20-07-2013, 03:46 PM
A Number Of Risks Accompany Debit Card Use, And You Might Not Be Protected
A Number Of Risks Accompany.docx (Size: 59.56 KB / Downloads: 16)
Debit card fraud has become a major issue for checking account customers who choose to use this form of payment when making purchases.
Despite their ease of use, debit cards pose a number of risks that can impact owners for the rest of their lives. So what is it about debit cards that make them the riskiest form of payment out there?
Debit Card Fraud Poses a Number of Threats
There are a number of risk factors that accompany debit card use, the primary being fraud.
There are four main types of debit fraud:
In-person fraud: This type of fraud is committed when a thief steals your card and uses it to make purchases at various merchants.
Online fraud: Online fraud occurs when your card information is stolen while making a transaction online. In this case, thieves could use card information to make online purchases or assume your identity.
ATM fraud: ATM fraud occurs when a thief is able to acquire your card and/or pin number and withdraw money from the machine.
Identity fraud: Identity fraud occurs when a thief steals your card to assume your identity. This type of identity theft is especially successful if the thief is able to acquire your wallet with other valuable information like a Social Security card or birth certificate.
Credit and debit card skimming is a popular form of fraud in which a thief installs a machine or camera at an ATM in order to pick up card information and PIN numbers when customers use their cards.