Swiping your debit cards at gas stations, ATMs, and other places used to be a simple task. However, a concerning trend has emerged. Debit card fraud skyrocketed by 368% between 2021 and 2022. This significant increase highlights the need for smarter habits when using your debit card.
We have researched various online forums to curate a list of things you should avoid while using your debit card.
Don’t Leave Your ATM Transactions Unprotected
Never conduct your ATM transactions without ensuring complete privacy. Avoid using ATMs in poorly lit or isolated areas where you could be more susceptible to theft or skimming devices. Beware of fake card readers. Criminals can install hidden skimmers on ATMs that steal your debit card information. Always shield the keypad with your hand while entering your pin. Always stay alert and don’t let anyone distract you while using the machine.
Don’t Forget to Register Your Current Mobile Number with Your Bank
Neglecting to keep your current mobile number registered with your bank means missing out on crucial alerts for your transactions. Without real-time notifications, you might not catch unauthorized use of your debit card quickly, putting your finances at greater risk. Ensure your number is updated to receive alerts for every transaction. This simple step is vital for safeguarding your hard-earned money.
Avoid Making Transactions on Public Wi-Fi
Using public Wi-Fi for transactions is a significant security risk. These open networks often lack security, making it easy for hackers to intercept your data. Avoid online banking, entering passwords, or making purchases on public Wi-Fi. Stick to secure, private networks when accessing your bank or making online purchases.
Don’t Neglect to Regularly Examine Your Bank Statements
Failure to regularly review your bank statements can lead to unauthorized charges or errors. Make it a habit to scrutinize your statements to catch any suspicious activity early and report it to your bank immediately. This proactive approach can help you spot problems before they escalate. Keep your financial records organized and secure.
Don’t Engage with Unverified Customer Service Representatives
Be wary of unsolicited contacts from supposed customer service representatives. Never give out your personal or account information unless you have verified their authenticity by contacting your bank directly using a trusted phone number. Scammers often pose as bank officials to steal your information. Always double-check before sharing any details.
Don’t Use Your Debit Card Carelessly at Gas Stations
Gas stations can be hotspots for skimming devices. Don’t use your debit card without inspecting the pump for tampering. A study shows that 32% of Americans use debit cards at gas stations. Sometimes, data breaches put millions of debit cards at risk of being exposed. It is quite likely that a significant number of debit cards will be exposed if there is a data breach at gas stations, drive-through coffee shops, and restaurants.
Don’t Rely Solely on Your Debit Card When Traveling Internationally
Traveling abroad with only a debit card can be risky. Limited access to networks and difficulties in recovering stolen funds can ruin your trip. Use a mix of credit cards and local cash to ensure you’re prepared for any situation. This approach provides better protection and convenience while you travel. Credit cards offer wider acceptance and stronger fraud protection, while local cash provides immediate spending flexibility, especially in situations where cards aren’t accepted.
Don’t Use Your Debit Card for Hotel Reservations
Hotels often require deposits and hidden deposits and may charge for incidentals, which can quickly deplete your debit card balance and lead to overdraft fees. Use a credit card instead to avoid these issues and have a buffer against unexpected charges. Credit cards typically don’t incur overdraft fees. This practice keeps your finances secure during your stay.
Avoid Using Debit Cards for Recurring Charges
Using your debit card for subscriptions can lead to unexpected charges that drain your account. Opt for manual payments to keep better control over your finances and avoid surprises. This method allows you to regularly review your statements and identify any unauthorized charges. Managing subscriptions manually can prevent financial mishaps and ensure you only pay for the services you truly need.
Don’t Use Your Debit Card for Medical Bills
Medical bills can be unpredictable, and using your debit card may result in overdraft fees if charges exceed your balance. Credit cards offer a higher limit and better purchase protection, making them a safer choice for medical expenses. Paying your credit card balance in full each month avoids interest. Navigate medical costs without financial stress by using credit cards wisely.
Avoid Using Debit Cards at Vending Machines
Vending machines can malfunction, leading to accidental charges. Using a debit card means immediate debits and a potentially lengthy dispute process. Carry cash or use a credit card for these small purchases to avoid hassle. This simple precaution can save you time and money in the long run.
Don’t Use Your Debit Card for Car Rentals
Car rentals often involve deposits and potential damage charges that can tie up your funds and expose you to overdraft fees. Use a credit card instead for higher limits and built-in rental car insurance. This practice offers greater financial protection and peace of mind. Avoid the complications of using a debit card for rentals.
Don’t Use Debit Cards for Booking Flights
Booking flights with a debit card offers less purchase protection and makes it harder to dispute charges. Debit cards won’t reward you for travel expenses. Credit cards, however, offer significant benefits. Some credit cards even offer travel insurance that bears the cost of your trip cancellations, lost baggage, or even emergency evacuations.
Don’t Download any Un-authenticated Apps
Don’t download unverified apps, especially if a stranger claiming to be from a service provider recommends them. Never grant remote access to your phone, particularly if it involves the mobile number linked to your bank account. These actions could compromise your safety and expose your financial information to fraudsters.