OT debit card fraud

[rwsaunders]

I was stung by a phishing operation ($1.00) that the bank caught while on vacation in August, but recently my daughter was tagged for $1,100 from a fraudulent online purchase. It took a week to resolve her issue, but had it been a credit card, it would have been immediately addressed via the fraud protection policy of the cardholder. We didn't want her to have a credit card, as we saw no need from a college student's perspective.

What's scary is that her fraud issue involved a purchase from an online computer retailer that she had never used. The perp set up an online account, used her debit card billing address and account number to make the transaction, and the item was shipped to their address. This apparently was the key according to the police...the two addresses, although it can't be that uncommon. According to all involved, the problem is apparently the bank's as they approved the transaction.

We only found out about the fraud when she received her bank statement. I had to file a case with the local police, contact the retailer and visit the bank branch in order to be credited for the transaction, all while she is at school...quite frustrating and time consuming.

I have only had a credit card for business purposes, but I just ordered one for our online purchases and other non-pin transactions. What a pain in the arse. Be watchful out there.

[AngryScientist]

i dont use my debit card for anything but taking cash out of the ATM, and generally speaking, i only use the ATM inside my bank to get cash, none of those shady ones in convenience stores or gas station parking lots.

as long as you are disciplined about paying off the monthly balance, there is no down side to using a credit card for ALL purchases. when i get my cup of coffee in the morning, it goes on my AMEX, if i buy a television, it goes on my AMEX. you can rack up the monthly points, or whatever perk your cc has (choose wisely by the way), and the fraud protection offered by cc is much better than with a debit card.

add to that, if your cc account gets effed up and it takes a while to resolve, no big deal, if your bank acct gets screwed up, its a much bigger deal, and you could be out of your real, actual money, not just credit.

[redir]

That sucks. I don't use debit cards for anything except to pull cash out of the ATM. Much more risky. Credit cards are better protected. Why doesn't she just get a credit card?

It's pretty amusing that these criminals are smart enough to run a clever scam but so stupid that they have the stolen goods delivered :lol:

Glad you got it resolved.

[binxnyrwarrsoul]

Common misconception is debit cards have the same protections as credit cards. Emptying of ones checking or savings account is more common than one might think. And straightening it out can be a long nightmare.

[rab]

This just reinforces that I need to do what Angry Scientist recommends...over the years I have become a debit junkie.
Only positive is I try not to keep excess cash in the checking acct.

Have had some issues with incorrect charges on credit cards when travelling and always found the dispute resolution to be very easy.

[rbtmcardle]

6 or 7 years ago my ex and I had the same problem, though we figure that her card info was swiped at a craft show.. the perp made a new card with our bank info and went on a shopping spree in NYC.. apple store, levis, Saks until they burned through about 4 k.. eventually they ran out of money at dinner and the card was rejected.. thankfully, I didnt have auto overdraft of the checking from my savings.. yes, it was shocking.. yes we were without cash until we could get to the savings account... since that point, I only have an ATM card.. not a Visa Checkcard.. only PIN transactions can be completed.. but I think that option is going away too.. with a true CC, if you are a victim of fraud.. you are out nothing until it is resolved.. it took us 3 weeks, but we eventually got all of our cash back..

[54ny77]

i have tried repeatedly to explain to my wife to not use debit cards for this very reason.

similar thing happened to us (her debit card was stolen). the damage wasn't too bad (few hundred or so), but still a royal headache to resolve.

6 or 7 years ago my ex and I had the same problem, though we figure that her card info was swiped at a craft show.. the perp made a new card with our bank info and went on a shopping spree in NYC.. apple store, levis, Saks until they burned through about 4 k.. eventually they ran out of money at dinner and the card was rejected.. thankfully, I didnt have auto overdraft of the checking from my savings.. yes, it was shocking.. yes we were without cash until we could get to the savings account... since that point, I only have an ATM card.. not a Visa Checkcard.. only PIN transactions can be completed.. but I think that option is going away too.. with a true CC, if you are a victim of fraud.. you are out nothing until it is resolved.. it took us 3 weeks, but we eventually got all of our cash back..

[tuxbailey]

i dont use my debit card for anything but taking cash out of the ATM, and generally speaking, i only use the ATM inside my bank to get cash, none of those shady ones in convenience stores or gas station parking lots.

as long as you are disciplined about paying off the monthly balance, there is no down side to using a credit card for ALL purchases. when i get my cup of coffee in the morning, it goes on my AMEX, if i buy a television, it goes on my AMEX. you can rack up the monthly points, or whatever perk your cc has (choose wisely by the way), and the fraud protection offered by cc is much better than with a debit card.

add to that, if your cc account gets effed up and it takes a while to resolve, no big deal, if your bank acct gets screwed up, its a much bigger deal, and you could be out of your real, actual money, not just credit.

+100

I never used my ATM card other than using it at the ATM. Every time I see someone use a debit card, or checks at the check out line I always wonder why. Perhaps it is a self imposed spending guard knowing that money comes immediately out of the bank account, thus curbing impulse purchases.

For me, CC only offers advantages because I don't carry balance. I have gotten numerous airline tickets, free hotel nights, cash back, etc, etc.

Edit:

With respect to fraud protection, on my recent trip after going to a restaurant in Lake George, I found out that someone used my card to buy $1,500+ of stuff from Home Depot online while I was driving home the next day. I called the CC company and the charge was immediately reversed and I got new cards a few days later.

Side note: I really like how they do CC transaction in Canada, where they bring the CC terminal to you for you to swipe the card, even in the restaurants. Much superior than someone taking your card to the back of the counter and do what they want with it.

[deechee]

Side note: I really like how they do CC transaction in Canada, where they bring the CC terminal to you for you to swipe the card, even in the restaurants. Much superior than someone taking your card to the back of the counter and do what they want with it.

How do you know the terminal's wireless signal is secure?

That said, I'm getting tired of every little thing requiring PIN entry, even the gas station has it now.

[crownjewelwl]

using an ATM only card instead of a debit card...

the banks try to stick you with a debit card (mastercard or visa insignia), but most will give you an old skool ATM card if you ask

[67-59]

Another +1 with Angry.

I've been CC only for transactions for many years -- and the couple of times we had issues, they were sorted out in a single phone call. My debit card is used only at ATMs.