Debit card has become popular with those who want to spend within their means. This mode of payment won’t let you overspend as most cards have a stored value which sets the limit on how much you can spend. Some cards are directly linked with the bank account of the holder that when the card is used to purchase, funds are withdrawn from the bank account to pay for the products or services obtained. Thus, a debit card is considered a suitable payment instead of bringing cash, or when making online purchases when there is no credit card.
A recent article on USA Today on debit card advises holders to be careful when using their debit card. Jeff Hall directs the information-security practice at tax and risk consultancy McGladrey. In his interview, Mr. Hall confirmed that ATM fraud using counterfeit debit cards and stolen personal identification numbers is occurring more often than the general public realizes, and that cardholders should be careful and should know what to do.
He explained that data thieves target debit cards at point of sale where payment terminals and point-of-sales registers have been tampered with to obtain credit card and other data. The concern extends to data networks, medical devices, automobiles, TV sets — essentially any electronic device. As debit cards are tied directly to the bank account, there is a risk of tapping into a large amount of cash. Mag stripe data is easy to get; having access to a complete mag stripe data with a PIN can run the risk of duplicating the real card.
Thus, Mr. Hall advises organizations to obtain terminals from a reliable supplier to ensure that no tampering can take place. Also, there is a need to lock down terminals as terminals that are not locked down are easy to swap with a tampered unit. There is also a need to monitor the devices and the organization’s network. If a credit card terminal or POS gets unplugged from a network, the network should generate an alert.
Consumers are advised to use their debit cards sparingly, and only if there is no cash on hand when a purchase has to be made. Be careful of using debit card especially if it is tied to your bank account.
