Debit Card frauds: All You Need To Know

10 January, 2024

The use of Debit Cards has been on the rise. Most of you would already own at least one Debit Card. Unlike Credit Cards which must be applied separately, Debit Cards are usually received by the customers at the time of account opening.

Since the number of Debit Cards in circulation is huge, scammers see these cards as an opportunity to conduct fraud. Over time, fraudsters have devised different types of Debit Card Fraudulent activities to access your Debit Card related information. Once they have access to your data, scammers use it to either create a clone of your Debit Card or make unauthorised transactions digitally.

What are the types of Debit Card Fraud?

To prevent yourself from becoming a victim of a fraudulent tactic, you need to know how scammers operate. By learning their modes of operation, you can raise your guard against various Types Of Debit Card Frauds. The following are some common ways in which Debit Card related scams take place - 

1. Skimming devices - It involves fraudulently capturing your Debit Card details by fraudsters. Scammers use a skimming device capable of copying your data from the Debit Card’s magnetic strip. They install these devices on ATMs or even PoS terminals.
   
   The devices resemble the overall look of the ATM/PoS terminal, making it difficult to spot them at first glance. When you swipe your card from such machines, the skimming device captures all your data. This data is then transferred to the scammer, who can use it to create a clone of your card!
   
   

2. Phishing - Refers to the fraudulent activity of impersonating a reputed organization or an individual. Scammers send out E-mails and SMS, posing as the bank’s representatives.
   
   Such communication typically contains a link to a fake website or form requesting personal details to ‘verify’ their profile. These websites closely resemble the original bank’s website to dupe the victims further.
   
   Scammers can also send out such links by sending too-good-to-be-true offers. When you provide fake websites/ forms with your data, scammers will use the data against you to make unauthorized transactions.
   
   

3. Customer support - Scammers can also call you, claiming a problem with your bank account. They will ask you to provide your details urgently to unblock your account or solve any other issue.
   
   Scammers know people get scared when they hear about a problem with their bank account. They use this fear to access your card information, PIN and OTP. Within minutes of providing such information, your funds can be whipped to zero by scammers.
   
   

4. Data breaches - Hackers often attempt to hack the databases of large organisations. At times, when such hackers successfully get unauthorized access, it results in a large-scale data breach.
   
   Scammers use the leaked data to conduct fraudulent transactions. Depending upon the database, such data can contain all your personal information and passwords!
   
   

Tips to save yourself from Debit Card scams

Debit Card related scams do sound scary. But protecting yourself from them is relatively simple! If you are cautious enough, your chances of becoming a victim of fraud are way lesser. The following are some easy-to-use tips that can help you reduce the risk of Types Of Debit Card Fraud-

1. Verify the identity - If you ever receive a call from someone claiming to be your bank’s representative. Then you should always make the effort of first verifying their profile.
   
   For example - You can ask them to send an E-mail from the bank’s official domain. If possible, call the official customer care of the bank to verify if there is an issue with your account.
   
   Before clicking on any unsolicited links, always read the domain name carefully. Make sure it matches exactly with the official one. Always remember that you should never share your password, PIN or OTP with anyone.
   
   If you are ever asked for such details, do not proceed with that conversation and immediately report the matter to the authorities.
   
   
2. Inspect the machine - While transacting via an ATM or PoS terminal, always attempt to take a closer look at the machine. You should check for any signs of tampering, especially around the card slot and keypad.
   
   If you find any signs of tampering, then the presence of a card-skimming device is likely. Do not transact via such a machine and immediately report it to the authorities.
   
   Try to use only trusted ATMs present at secured locations. Banks have now also started installing anti-skimming devices to save customers from becoming a victim.
   
   
3. Track your statements - It is also advisable to always keep a constant check on your account statement. If you spot any transaction you haven’t made, report it to your bank immediately.
   
   Signing up for transaction alerts can help you further in this. By receiving alerts live, you can spot a fraudulent transaction in real time and reduce the potential for loss.
   
   
   1. Strong passwords - Always use strong and unique passwords for your banking applications. Keep your password private from everyone, and try to avoid writing it anywhere. Using easy-to-guess combinations like birthdate can put you at risk of hacking.
      
      If you have saved your data on any database that has suffered a breach, please change your passwords immediately, as hackers might also have access to your information!
      
      

From this article, you must have learned how Debit Card related scams work and what you can do to save yourself from them. By following the tips mentioned above, you can save yourself from becoming a victim. Remember to stay vigilant and never share your password, PIN or OTP with anyone. If you ever become a victim of fraud, then report the matter immediately to your bank and authorities!


​​​​​​​*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.