Saturday, August 5, 2017

The Debit Card Scam

The elderly woman simply wanted a free sample of face cream and agreed to pay the shipping cost — $5.99. But the day after she used her debit card to place the order, the online company put through two different and unauthorized charges, one for $92.92 and another for $89.95. Living on a fixed income, She couldn’t afford to be victimized.

The fraudulent fees made her account overdrawn, which resulted in a $39 penalty from her financial institution.

From 2015 to 2016, the number of debit cards compromised at ATMs and merchants jumped 70 percent in the US.
A customer service representative at one bank recommended opening a second checking account just for a debit card. This limits what the crook can get away. Make sure the main account isn’t linked to the debit card.

When it comes to your debit card, the longer you wait to report a theft severely affects how much you can recover. If you fail to report a fraudulent charge more than 60 calendar days after you receive your statement, you cede all protection. All your stolen money could be long gone.
The latest fraud scheme is Card Cracking. The set up is simple. Consumers are asked to hand over their checking account information, and sometimes even debit cards and PIN numbers, in exchange for a kickback. The scammers deposit counterfeit checks into the account, and then use the checking account information or debit card to withdraw the funds before the bank can tell that the check is fraudulent. The scammers may even ask the consumers to report the debit card as stolen. In Chicago, 29 defendants were hit with bank fraud and conspiracy charges for their role in card cracking schemes that defrauded banks of $1.7 million. Defendants face up to 30 years in prison and $1 million in fines each.