Riskiest Places to Use a Debit Card

Thieves are always hard at work trying to figure out how to bilk consumers. Therefore, every debit-card transaction consumers make presents some risk. Debit-card users need to be on alert each time they use their cards to avoid having their account numbers stolen. Yet in some cases, cardholders' account numbers may be at risk without their knowledge.

Retailers

The security of your debit card may be at risk when you make a store purchase using your card's personal identification number. That's because your PIN may be stored in temporary software files that can be stolen by hackers. According to an MSNBC article titled "Debit Card Thieves Get Around PIN Obstacle," customers' PINs can be unintentionally stored in temporary files by retail credit and debit systems, even though storing the numbers is against system rules.

ATM Skimmers

Skimming scams raise the risk of using debit cards at automatic-teller machines. Thieves apply skimmers to the section of the machine where ATM users insert their debit cards. The skimmers collect debit card data and wireless cameras are usually used to swipe card PINs. Thieves can use the data to create duplicate debit cards that they sell. You should examine an ATM before using it. A "New York Times" blog post on recognizing ATM skimmers says thieves often attach the devices with glue, so you may see glue marks around the area of the machine where you insert your card if a skimmer has been attached to it. Find another machine if any part of an ATM looks loose of otherwise suspicious.

Signature-Based Cards

Signature-based debit cards can be risky to use at any time because transactions with those cards are authorized with the cardholders' signatures just like credit cards. Therefore, anyone can use these cards simply by forging signatures. The biggest problem with debit-card fraud is that the cards are usually linked to people's checking accounts. A thief who cleans out a cardholder's account may be taking all or most of the money that person depends on to pay bills.

Considerations

Malls, airports and gas stations can be some of the riskiest places to use debit cards. Unlike bank ATMs, machines in those places aren't closely monitored by employees, so it's easier to attach skimmers and other devices thieves use to steal debit-card data. You also might consider using a credit card, not a debit card, at restaurants and other places where your card might be taken out of your sight to complete transactions, especially if you have a signature-based debit card. Fraudulent credit-card transactions can have less of an impact on your finances since they're not tied to a checking account. Credit card users generally can be held liable for only $50 worth of fraudulent transactions made with their cards.