Is it safe to use my debit card online?

IdentityTheft — Tue, 10 May 2011 15:10:00 GMT

It's important to remember that while credit and debit cards may look identical, not all plastic is the same. It is important for consumers to know and understand the difference between a debit card and a credit card. There is a difference in how the transactions are processed and the protections offered to consumers when they use them.

While debit and credit cards each have advantages, each is better suited for certain situations. It's also important to note that since your debit card is a direct link to your bank account, there are times it's best to avoid handing over that information.

There are some situations when it would be best to just leave your debit card in your wallet. First of all, you don't want to use your debit card online. If you have problems with a purchase or the card number is stolen, it's a particular vulnerability because the card is tied to a bank account. The Federal Reserve's Regulation E covers debit card transfers, and sets consumer liability for fraudulent purchases at $50, provided they notify the bank within two days of discovering that their card or card number has been stolen. Some banks have set the liability at zero.

Don't use your debit card in a restaurant. It's one of the few places you have to let your card leave your sight when you use it.

It's also tricky to use your debit card at gas stations and hotels, because sometimes these merchants will place holds to cover customers who leave without paying the entire bill. This means that even though you only bought $10 in gas, you could have temporary bank hold for $50 to $100 on your account. The same goes for hotels. Ask about deposits and holds up fringe.

Be smart when you use your debit card, and never be afraid to ask questions. And to be even smarter, pay in cash if you're in an uncertain situation.

Now That's A Fish Story!

IdentityTheft — Wed, 14 Apr 2010 09:01:00 GMT

Sushi workers in identity theft scam net thousands

Two New York City Sushi restaurant workers were arrested last week. The two were charged with identity theft, grand larceny and criminal possession of forgery devices after Citibank discovered that 38 of its credit card accounts had been compromised following purchases at Kaiten Sushi East Restaurant on Third Avenue near East 26th Street, where the suspects had worked for about a year.

Between October 16th and January 8th, more than $60,000 was illegally charged to credit card accounts that had been used at the restaurant.

"Skimming" is a method by which thieves steal your credit card information, and all it requires is a little technology and a lot of criminal intent by those who handle your credit card. Skimming occurs most frequently at retail outlets that process credit card payments -- particularly bars, restaurants and gas stations.

Here's how it works: A corrupt employee "skims" a customer's credit card with a small, handheld electronic device that scans and stores the card data from the magnetic strip. The employee usually sells the information through a contact or on the Internet, at which point counterfeit cards are made. The criminals go on a shopping spree with a copy of the credit or debit card, and cardholders are unaware of the fraud until a statement arrives with purchases they did not make.

When using your credit card, always make sure your card stays in sight, and never let anyone leave of your presence with the card if you can help it. If you are in a retail store or restaurant and the cashier say he has to go to another counter to run the card, follow him. Each month, monitor your credit card receipts and check them carefully against your statements. Watch for small charges - some thieves take out only small amounts in the hope that cardholders won't notice.

Credit card skimming: one of the unpublicized dangers of eating uncooked fish!

ID theft : credit card

Is it safe to use my debit card online?

﻿Now That's A Fish Story!

Now That's A Fish Story!