Tuesday, May 13, 2014

Another incident that reminds that people should use credit cards instead of debit cards.


According to the article:-

Earlier this month, I began hearing from sources in the banking industry about fraudulent debit card activity on cards that were all recently used at self-service stamp vending machines at U.S. Post Offices in at least 13 states and the District of Columbia.

Banking sources said the fraud follows a fairly consistent pattern: The thieves are targeting debit card users and somehow stealing the PINs associated with the cards. Ostensibly, the fraudsters then fabricate new cards and make cash withdrawals at ATMs ranging from $500 to $800 per card.

One way to protect yourself against this type of fraud is to use a credit card in lieu of a debit card whenever possible. With a credit card, your liability is maxed out at $50 in the case of fraudulent transactions. Things get more complicated with debit cards. Although many banks also will observe the $50 limit on debit card fraud, customers could be facing losses of up to $500 if they wait more than two business days after learning about the fraud to report it. 


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