Debit Cards and Identity Thieves

Skimmers are out there. Skimming is nothing new. It involves the placement of an illegal device on a vending machine (including redbox), gas station pump, or ATM, and has been around almost as long as the machines themselves. Here's how it typically works:

Thieves place a skimmer on or around an existing card reader, and attempt to make it blend in.
Credit card information is read and stored on the skimming device.
Duplicate cards are created and/or fraudulent charges are made.

You can help. Redbox checks the credit card reader at every redbox on every visit, and you can too. Redbox credit/debit card readers are standardized for all locations.

Identity thieves mount a skimming device over the slot where you insert your card. They mount a hidden camera nearby to record your PIN.

The best way to protect yourself is to cover the key pad so no one can see your pin number.

Consumers are generally aware that credit cards come with generous protections -- their liability for theft is limited to $50, and even that sum is now waived by most banks.

Tip: Use a credit card rather than your debit card when making purchases. It is better that the crooks tap into your bank's money than your own money.

If an identity thief gets your debit card and pin and cleans our your bank account, you need to prove to the authorities that you were not negligent and that it wasn't you.

It is a real hassle for you to get your money back.

If someone cleans your bank account out with PIN debit and you have other bills coming out of the account you might get hit with late fees or NSF fees. It can become a huge mess to straighten our. Most people have automatic drafts for their mortgage, health clubs and a number of other bills. If you are not on top of it the banks will keep charging you NSF fees. It's a spiraling effect.

So what protection do you have?

According to Regulation E, consumers must report a electronic funds transfer problem within two days to insulate themselves from liability, and even then are still liable for $50. Consumers who report a problem within 60 days have their liability capped at $500. But what if you do not discover the money missing from your account for more than 60 days? You may just be out of luck and lose your money.

When you are checking out and the cashier asks you if you would like to pay by credit or debit, what is the best thing to say?

You should always say credit.

You see the information is now moving through a credit card gateway and the money will still come out of your checking account but you are now covered under the protections of a credit card.

Let's say that you get overcharged or their is a mistake and your get charged twice, under the debit card rules you have only 48 hours to report it, after that you are liable for $500 or more.

1. Make sure you use your debit card in places you are familiar with...look for skimmers.
2. Be careful of online transactions. Use a credit card instead. Identity thieves are accessing finacial information form major data bases accross the country.
3. Do not keep financial information on your computer... again hackers.
4. Always choose the credit option when making a purchase so you receive a piece of paper with your signature on it.
5. Pay close attention to your bank statements and report any irregularities immediately.
6. Enroll in an Identity Theft Protection Program

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