Debit Cards as Vulnerable to Fraud as Credit Cards

   

Posted: Jan 13, 2010

Shoppers are frequently warned to be on guard against consumer credit card fraud, but they may be less inclined to think about the security risks that they face with their debit card as well.

According to Discover, debit cards can be vulnerable to identity theft and other fraudulent activity when shoppers fail to properly safeguard their personal identification numbers (PINs). People are advised to change their passwords and PINs regularly so the information stays out of the wrong hands.

Another thing to watch for is criminals who can steal financial data simply by looking over a person's shoulder or, in some cases, by using so-called skimming devices that can be attached to an ATM machine to steal data.

Discover also advises people to regularly track their purchases online to spot any red-flag activity as quickly as possible, and to promptly report any missing cards so that potential thieves don't get a head start on racking up fraudulent charges.

When it comes to shopping, some consumers may be inclined to use their credit cards for various items because debit cards don't always offer the same level of anti-fraud and identity theft protection that one's credit card company does. A credit card holder, for instance, is typically liable for the first $50 of fraudulent charges, with the credit card issuer assuming responsibility for the rest. A debit card holder, however, can be responsible for the entire cost of fraudulent purchases made with a stolen debit card, up to the amount in the card holder's account.