Four risky places to use a debit card

Using a debit card does not provide consumers with the same level of protection as a credit card. Considering that debit cards draw money directly from a checking account, dealing with fraud is much more involved and painful. To help avoid debit card fraud, avoid these four risky places to use a debit card.

Avoid debit card danger at the ATM

Outdoor ATMs are common places for high-tech thieves to set up ATM skimmers, said Los Angeles-based security consultant Chris McGoey to Bankrate. By placing a card-reading machine over the card slot of the ATM, a thief can capture a bank customer’s card information.

“If the public has access to it, then someone has the ability to add skimming devices to it, position cameras on it and position themselves in a way where they could surveil it,” said McGoey.

Boston-based financial analyst Julie McNelley told Bankrate that the best way to avoid ATM skimmers is to use machines inside banks or retail outlets that are well-lit. In general, being aware of anything that looks odd about an ATM is good, too. If the parts appear mismatched in terms of color or wear, proceed with caution.

Gas station panic

Frank Abagnale, a Washington, D.C., secure-document consultant, points to the danger of using a debit card at the pump.

“I’m sitting across the street with a laptop and an antenna. I put a skimmer in there, and I’m picking up all the information. Before you even get home, I’ve debited your account,” said Abagnale.

It’s the same game as the ATM skimmer, McNelley pointed out. The best way to avoid the trouble is to pay cash or use a credit card.

[Learn more about how to use a credit card safely]

Online purchases can be financial murder

Online purchases can give cyber thieves opportunities to steal your identity, particularly when the purchase is made at a public computer, such as at a public library or on a college campus. Online security is assured by the top online retailers, but such is not always the case. Always take care to shop at sites with a good reputation – or avoid shopping online entirely.

Paying your restaurant bill

People everywhere pay their restaurant bills with a credit or debit card. Unfortunately, it’s very easy for a dishonest server to take a card and run it through a card skimmer first.

“Any place where the card is out of hand can increase the chances of fraud,” said McGoey. “The guy comes to your table, takes your card and disappears for a while, so he or she has privacy, giving the person the opportunity to copy your card information.”

If you plan to pay for a meal with a credit card at a sit-down restaurant, there’s no way of knowing what happens to your credit card or debit card unless you follow the server to the scanner. Pay with a credit card for the bank protection, or use cash.

How to avoid ATM skimming

Sources

Bankrate

MSN Money

U.S. Public Interest Research Groups