When you make a purchase with a debit or credit card, are you worried about your sensitive information being compromised? It’s hard not to be these days, given the frequency of reports regarding data breaches and identity theft. On top of it, there are constant warnings around us about scammers phishing for credit card numbers using bogus emails and websites.
Given the focus on credit cards, you might be surprised to learn that consumer experts are equally concerned with suspicious activity involving your debit/ATM card.
A Quick Look at Debit Card Fraud Statistics:
- In 2022, there were nearly 70K Americans that were impacted by debit card fraud. This increased by 12% from the previous year.
- The amount of money lost by debit card fraud is expected to exceed $165 billion throughout the next decade.
- All types of debit card and credit card fraud are on the rise.
Fraud is still a big concern, and scammers are finding ways to outwit the EMV chip that helps make our cards more secure. So as an active consumer, what should you do to ensure your information is secure? At First Bank Texas, we recommend considering three takeaways:
- Take precautions when using your card.
- Monitor your checking account for unauthorized transactions, using online banking tools.
- Know what to do should you have a problem.
Beware of Skimmers at Unknown ATMs
Did you know that someone can steal your debit card information and use it, without having the physical card? Those same phishers also pursue debit card information online. Dishonest employees can eyeball your card and PIN numbers when you make a retail purchase. In addition, checkout terminals at retail stores can be hacked.
And then there’s something called the “skimmer.” Put simply, small devices with tiny cameras can be secretly attached to ATMs or retail terminals and illegally record every debit card transaction. So, watch for anything unusual near the card entry slot when you use retail terminals or ATMs. Of course, sophisticated scammers often place skimmers inside terminals, where they can’t be seen. But if your card doesn’t enter the slot smoothly, that can be a warning sign. And if you do notice this, call the financial institution that owns that ATM immediately to report a potential skimmer.
See the Light
It’s best to use only ATMs that are inside of or adjacent to a bank. They tend to have better security than machines at convenience stores, restaurants and other places. Otherwise, choose ATMs in well-lit areas. Those who are looking to conduct fraudulent activity often avoid locations where they might get caught installing a skimmer.
The “well-lit” rule goes for other places, such as gas stations. If you’re paying with a debit card, use a pump that’s close to the building. A better practice also is to walk the card inside and pay at the counter.
It’s also good to avoid using debit cards in establishments with high employee turnover, such as restaurants and low-end retailers. These types of places simply don’t do the type of background checks that might detect dishonest applicants.
Monitor Your Account
One silver lining with debit card fraud - it’s fairly easy to spot. Consumer advocates suggest you take these steps:
- Use online banking. Check your balance and recent transactions daily and be diligent of purchases or withdrawals you didn’t make. You can easily do this when logging into First Bank Texas online banking.
- Sign up for alerts. At First Bank Texas we’re always on the lookout for unusual activity in your account. If you set up alerts in online banking, we will contact you if we see anything that looks suspicious.
- Switch to E-Statements. If you miss something while monitoring online banking, you might see it while viewing your monthly electronic statement. Signing up for E-Statements also eliminates the possibility of having account information stolen from your postal mailbox.
- Keep several accounts. Your First Bank Texas checking account is a great place to keep money for everyday expenses. But consider moving extra cash into a savings account, money market or certificate of deposit (CD). Doing so could limit financial damage, in the event you become a debit card fraud victim. Plus, you’ll earn interest on your deposits.
Report Problems Quickly
At First Bank Texas we share our customers' concerns about debit card fraud. Please contact your local North Texas branch by phone or mail to report fraudulent activity. To make sure you’re protected against other forms of fraud, be sure to check out our tips online for preventing identity theft.
