Debit Card Fraud

[JohnP]

My wife and I each have separate checking accounts for "discretionary" spending. Got a letter yesterday from my bank saying that "there appears to be activity that is inconsistent with your usual spending pattern." Please call xxx-xxx-xxxx, which I did. There was one debit to my account ($93.95) that I did not make to AEBN which stands for Adult Entertainment Broadcasting Network and another to Zappo's which I think is a shoe store. That charge was denied as the thief did not have my pin number. The bank will not charge my account the $93.95 but it will take another cycle to do so.

I never check my checking account until I get my monthly statement. The gal I spoke with suggest I call their automated checking number at least two or three times a week to check my account. So if the bank you do business with has this service you may want to use it.

[Jimmie in Ky]

This is what the electronic age is bringing us too , but everyone wants the convenience. Call me old fashioned but I still prefer check and cash . Can't nobody steal what is in my pocket. Had oen tried once, if she had been better looking I might have let her got away with it  Jimmie

[JohnP]

Your absolutely correct Jimmie.  I stopped using a credit card several years ago and just recently let my wife convince me to go with a debit card.  I have cancelled my debit card and have gone back to "cash & carry".

[KySongDog]

I will not use a debit card.   The scumbag can clean your whole account account out with a debit card. 

But with a credit card, your loss is limited to $50 max.   So I use credit cards for online use and reservations, etc. 

[pitw]

I have a credit card for my business as when I need a part shipped out I need it now and can't take the time to run with cash.  I didn't use it for a year and half then one day in a store in Edmonton I bought a pressure washer.  Got home the next day and the credit card company phoned wondering if I had purchesed a house in Manitoba .  I asked if it were a good deal but she wouldn't say but she figured I hadn't bought it .

[Hawks Feather]

I normally use my Discover card and they seem to be pretty much on top of things.  I have no idea how they flag purchases, but about a year ago I received a call that was confirming an email that I had not yet read saying that they felt my card had been compromised and they had put a hold on all charges.  The lady asked about one purchase that was on my card and I said that it was not mine.  I asked if there were any others and she said that this one was probably just a way for someone to verify that the number was good.  They took it off my bill and I had a card with a new number the following day.  Needless to say, I was pleased with the service in both catching the start of what could have been a larger problem and the quick replacement of the card. 

I usually don't carry much cash (over $50 I have just been to the bank and will be needing cash shortly) and rely on cards.  I also don't put anything on a credit card that I will not be able to pay for when the bill arrives.  It was one of the things that I stressed to my daughters and both have thanked me for it.  At the time I am sure that they were thinking "here he goes again".  They both have friends that have gotten cards, maxed them out, and are having trouble with finances.  When one of the friends ask about the balance on my daughter's cards they just say that they were taught not to charge anything that can not be paid off when the bill comes.  They do make me proud.  With that being said, my girls don't live in new houses, have a new car, or lots of fancy things in their home like some of their friends who are have maxed out credit cards.  But they also don't have any calls from people wanting their money.

Jerry

[HaMeR]

My debit card was nearly compromised once. Had it not been for the thieves stupidity it could have been bad. I will PM what they did wrong but not post it on an open forum. The system they used is a big red flag to most businesses that accept them online or over the phone.

[alscalls]

My checking acct. was emptied about 8 years ago when I bought a hunting Lic. online through the WV DNR!
The bank said it was removed from an ATM in Europe!!
I asked them that if my checking acct was so small one could wipe it out from an ATM how in the heck could I afford to go to Europe!!!!   

They gave me my $$ back.....  

[bigben]

I use a check card.  which is allmost the same as a credit card.  that is what I ring it as when I use it.  but if there is any unauthorized spending it gets put back.  it needs my signiture and ID card to use.  I had a few times that I had ten bucks missing here and there but it all got put back.  each time I canceled the card and got another.

[Okanagan]

I will not use a debit card.   The scumbag can clean your whole account account out with a debit card.  

But with a credit card, your loss is limited to $50 max.   So I use credit cards for online use and reservations, etc.  

Ditto.  

The ONLY thing I use a debit card for is to draw cash from a bank, usually my own bank.  My wife and I travel quite a bit, some internationally, and in countries and places where there are international banks, a debit card is WAY the easiest way to get local cash.  Our solution was to open a special bank account for such travel debit use only, in a different bank with a different bank company from our main account.

I.e. if your normal bank is Wells Fargo, then go to a Bank America for the special account.  In the special account, before a trip we put in a few hundred dollars, enough to draw on for the trip needs.  If somebody steals our debit card identity, our losses are limited to the amount we have in the Bank of America, not our main bank accounts in Wells Fargo.  Don't know if I'm explaining it well but that's my solution to using the convenience of a debit for getting cash from an ATM while not exposing your entire bank account(s) and bank business to theft.

IMO, using a debit card to buy gas or groceries etc. is a convenient way to play Russian Roulette with my ID and finances.

[CCP]

Didn't realize so many had problems with their debit cards. I was always a cash and carry guy but the last 2 years I use the debit cards exclusively. Rarely tote cash I do stop at the ATM on monday morning and get 40 out for tips and such.

When I had just the one on 2 occasions I had my bank call me and say my card may have been compromised and they canceled them and sent me another.Never did see an additional charge. Now I have 3 one for my home stuff one for my business and one for paypal.

A coworker of mine had recently used his on line the next month he had 2 extra charges of 49.95 on his and went to the bank and they credited it back to his account that day. I only use the Paypal one online. I have done my banking and bill paying online for the past 3 years without a problem.

I have had a few charges added to my credit cards through the years but after 20 min pushing buttons then on hold for 20 min then a 20 conversation they were all taken off.

The bank told me if I had any charges on my debit card that wasn't mine or someone cleaned me out it would be the same as them being robbed at the bank and I would get my money back. Never had more money in my account the FDIC couldn't cover. If someone robbed me at gun point FDIC want help me.

[Okanagan]

Didn't realize so many had problems with their debit cards.

I've never had a problem with a debit card, except one time when the bank computers went wonky and wouldn't let me withdraw money when I was broke a thousand miles from home.  My goal is to reduce the risk of debit card trouble as much as I can while still using them a bit.

Re stolen debit card:  A bank officer named Debbie recently told me that the bank would cover my losses if someone steals my debit card and withdraws money from my account.  She gave an example of the bank covering a $50 loss.  I told her that all of the legal advice I'd read said that banks were not liable for debit card theft and did not have to limit customer loss like the law requires for credit cards.  She stammered a bit but kind of lamely said she thought that the bank would cover losses.  I asked if she could verify that in writing and she could not.  All I know is that the folks who know the business say that customers are not protected from loss of any size with debit cards, just the opposite of credit cards, which limit my loss to $50.  Debbie agreed that my seperate account in another bank was an iron clad loss limit.

I don't want debit card trouble and try to avoid it by limiting use and risk of it.   I don't want to stand in front of a bank or a court and say that the bank should return my stolen money because Debbie said so.

[CCP]

She stammered a bit but kind of lamely said she thought that the bank would cover losses.  I asked if she could verify that in writing and she could not.  All I know is that the folks who know the business say that customers are not protected from loss of any size with debit cards,

Okanagan glad you posted that I will have to check into it more. You guys got my wheels a turnin in my head may have to rethink this stuff.

THANKS

[KySongDog]

Here is what I found concerning the liability limits of a credit card vs. a debit card:


Federally Imposed Maximum Liability for Unauthorized Card Use (United States) Maximum Card Holder Liability

                                                 Credit Card      Debit Card

Before Use                                                $0               $0

Within 2 business days                            $50              $50

After 2 but before 60 business days          $50              $500

After 60 business days                            Unlimited    Unlimited


It is critical that you find an error within 2 days of a fraudulent transaction concerning use of a debit card.  A credit card gives you more time to receive and review your statement.

[iahntr]

I'm curious to see what our bank says about this too.
I use mine several times a week. Never had any problems.
I do check our account several times a week.

[CCP]

I do check our account several times a week.

iahntr like you we check it several times a week also.

Shop anywhere with absolutely no risk

Your peace of mind and protection are paramount to FNB Visa debit card holders. Visa's Zero Liability policy is our guarantee that you won’t be held responsible for fraudulent charges made with your card or account information.

Did just find this on my paper work from the bank. Seeing it in writing on my bank statements does make me feel better. I ask the wife and she said we would not have one if it was any other way. I should have known she done her home work first.

[Okanagan]

Thanks for checking into this.  That's GOOD news.  I think they have changed the laws fairly recently probably due to consumer pressure.  My info is at least two years old or more, except for the recent talk with Debbie the bank employee.

Wild story:  a friend of mine got a new credit card for his fair sized business and told them absolutely NOT to mail it to him but that he would pick it up in person.  They mailed it to him.  He never got it and I think he found out they had mailed it when he went to pick it up.  His first month he got a statement with over $30,000 owing for money spent in Thailand at bars and girlie joints.   He wasn't liable.

[pitw]

How in the "L" do you check it within two days if you only get a bill once a month .

[FinsnFur]

Same way you check the forum, log in.

If your bank offers online access to your account, It'll show you all your deposits, their dates, your up to the minute card transactions, where they took place and your balance.

[pitw]

So what you are saying is put all my info out on the web or even on my computer[like I wouldn't be an easy mark for any hacker ] so that anyone could steal it and drain everything or face a charge cause I don't go on within two days crap,crap,crap,