You probably use your debit card often, but have you thought about the risks that come with it?
In 2023, people reported $10 billion in losses to the Federal Trade Commission, the highest amount ever, and a sign that financial crime is on the rise.
Your debit card is exposed to risk in many everyday situations. Here are the seven most vulnerable places for debit card fraud and how you can protect yourself.
The gas station pump
Using your debit card at the gas pump is common, but it can expose your card information to fraud. Approximately 45,000 U.S. gas stations found that only 48% met EMV automated fuel dispenser compliance by April 2021.
As a result, most pumps still use outdated magnetic stripe technology, making them vulnerable to card-skimming devices.
Online retail websites
Typing your debit card details into online shopping sites can put your payment information at risk. Without a physical card or chip reader, many security protections are missing, making it easier for criminals to use stolen card numbers.
Enter your 16-digit card number, expiration date, and CVV code into a web form; that data travels across the internet. If the retailer’s website has poor security or you are using an unsecured network, hackers can intercept this information in a man-in-the-middle attack.
Restaurants and bars
If your debit card is taken out of your view at a restaurant or bar, it’s at risk for fraud. The 2023 Verizon Data Breach Investigations Report found over 16,000 security incidents and more than 5,000 confirmed data breaches in all industries. If a restaurant’s payment terminal is compromised, it can record every card that’s used.
An employee might use a skimming device to copy your card’s magnetic stripe while it’s out of sight. Malware on the payment system can also steal card data, which criminals then sell or use to make fake cards.
Public ATMs
Using a public ATM, even if it has a bank logo, doesn’t always mean your transaction is safe. Public ATMs remain a significant vulnerability for debit card fraud.
FICO, a data analytics company, in 2022, bank ATM compromises were less than 20% of overall incidents compared to 35% in 2023, a 90% increase year-over-year.
Criminals use sophisticated methods, such as “shimmers,” which are thin devices inserted into the card slot to copy chip data. These devices are often undetectable and may be used with hidden cameras or keypad overlays to capture your PIN.
Independent, non-bank ATMs
You are at a convenience store or a small bar and notice an ATM offering a quick cash withdrawal. These privately owned, non-bank ATMs often seem convenient, but they often lack the rigorous security protocols of financial institutions.
Independent ATMs are more likely to be targeted for skimming because they aren’t regularly checked or maintained like bank-owned machines. This gives criminals more chances to install skimming devices.
Public Wi-Fi networks
Using free public Wi-Fi at places like airports or cafes might be convenient, but these open networks are easy targets for cybercriminals. When you connect to an unprotected public Wi-Fi network, anyone on the same network can monitor your online activity with simple tools.
Someone on the same network can launch a man-in-the-middle attack to steal your data. They might also send you to a fake banking website to get your login details and card information.
Large retailer data breaches
If a big retailer has a data breach, your debit card information could be stolen, even months after you made a purchase.
If a retailer stores your debit card information and there’s a data breach, criminals can steal it. They may sell your data on the dark web, where it’s used to make fake cards or buy things fraudulently.
Key takeaways
Protecting your debit card demands awareness and proactive defense, especially as fraud reaches new heights. Criminals exploit vulnerabilities everywhere. Protecting your debit card requires vigilance and proactive measures, as fraud continues to rise.
Criminals exploit vulnerabilities in both physical and digital environments. Stay alert to keep your hard-earned money securely where it belongs.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information. It is not intended to be professional advice.
Disclosure: This article was developed with the assistance of AI and was subsequently reviewed, revised, and approved by our editorial team.
