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Home > Checking & Savings > ATM & Check Card Safety
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Whether by choice or necessity, consumers
are increasingly relying on their debit cards.
When you use a debit card, the money is
immediately taken from your checking
account. While using debit guarantees that
you pay as you go, these cards have
downsides, including a growing appeal to
thieves. Especially as economic conditions
have worsened, ATM and debit-card fraud
is a top area of concern.
Unlike credit-card thieves, who usually
charge merchandise and then resell it to
come up with money, people who create
counterfeit ATM or debit cards by stealing
your PIN and other account data can simply
pull cold cash from your account. Using a
technique known as skimming, they set up
equipment capturing information when
you input your PIN at ATM machines, gas
pumps, restaurants, or retailers.
Here’s how
you can help protect yourself:
Be vigilant about your PIN at gas stations.
Gas pumps are notorious for skimming
because they’re produced by only a couple
of different manufacturers, and if someone
gets the key to one from a disgruntled
employee, they can insert a skimming
device inside the pump where it can’t be
seen. Use a credit card rather than a debit
card when you fill your tank.
If you must use a debit card at the gas
pump, choose the “Credit” screen prompt.
The purchase will still be deducted from
your account but will be credit-card network
processed, providing greater protection
from liability if fraud does occur.
Use ATMs located at financial institutions.
Reduce risk at ATMs using machines at
financial institutions rather than convenience
stores, airports, or isolated locations.
Thieves need to attach skimming devices to
use the data gathered and that’s more likely
to happen in settings with less traffic and no
surveillance cameras.
However, that doesn’t mean that all ATMs at
financial institutions are immune. If you
notice a change at an ATM you use
routinely, such as a color difference in the
card reader or a gap where something
appears to be glued onto the slot where you
insert your card, that’s a warning sign you’d
want to report to the machine owner.
Closely monitor your CWCU accounts.
Check them regularly—preferably online
rather than waiting for monthly statements
to arrive in the mail. Federal law limits your
liability for fraudulent debit-card charges to
$50, but only if you report the theft or loss of
your card or PIN within two business days
of discovering the problem. If you fail to
report unauthorized charges within 60 days
of the date the statement listing those
charges was mailed, you could be liable for
any unauthorized withdrawals afterward,
including the full value of credit lines or
savings accounts linked to your account for
overdraft protection.
Dealing with debit-card fraud can have a
greater impact on finances than credit-card
fraud. Victims of unauthorized charges on a
credit card won’t be out any money while
disputed charges are being investigated. But
when a thief steals from your account using
a counterfeit debit or ATM card, it’s possible
that the funds won’t be restored until a full
investigation has been conducted.
Closely monitor your Credit and/or place a "fraud alert."
You are entitled to receive one free credit report every 12 months from each of the nationwide consumer credit reporting companies – Equifax, Experian and TransUnion. This free credit report can be requested through the following website:
You have the right to ask that nationwide consumer credit reporting companies place "fraud alerts" in your file to let potential creditors and others know that you may be a victim of identity theft. A fraud alert can make it more difficult for someone to get credit in your name because it tells creditors to follow certain procedures to protect you. It also may delay your ability to obtain credit. You may place a fraud alert in your file by calling just one of the three nationwide consumer credit reporting companies. As soon as that agency processes your fraud alert, it will notify the other two, which then also must place fraud alerts in your file.
- Equifax:
1-877-576-5734; www.alerts.equifax.com
- Experian:
1-888-397-3742; www.experian.com/fraud
- TransUnion:
1-800-680-7289; www.transunion.com
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