How does debit skimming work?
In debit card skimming, fraudsters secretly install devices on ATMs or payment terminals to steal card details and PIN information. The skimmers capture data while a hidden camera or keypad overlay records the user’s PIN. In most cases, these devices are difficult for people to see because they look like legitimate card readers.
Holihan suspects that is exactly what happened to him.
"This customer's claim was denied because the charges were authorized with their PIN and verified via phone call," JPMorganChase told CBS News New York.
Unlike credit card skimming, where thieves steal credit card numbers, debit card fraud doesn't fall under the Truth in Lending Act, which offers more consumer protections. While speaking with CBS reporter Elle McLogan, National Consumer Law Center senior attorney Carla Sanchez-Adams shared how that impacts consumers.
"The law that applies to credit cards, the Truth in Lending Act, is more protective than the Electronic Funds Transfer Act,” she told CBS New York. “I always caution and advise consumers who have the ability to have credit cards to use those to make payments because they are much safer than any other type of payment."
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Start saving smarter today!How to protect yourself from debit card skimming
You can protect yourself from skimming by using a credit card over a debit card whenever possible, as they offer more recourse if fraud occurs. However, not everyone has access to a credit card. If you need to use a debit card, you may want to tap rather than insert your card. The FBI notes that tap-to-pay transactions are “more secure and less likely to be compromised.”
Be vigilant at ATMs and payment terminals. If the terminal has clearly been damaged, or if anything is loose or misaligned, it’s best to steer clear. You can also grasp the keypad and pull before entering your PIN to check for a keypad overlay. If it gives or comes off, it may be a skimmer. But if you're at all unsure about the terminal, don't use it.
You may want to stick to ATMs that are inside banks or in well-lit, highly trafficked areas. The location may make it harder for fraudsters to install a skimmer.
Finally, monitor your accounts regularly so you can quickly report unauthorized transactions. If your bank offers real-time alerts for purchases or withdrawals, you can enable that feature. If you suspect your card has been skimmed, report it immediately. Staying alert and taking these precautions can help reduce your risk of falling victim to skimming.
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