Debit card fraud can cost big money, but experts say you can protect yourself
People who exclusively use debit cards may want to think twice. To minimize the risk of fraud, experts suggest monitoring your bank statements, and opting for credit cards rather than debit cards in some instances.
Debit card scams often target store websites, mobile apps and companies such as Paypal or Amazon, representatives with NexTier Bank said.
They said people should be wary of using debit cards in three situations: at gas pumps and non-bank ATMs, when making large purchases, and when purchasing items online.
Credit cards are safer in these instances because they work like a loan, offer dispute rights and hinder potential fraudsters from directly accessing your money, the bank representatives said.
“Note that when you use debit cards, money goes straight out of your checking account,” said David Kalinoski, AARP associate state director for community outreach in Harrisburg.
Kalinoski said debit card fraud can affect anyone, regardless of age, but senior citizens are more vulnerable.
“Scammers go where the money is,” Kalinoski said. “The 50+ population has more wealth and assets, and, therefore, that is something that makes them a target.”
“I always tell people, ‘Never use a debit card,’” AARP representative Dave Aitken said. “Debit cards let people right into your bank account ... now if that is your only alternative, you’re at some place, you don’t have any credit cards, you don’t have any cash as a last resort, you could (use a debit card) but be aware that you could be leaving yourself really vulnerable for an attack on your bank account.”
A husband and wife at the Butler Senior Center on Austin Avenue said they nearly lost $25,000 in a Microsoft scam that targeted their bank account.
“We thought we were dealing with Microsoft computer company, and it was out of Hong Kong,” the wife said. “The red flags went up when they said, ‘Would you go and get card, gift cards at Target?’”
The Butler Township couple, who asked not to be named, said they were in contact with the scammers for a year after they had bought a fraudulent insurance policy for their computer. They reported the scam to the police as soon as they realized they were dealing with fraudsters.
While the scam was ultimately unsuccessful and the bank froze the funds, the couple’s bank account was accessed by scammers and $25,000 was transferred from their savings into their checking account.
“They used us for a year; that’s how they got all the information they got and they were able to transfer $25,000,” the wife said.
Pat Bauer of Butler, who visits the Butler Senior Center, said she stays vigilant of scams and debit card fraud by checking her bank statements, and gets notifications sent to her phone each time her debit card is used.
“Keep track of your accounts,” Sergeant Cheryl Cranmer of the Penn Township Police Department said.
People who have frequent visitors and home health aides in their home should also make sure their cards are physically secured, she said.
“Best advice is to keep track of where your cards are,” said Cranmer.
Cranmer said cases of debit card fraud that are reported to the police department often involve compromised cards; in these cases, the police department doesn’t have the ability to further investigate. She suggested people get in touch with their lenders or banks as soon as they notice purchases that are out of the ordinary on their bank statements.
In the face of debit card fraud, Kalinoski recommends seniors stay on top of their finances by monitoring their bank statements and report any discrepancies to their financial institutions as soon as possible. He said people should be skeptical of unsolicited calls and individuals asking to be paid in nontraditional methods of payment such as in gift cards and cryptocurrency.
