-bank ATM machines. Use the bank ATM machines for all your transactions.

Use credit cards or cash for shopping: Major credit cards have 100% Fraud Protection. Some debit cards also offer limited protection against fraud, depending upon how soon you notify the bank. If you use a debit card for purchases, you are unable to establish any credit rating for yourself. In case there is a dispute on a purchase with debit card, you cannot request a stop payment. Also in case of online shopping, avoid using public computers at internet parlours or work computers.

Check the ATM machine thoroughly before using it: The fraudsters can mount a hidden camera inside the ATM so that they are able to watch the PIN number, as you enter them. Check the card slot for any unusual device.

Never let a stranger inside the ATM counter: In case your card is stuck inside the ATM machine, call the branch or the bank helpline. Do not leave the machine. Do not accept help from any strangers. They are actually the scammers who pretends to help you and may ask you to enter your PIN several times. They memorize the number and use it for stealing your money. While using your debit card in a market place or a shop, shield the ATM machine keypad from others.

Check your account frequently: Check for any unauthorized transactions on a regular basis.

Never give out your details: Remember, your bank or the credit union will never call or email you to confirm your details. Millions of such emails are sent to customers everyday. No matter how convincing the email looks, never respond to it. And certainly do not ever send any confidential information like your account details or PIN. This technique of cheating on customers are known as Phishing and is one of the most common scams around the world. Just imagine that, if only a few customers mistakenly replies to such scammers, they can make millions of dollars at the customer’s expense.

Always check the credit card statements thoroughly for any transaction that looks unfamiliar to you. In case you have not made any such transaction, report them to your credit union or bank immediately.

Always keep the bank helpline number handy.

Report any stolen or lost ATM card immediately: Once you inform the credit unions or the bank about the missing card, they would block it. This would prevent any frauds from happening.

This is a major reason why a lot of Americans are in debt now. Although they have not incurred debts, they pay for the misdeeds of a few fraudsters.

Update: This post has been included in the Carnival of Personal Finance.

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