The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Sailors Grave on October 21, 2018, 04:29:51 PM
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Someone recently fraudulently obtained my debit card info and spent like $525 at Target. The purchase was tagged as questionable and my account was frozen and I'm disputing the claim. It seems like I'm gonna get the money back but I'm still in fear and upset. I've just started saving and that's the amount I save every two weeks. I'm upset because that number basically represents all the hard work I put in for two weeks, plus all the good decisions I make not buying stuff. And right now that money is still not in my account.
I've never disputed a charge. Has this happened to anyone else? Is it easy to get your money back? Since I didn't make the purchase is it just a formality?
How do I avoid this in the future? Someone said they think my card info got stolen at a gas pumped that was rigged to steal my info... but I don't understand how someone can make a purchase without my actual card and the chip.
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I only use a debit card when I need cash at a bank ATM. Use a credit card instead.
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I’ve only ever had fraud happen on my credit cards, which have zero liability for fraudulent charges. Disputing those has been very easy and I’ve never had a problem getting the credit card company to remove those charges and issue a new credit card number.
However, debit cards are not zero liability for fraud, which means that you should consider yourself extremely lucky if your bank reimburses the charge. Because of this, I never use a debit card anywhere except in the atm at my bank (atms at bank branches are checked daily for compromises like card skimmers). Using it for everyday purchases opens you up to having your money stolen, and using it at non-bank atms opens you up to fraud as well (those are notorious for stealing your card info through skimmers).
You should get a credit card for everyday purchases, but treat it like a debit card and only spend what you have, paying it off in full automatically each month. And you should put your debit card away, only to be used at your bank’s atm.
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I had my wallet stolen a few years ago, and by the time I realized I didn’t have it (the next morning) both my credit card and debit card had been used at Best Buy and Target, and both had been shut down.
I reported them stolen and filed a police report. I filed reports with the bank and the credit card company.
It was upsetting and a nuisance, but I didn’t lose a cent. I think it did take about a week for it all to be sorted out.
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Good education. I've only been using a credit card and cash. I never knew the risk of a debit card.
I was told by my credit card company that there are gadgets out there now that can read your credit card in the wallet in your pants.
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Your card isn't the issue; they don't need your actual card. Your account number is all a thief needs, and with card skimmers easily attached to ATMs, gas pumps and stores, it's super easy to steal that info from the card when it is swiped. They create a duplicate card with your info onto a magnetic stripe/chip and then it's easy to go shopping.
Chip cards are harder to steal info from than magnetic stripe ones, and chip and pin are some of the most secure. So given the choice, go for chip/chip and pin transactions.
And yes, there is now technology out there that can read the cards that have the "fast pass" option where you're literally just waving your wallet or the card over the reader. You can circumvent this by storing the cards in a RFID shield wallet or sleeve for credit cards (or wrapping in tin foil - so those tin foil hat aficionados finally got something right!)
Never use a debit card any place but an actual bank or some place where you can give a HARD shake/pull on the apparatus (but honestly they should not be used except inside a bank owned ATM area - they are too easy to screw around with). Debit cards are a direct line to your bank account and it can take a bank weeks to finally get around to putting your money back into your account while they investigate things.
Credit cards are stand alone - and they have much higher levels of protection, and the credit card companies are much more on the ball about issuing your money back and even if it does take them weeks, that charge(s) run up due to theft are not going to take money out of your pocket.
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Also - the police were able to pull up photos of the people who used my cards. Big Brother *is* watching.
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I've had credit and debit cards jacked so many times now... it's ridiculous. But if you stay on top of it (I try to check Mint every day or two) you'll likely never lose a cent. And it sounds like they flagged this one before it was too late.
I had a debit card fraudulently used that had only ever been used at bank ATMs. It's just part of modern life, unfortunately. I haven't kept track but it's happened to me at least five or six times. Plus I had to deal with it at work with our business credit card twice. But every time they made it really easy to deal with and I never lost a penny.
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Thanks for the replies. It's funny how before when I wasn't saving this never happened. As soon as I start saving... it happens. I think the universe is just testing my resolve haha. I think I will start using my credit card more often and even just pay in cash. Especially at gas stations. I think my info was compromised at a gas station when I look back at the purchases I made
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Thanks for the replies. It's funny how before when I wasn't saving this never happened. As soon as I start saving... it happens. I think the universe is just testing my resolve haha. I think I will start using my credit card more often and even just pay in cash. Especially at gas stations. I think my info was compromised at a gas station when I look back at the purchases I made
It *IS* testing your resolve. :)
I refuse to use debit cards and use credit cards instead for exactly this reason.
If someone defrauds your debit card, you don't have the cash anymore and you have to convince the bank to reimburse you. If they do, they'll do it in their own sweet time without giving a damn about you and your needs for cash.
If someone defrauds your credit card, your bank doesn't have the cash anymore and THEY have to convince YOU to reimburse them. And you can simply choose not to do it.
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I use a debit card for small transactions as a requirement (10 per month) to earn 2.5% interest on checking. Otherwise, I probably would not use a debit card.
To help mitigate the risk, I was able to put a maximum transaction size for debit card purchases ($50). This way, if I do get hacked, the hacker can't run very far without getting "tripped up".
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I've had to cancel at least 4-5 credit cards over the years due to fraudulent charges. Just recently had to do so for my wife's debit card. The scam they were running is they bought some makeup at Walmart - actually had it shipped to us - but then also bought a $100 electronic gift card that went to some random Yahoo email. No idea how they got the number, my wife doesn't use her debit card very often, usually just buying gas at Costco and occasionally if she forgot to bring enough cash. I ended up returning the makeup to Walmart and they refunded the $25 or so for that (actually turned out to be quite a hassle because the boxes were labeled Hazmat for some mascara or something and the local UPS store would not accept them, ridiculous). Our credit union credited us the difference from what was taken - about $300. It took a couple of calls and returning a form they mailed us. It was frustrating seeing the pending charges and then they still processed and took money out of our account.
Bottom line we got all of our money back within about a week but compared to what happened in a similar situation with credit cards it was more of a hassle. Typically we pay cash but I have started using a CC again after a couple year hiatus. $500 cash back for spending $3k in three months was too hard to pass up. Once I'm done with this card there's another one I can do the same thing with.
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Just last Friday someone had a clone of my debit card and tried to withdraw $600 at a branch bank. Apparently they even had some sort of fake ID in my name. This happened >1000 miles away from where I live. Fortunately the bank was suspicious. The transaction shows up on my account as a withdrawal for $600 and an immediate deposit of the same. The bank’s fraud unit called me and emailed me right away to confirm that it was a fraudulent transaction and had me go to a local branch to close the account and open a new one. I am now debating whether to freeze my credit, hesitating because I am thinking of getting a new credit card for miles. I have no idea how this happened, although I just recently returned from a trip abroad where I used my debit card a couple of times at ATMs to get foreign currency.
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My last debit card got compromised three days after it came in the mail. I hadn't even activated it yet. The charges didn't go through so someone didn't get their Chinese buffet dinner in another state.
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Mr. R. occasionally works on those card readers at gas stations, he sees what is out there. Outdated machinery, where it is easy to get your number. We only use cash at gas stations. I rarely use my debit card - one of my banks canceled my debit card for non-use:)
Years ago, I had my debit card compromised at a gas station in Turkey:) of all places while I lived in the US??? - then they somehow used it on an online gambling site and a few other places.
It was very odd because the charges were all minimal - mostly $3-5 max $6, with just two charges in the twenties.
The whole thing must have gone on for over a week for a total of under $100. My credit union caught it before I did and returned the money after about two weeks and questioning me on the use of my card, but even the pending charges were all minimal.
At first, I thought maybe it was a kid testing the criminal waters, but then I figured it was probably a major scam worldwide and those $3 charges add up quickly if you have tens of thousands of cards at your disposal.
The same credit union canceled my debit card twice without telling me - letters arrived the following day. Once, because of a scam involving Publix and once for a scam involving Target - stolen numbers on the store's own database. Nothing happened, thank goodness.
Ticked me off no end because I was out and about and this was the only card I had with me - still better than the alternative, but nevertheless another nuisance in our techie world.
So yeah, I now use a credit card and cash.
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Just last Friday someone had a clone of my debit card and tried to withdraw $600 at a branch bank. Apparently they even had some sort of fake ID in my name. This happened >1000 miles away from where I live. Fortunately the bank was suspicious. The transaction shows up on my account as a withdrawal for $600 and an immediate deposit of the same. The bank’s fraud unit called me and emailed me right away to confirm that it was a fraudulent transaction and had me go to a local branch to close the account and open a new one. I am now debating whether to freeze my credit, hesitating because I am thinking of getting a new credit card for miles. I have no idea how this happened, although I just recently returned from a trip abroad where I used my debit card a couple of times at ATMs to get foreign currency.
Oh wow - now you have me worried.
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How do I avoid this in the future? Someone said they think my card info got stolen at a gas pumped that was rigged to steal my info... but I don't understand how someone can make a purchase without my actual card and the chip.
I used to work in a bank and dealt with this more often than I would have liked. These is no full proof way to protect your debit card if you are swiping it constantly. Every terminal you swipe it in is a possible risk. If you are using it for everyday transactions I highly recommend viewing your transactions on a regular basis to watch for this sort of thing.
My advice:
1. Only use your debit card as an ATM card. Some banks will even let you disable transactions so it is literally an ATM card and nothing more.
2. Use credit cards for your day to day transactions, preferably a credit card with good rewards.
The reasoning has to do with what happens after the card is compromised. If your debit card is compromised the money is still missing from your account while the bank investigates. Sometimes it can take awhile for the bank to investigate, especially for larger amounts. Your debit card is linked to your bank account which is likely the account you use to pay important bills, like your mortgage. You don't want that account frozen or missing significant funds. On the other hand, if a credit card is stolen that card, and only that card, gets frozen while they investigate. This means you can continue to use other credit cards, and your bank account isn't impacted.
Also, as BECABECA pointed out, the liability protection is better on credit cards.
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Don't use a debit card. I don't have one and will never have one.