Debit Card Fraud

For those who want the convenience of a credit card, but do not want the interest payments or large bills at month-end, the answer can often be a debit card. Unlike credit cards, which are much like a loan that must be paid back with interest, debit cards offer the convenience of cash and “pay-as-you-go” purchasing.

Unfortunately, fraudsters have learned that debit cards can be like a blank check, enabling them to empty an account before the victim even realizes the card is missing. In fact, the card is not even necessary. With simply a name and a card number, thieves can clean an account while the card is still in the victim’s pocket.

A new threat is one called “skimming.” In this fraud, thieves set up a device that captures the debit card magnetic stripe and keypad information from ATM machines and gas pumps.