Home » Culture & Society

Debit Cards and Identity Thieves

Ranked #13,265 in Culture & Society, #264,626 overall

Should I Use My Credit Card or Debit Card to Protect Myself from Identity Theft?

I was checking my bank account, as I do everyday, and was surprised to see a $1 charge on my account for Redbox, a video rental company. Since we had not recently rented from them, my immediate thought was Identity Thieves had our information.

You see once they acquire your information they often test it out with a small purchase and then make a run on your account. I immediately called my bank to see what card was being affected. Not mine... but maybe my husbands and he was at work.

Not knowing what to do I went to the Redbox website and found some interesting information.

-----------------------------------------------

Debbi Carroll is a Certified Identity Theft Risk Management Specialist

Get a FREE 15 minute consultation with Debbi Carroll on your identity theft concerns.
Click on "Book Now" button

Online appointment scheduling for Personal Services

Credit and Debit Card Security at Redbox
Skimmers at ATM Machines with Camera's to Catch your Pin Number
Credit Card Liability in Identity Theft
Debit Card Liability in Identity Theft
Credit or Debit at the Checkout?
How Can I Protect Myself from Identity Theft
Have you been a Victim? Share your story or comments

Credit and Debit Card Security at Redbox

Info from their website

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.

Skimmers at ATM Machines with Camera's to Catch your Pin Number

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.

Credit Card Liability in Identity Theft

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.

Debit Card Liability in Identity Theft

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.

Credit or Debit at the Checkout?

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.

How Can I Protect Myself from Identity Theft

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

Get a FREE 15 minute consultation with Debbi Carroll
Click on "Book Now" button

Online appointment scheduling for Personal Services

Identity Theft on Amazon

New YouTube vids on Identity Theft

Have you been a Victim? Share your story or comments

submit

Reply

DSCarroll1 Jan 26, 2010 @ 11:55 am | delete

Just lost my debit card in Vegas... thank goodness was able to cancel card before anyone got a chance to use it. Still on the alert and my SecureNet program is in effect to protect me.

Reply

DSCarroll1 Aug 27, 2009 @ 9:29 pm | delete

Thanks for your comments and I look forward to you posting your story.

Reply

jacksonp Aug 27, 2009 @ 8:07 pm | delete

Debbi-

I was on the call tonight and it was wonderful. I really appreciate you including me on your calls and other very helpful information you so lovingly share. I am a neophyte computer user but your information seems to make it simple even for me. I just set up my Squidoo account and I am excited to go on to facebook and more. Thank you so much for all of your help. I do have a security story to share and I will do that tomorrow. Again, thanks so much for your help.

Pat Jackson
Executive Sales Director. Ameriplan
Nashville, TN

Show All

Share this Guestbook
- Stumbleupon
- Facebook
- MySpace
- Twitter
- Digg
- Delicious
- RSS
- Email

News Posts from Google

dvice to protect identity often goes unused
You Ask. We Investigate. Identity thieves targeting the dead
Indictments announced in organized check fraud and money laundering ring
PrivacyGuard Survey Finds U.S. Tax Payers Have Low Awareness of Identity Theft ...