Ten Ways You Can Avoid Debit Card Fraud

Having your debit card information stolen or used by someone else to impersonate you can be stressful and damaging to your finances and identity. To avoid becoming a victim of debit card fraud, you should secure your bank accounts with strong passwords, use your credit card for purchases, be cautious of phishing scams and more. 

Continue reading to learn what debit card fraud is and how to avoid becoming a victim of it.

What is debit card fraud?

Debit card fraud occurs when someone uses your debit card without your knowledge or permission. Your card could be compromised if your wallet is lost or stolen. After stealing your card information, a cybercriminal may use your debit card to make purchases in stores or online, or they might withdraw money from an ATM.

How to avoid debit card fraud

Although losing your wallet or getting your debit card stolen might not always be preventable, there are several ways you can reduce your chances of becoming a victim of debit card fraud.

1. Secure your bank accounts

Since your bank accounts hold not only your money but also important personal information, it’s important to protect your bank accounts by having strong passwords and enabling Multi-Factor Authentication (MFA). Your bank accounts need strong passwords consisting of at least 16 characters, combining uppercase and lowercase letters, numbers and symbols to increase length and complexity. Enabling MFA in addition to using strong passwords will keep your bank accounts more secure because MFA requires an additional form of authentication for anyone to access your account. Beyond your username and password, a cybercriminal would need to know a PIN, an answer to a security question, a code from an authenticator app or your fingerprint to access your bank account.

2. Use a credit card instead of a debit card

When making online purchases, you should use your credit card rather than your debit card because credit cards typically offer better fraud protection. If a cybercriminal accessed your debit card information and used it to purchase items online, the money would come directly from your bank account. If your credit card information were stolen instead and used by a cybercriminal to commit fraud, your financial institution is more likely to repay the fraudulent charges since that money isn’t coming directly from your account. Whether you pay with a credit card or debit card, only shop on trustworthy, legitimate websites and refrain from saving your card information on the company’s website in the event of a data breach.

3. Be cautious of phishing scams

You might be tricked into giving up your debit card information through phishing scams. Cybercriminals may impersonate a person or company you’re familiar with to deceive you into revealing private information, like your passwords or card details. For example, a cybercriminal may pose as your bank, sending an email that pressures you to click a link and enter your debit card information by threatening to close your account. In a panic, you may enter your debit card information to protect your money; however, you’ve actually sent your private information directly to a cybercriminal. In these phishing scams, a cybercriminal will create an illegitimate website that appears almost identical to the legitimate one it’s mimicking to trick you into entering your information. If you ever receive an email or phone call from your bank threatening you to give them your debit card information, you should immediately know it is a scam. Your bank will not message or call you unless you have contacted them first.

4. Enable transaction alerts

Every bank has different methods for setting up transaction alerts, but you should enable them to ensure you receive a notification each time your debit card is used to make a purchase. In general, there should be a setting on your bank account’s website relating to alerts or notifications. Select which card(s) you want to receive alerts for, and decide whether to get the alerts through email, text message or push notification. Once these alerts are set up, you’ll be the first to know if someone’s using your debit card without your permission.

5. Learn to spot skimmers

Be careful before inserting your debit card into ATMs or card readers because there might be a card skimmer. A credit card skimmer is attached on top of a card reader by someone looking to steal your card information to commit fraud. When you slide your debit card to make a purchase, a credit card skimmer will process your card information and store the name, number, expiration date and security code associated with the card. You can spot a card skimmer by checking for tampered security seals, misalignments on the card reader, whether the card reader is loose or if it looks different from other card readers nearby. Before inserting your debit card to make a payment or withdraw money, always check for skimmers, especially at places like gas stations, grocery stores or non-bank ATMs.

6. Keep your physical card in a safe place

Make sure to keep your debit card secure to prevent it from getting lost or stolen. There are several ways to keep your physical debit card safe:

• Leave it at home unless you know you’ll be using it to make a purchase.
• Never leave your debit card visible in your car or through a house window.
• If you rely on your debit card for most purchases, keep most of your money in savings instead of checking, in case your card is lost or stolen.
• Link your debit card to your phone’s digital wallet to avoid using your physical card, reducing the chance of card skimming.

It’s important to keep your physical debit card in a safe place to prevent it from not only getting lost or stolen but also being sold to others on the dark web who could commit fraud or identity theft.

7. Report a lost or stolen card immediately

In the event your debit card has been lost or stolen, you need to report it immediately to your bank. You can contact your bank through your mobile app or by phone, and you need to explain your situation to them so they can help. Your bank will most likely close your existing debit card to prevent unauthorized use and send you a new card in the mail. The most important part about reporting a lost or stolen card is to do it as soon as you realize it is missing. The longer you take to report the missing debit card, the less chance your bank has to recover any money spent on unauthorized purchases.

8. Avoid using suspicious ATMs

Beyond the dangers of your debit card getting skimmed, you should be cautious when using ATMs that seem suspicious. Here are some things to keep in mind when you’re considering using an ATM:

• Use an indoor ATM if available, as outdoor ATMs are much easier for someone to attach a credit card skimmer to.
• Only use an ATM if its card reader is securely attached and has an untampered security seal.
• Check the thickness of the ATM’s keypad, as someone may have inserted a different keypad to track your PIN.
• Make sure there are no tiny or hidden cameras at an ATM since someone could be spying on you while you enter your PIN.

9. Use contactless payments

A great way to protect your debit card is by not physically using it. Contactless payments, such as Apple Pay, Google Pay and Samsung Pay, provide you with additional security by encrypting your card information whenever you make a purchase. Instead of physically using your debit card, storing it on your phone reduces the chances of your physical card becoming lost or stolen and increases the security of your debit card. Another way to make contactless payments is by tapping your card instead of inserting it, so you cannot become a victim of credit card skimming. Not only is contactless payment easy to use, but it also minimizes the time you spend making a payment and the chances of your debit card information being stolen.

10. Check your bank statements regularly

By frequently checking your bank statements, you will know immediately if any suspicious activity has occurred on your debit card. Monitor your account closely for any unfamiliar or unauthorized transactions, so you can contact your bank if you notice suspicious activity. Keeping a close eye on your bank statements will help protect you from becoming a victim of fraud or identity theft.

Are debit cards protected from fraud?

Debit cards offer limited protection from fraud compared to credit cards, so it’s important to report fraud immediately for a better chance of retrieving any lost money. If you report fraudulent activity to your bank within two business days of discovering it, there is a higher chance your bank can help recover your funds. However, the longer you wait to report fraud, the more likely you are to be liable for any stolen money from your debit card. This is why it is essential to regularly check your bank statements and notify your bank of any unauthorized transactions as soon as you recognize fraudulent activity.

Stay protected against debit card fraud

Your debit card holds personal information and access to your finances, so it’s important to protect it from being used to commit fraud. An easy way to keep your debit card safe is by securing your bank account with a strong password. Keeper Password Manager has a built-in password generator that creates unique and complex passwords for all your accounts, then stores them in your encrypted vault.

Start your free 30-day trial of Keeper Password Manager today to strengthen your bank account’s security and prevent yourself from becoming a victim of debit card fraud.