July 30, 2009
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Protect Yourself From Debit Card Scams, Pt.1
Not the same protection.As consumers continue to trim down on credit card spending, they have turned in increasing numbers to debit cards. There are over 400 million debit cards in circulation in the U.S. and 58% of all electronic transactions are conducted with them. At one time, most home equity loans had a credit card attached to it. Today, nearly 90% of consumer bank accounts are linked to a debit card. With the increase of debit cards, our nation is facing a surge of debit card scams. Thieves aren't just interested in getting their hands on your credit card information; they are desperate to grab your debit card info.
I have heard many individuals boast that they are protecting themselves by switching to debit cards. The simple truth is that consumers typically have greater protection with their credit card. Under federal law, consumers are protected against unauthorized credit card transaction over $50, whereas the $50 cap applies to debit cards only if the consumer reports the unauthorized transaction within two business days. Between the time period of two days and 60 days, the consumer is protected for an amount over $500. Beyond the 60 days, consumers have no protection.
Credit card customers who have switched to debit cards are not the only individuals enjoying the benefits of swiping their card, thieves love sucking dry the bank accounts of unsuspecting consumers. Contrary to popular belief, theft from debit card fraud is much harder to recoup. In many cases, consumers have no other alternative than to close down their bank accounts. It paints a gloomy picture; however, there some ways that you can protect yourself from debit card scams. Key to the process is awareness. Give yourself the peace of mind in knowing you are taking precautions to protect your bank accounts by reading part 2 to learn more.