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PSA: Be very careful using your debit card...........


Joanne
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Over the weekend, while I was at work with my debit card in my wallet, in my purse, a person used "my" debit card and took 4 transactions of $500 and later a $100 and $200 withdrawal.

 

It seems that I used a card reader somewhere that had a skimmer with a camera that captured my PIN.

 

The bank stopped the card as soon as I called, and has given me temporary credit for the funds while the investigation is going on.

 

I have since done some research:

 

http://krebsonsecurity.com/all-about-skimmers/

 

 

http://www.consumerreports.org/cro/2013/08/credit-card-skimming-at-gas-pumps/index.htm

 

 

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Yep. Back in WA I got hit that way. Luckily I wasn't the only person hit so I discovered it was on the gas pump I had used at a particular Arco station.

 

Thinking back, I think I even remember the time. The first time using it, it didn't "register" my password and I had to retype. I was a little annoyed because that so rarely happened but didn't notice the extra bump

 

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I wonder if someone here knows if this is true: A friend told me that if you stick in another card after your transaction is complete, the card reader will only record the last transaction / card number. So she thinks if she slides in her AAA card or library card with a magnetic strip, whoever is trying to get her card number will only be able to see the last number and it won't be a credit or debit card. True or False?

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I wonder if someone here knows if this is true: A friend told me that if you stick in another card after your transaction is complete, the card reader will only record the last transaction / card number. So she thinks if she slides in her AAA card or library card with a magnetic strip, whoever is trying to get her card number will only be able to see the last number and it won't be a credit or debit card. True or False?

I don't think so. Skimmers want to collect a lot of data, not one card at a time. It wouldn't be cost effective if they just got one number and pin.

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California had a statewide debit card scam at Arco in 2008

http://www.mercurynews.com/ci_9416625

 

I wonder if someone here knows if this is true: A friend told me that if you stick in another card after your transaction is complete, the card reader will only record the last transaction / card number. So she thinks if she slides in her AAA card or library card with a magnetic strip, whoever is trying to get her card number will only be able to see the last number and it won't be a credit or debit card. True or False?

The skimmer already reads the card number the first time she swipe it, before her transaction even started. The magnetic strip has been around for so long it's not hard to learn how to program a card reader if the syndicate buys the equipment at a black market.

The debit cards with chips are harder to hack but not impossible.

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I quit using our debit card a year or two ago now - no regrets.  At least if I use a credit card the money stolen doesn't come out of my bank account.  And by getting a card with perks, I've gotten quite a bit free due to our normal purchases.  

 

Credit card numbers can still get stolen, of course, but there are times when our bank account is too low to deal with anyone taking out extra via debit and still being able to pay our bills.

 

The warning is definitely a valid one.  I hope you get your funds 100% back quickly!   :grouphug:

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I just received an email from my bank saying that they are issuing me a new debit card because my card may have been compromised, although there is no indication that any fraud has occurred. 

 

Our niece recently had her card compromised, and the culprit was able to complete two $1000 transactions (we're guessing for gift cards) before it was caught. I joked at the time that my card would have been declined long before they got to the first $1000. 

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I quit using our debit card a year or two ago now - no regrets.  At least if I use a credit card the money stolen doesn't come out of my bank account.  And by getting a card with perks, I've gotten quite a bit free due to our normal purchases.  

 

Credit card numbers can still get stolen, of course, but there are times when our bank account is too low to deal with anyone taking out extra via debit and still being able to pay our bills.

 

The warning is definitely a valid one.  I hope you get your funds 100% back quickly!   :grouphug:

I agree.  We haven't had a debit card in years.  After being "double dipped" more than once with various transactions we cancelled it.  If my credit card rings a purchase through more than once or is stolen I still have all my money while we dispute the charges.

 

I follow Dave Ramsey's principles but disagree with him that a debit card is just as safe as a credit card.

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I try to remember, before I use an ATM machine to get cash, to look at the place where I need to insert my card, and also at the cash dispenser, to see if there is anything sticking out (eg. Skimmer).  I prefer to use an ATM machine that is private, where I can lock the door behind me, and is more private, but most of them are not like that.

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I will do you one better:

 

Not only was my debit card # stolen and used once at a restaurant in CT to the tune of $298 and a second time in NY at a Domino's Pizza for $98 (I am in CA) two weeks ago, but someone hacked my Groupon account and charged my AMEX card $275 this week!  So here I sit with no way to pay for anything, until I get replacements.

 

Maybe this should go on the "no-spending" thread.

 

Amber in SJ

 

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Target keeps asking if I want to apply for a debit card. Um, no, not with the company's history though it likely has more protections in place.

 

I have a finance background so here's a few tips for those interested:

 

Use a credit card. A thief can quickly drain your bank account with a stolen debit card number. With a stolen credit card, you can dispute the charges and still retain your cash.

 

If you worry you'll abuse a credit card, go to a cash system. Only use ATMs from reputable places, like banks. Don't withdraw money at convenience stores, gas stations, or standalone ATMs in small stores.

 

Be wary of businesses that request automatic withdrawals. A martial arts studio required students to pay tuition by automatic withdrawal, meaning I gave the clerk (likely not bonded) access to my checking account. Nope. I refused and the business made an exception. This includes utilities. If the power or natural gas bill is wrong, you will have a harder time getting your money back than negotiating for a corrected bill.

 

Before closing a credit card account, report the card lost or stolen. We had a charge show up a year after we closed an account because closing an account doesn't stop automatic charges. Cards that are lost or stolen have all charges stopped.

 

If you continue to have identity theft problems, lock your credit at all three credit rating agencies. This makes applying for some credit a bit more time consuming for you, but it's worth the extra hassle to prevent further abuse.

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I've never bothered with a debit card. When I first got a credit card (age 22?), I treated as I saw my parents treat theirs--pay the whole thing off every month. Years later when debit cards became more prevalent, I thought about getting one. However, I didn't need one and then I started learning about how debit cards can actually have more financial risks with people being able to empty your account and not being able to recover any funds. So, I've always stuck with credit cards.

 

OP, I hope you get everything back. I'm sorry you have this hassle!

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