How to Save Yourself from Debit Card Fraud?

Posted on: Jul 4, 2024 | 3 mins | Written by: HDFC ERGO Team

How to Save Yourself from Debit Card Fraud?

As we move towards a cashless economy, the use of credit and debit cards has become more prominent. As the number of debit card transactions has increased, the number of frauds has also increased. In such a time, it’s even more necessary to know about the types of debit card fraud and how to protect yourself from them.

WHAT IS DEBIT CARD FRAUD?

Debit card fraud can be any authorized transaction paid by a Debit card without your permission. Many times, fraudsters will get hold of your Debit card information, such as the card number, CVV code, expiration date, and PIN, and use it to debit money from your account without your knowledge.

Fraudsters can get your card information in many ways, such as hacking through an immoral employee or hacking any retailer's unprotected system where your data may have been stored. Debit card fraud occurs when a debit card is used to make a payment or purchase without the consent of the debit card holder.

TYPES OF DEBIT CARDS FRAUDS

1. Lost or stolen card

If you accidentally lose or steal your debit card, fraudsters can use it to make authorized transactions that will then be visible on your card statement. Most of the time, the bank blocks such transactions, but if they're being used in real-time, then it may put you on the hook.

2. Counterfeit Card

The fraudsters with all the details of your credit card duplicate the card and then use it to make withdrawals or transfers.

Although each card comes with its own intricate number that gets caught in a merchant system.

3. Remote Scams

Remorse scams, data breaches, and data phishing have become even more popular. Fraudsters can even use malware to steal card information or buy it through data breaches to use it for fraudulent transactions.

4. Without a card

As the number suggests, fraudsters can even use your card without having the complete information. They will need just your card number to make online purchases.

5. SMS Frauds

This is one of the most commonly occurring methods these days. Scammers may send you an SMS or email asking you to click on an unknown link or a message saying your card has been blocked and you need to enter your details to unblock it. In any case, it is important to never enter your details like that.

HOW TO DETECT DEBIT CARD FRAUD

Many banks these days have fraud monitoring systems to study patterns and catch debit card fraud.

Some common characteristics include:

• Many transactions in a short duration of time.

• Transactions exceeding the typical spending limits of the owner.

• Transactions that do not go well with the usual spending habits of the owner.

• Transactions happening from a high-risk location.

You can also keep track of transactions and report to the bank in case of any suspicious activities. It is also advisable to keep track of your bank statements and not share your online banking passwords with anyone.

If you see any suspicious changes in your account or payment done from an unknown place, make sure to contact your bank as soon as possible. The sooner you report the fraud, the better chances you will have to stop it and get your money back.

HOW TO PROTECT AGAINST DEBIT CARD FRAUD?

While it is not possible to protect yourself against hackers, you can still take a few necessary precautions to prevent yourself from falling into a trap. A few ways by which you can protect yourself and your family from debit card fraud-

1. Use a secured network

It is important to use a secured network while conducting online transactions. If you are entering your card details, make sure it is on a secured site, and you are not connected to public Wi-Fi. Always make sure your home Wi-Fi is protected. Getting cyber insurance for your family can help you restore or decontaminate your home devices.

2. Protect your mobile and computer

Using an anti-virus or a malware detector can help you avoid any malware that can be used to steal your card information.

3. Do not share PIN

It is very important to memorize your PIN and never share it with anyone. You should also never write down your PIN or banking password or share it through text messages that can be hacked.

Sometimes, you can be hacked, no matter how careful you are. In such cases, having cyber insurance can help you cover costs related to recovering data loss or corrupted data.

Whether you are an individual or a business owner, choosing the right insurance can be beneficial. Many Cyber insurance for working professionals cover various network security liabilities and privacy and data breach liability.

4. Beware of phishing scams

Before using any online site or payment gateway, make sure it is secure and reliable. Sometimes, scammers set up fake sites to steal your banking data, which can be later used to transfer money out of your accounts.

5. Don’t keep all your money in one place

It is an age-old saying never to store all your eggs in one basket, and in a modern world, that is equivalent to having all your money in one account. It is never a bad idea to have some money stored up elsewhere that can be used in case of emergencies.

Additional steps-

1. Use strong and unique passwords and enable biometrics authentication.

2. Sign up for transaction alerts from your bank.

CONCLUSION

We are living in a time when you can choose to stop using your card altogether. But you can take as many steps as possible to make it harder for scammers to breach your data.

FAQ

1. What should you do if your debit card is used without your permission?

If your debit card is used fraudulently, contact your bank and block it. Your bank will investigate and help you get your money back.

2. Can my debit card be used without my PIN?

Fraudsters can sometimes use your debit card without the complete card information. Such as they might need only the card number to make online purchases.

3. Can banks track debit card transactions?

Yes, banks can track the transaction and investigate it in case of any fraud or suspicious activities.

Disclaimer The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

Types Of Frauds In Digital Payment Industry

Digital Banking Frauds and Tips to be Wary of Them

What to do if You’ve been Scammed Online?

How to Avoid OTP Fraud?

All You Need to Know About QR Code Scam