ebit cards are promoted to consumers as the latest trend in banking convenience. With a debit card, it's like writing a check. The money is debited from your checking, savings, or other bank account. There's no interest to pay, no monthly payment to budget for. You only need one card to complete all of your purchasing transactions.
		ebit cards are also being targeted by thieves as one of the easiest, most lucrative ways to steal money. If a thief abuses your debit cards, your bank accounts could be cleaned out before you notice the card is missing. If you wait too long to notify the bank, you may not get your money back. Liability for debit card holders is different than for credit card holders. Debit card holders are liable for $50 if they report the card lost or stolen within two business days of noticing that it is missing. After that, debit card holders' liability increases to $500, and liability becomes unlimited if they don't report the card lost or stolen within 60 days of receiving a statement. Credit card holders are liable for a maximum of $50-no matter when they report their card lost or stolen.
		n 1995 debit card losses due to fraud accounted for more than $800 million. As the number of debit cards issued increases, so do consumers' chances of fraudulent loss. One factor that may contribute to fraud according to industry analysts is the practice many banks have adopted of sending unsolicited debit cards to their customers. Many thieves intercept debit cards that have been mailed by banks to customers who are unaware that their card is in the mail. One method thieves use to fraudulently gain access to debit cards occurs when the thief poses as a bank representative and calls the unassuming customer to ask if they received the card. After the customer confirms they have not received it, the thief will ask them to call a special 800 number to report it missing. When the customer calls the 800 number it actually connects them back to the thief, who asks them for identifying information such as their Social Security number. The thief uses this information to contact the issuing bank and activate the debit card. Larger banking institutions are taking precautions to prevent debit card fraud, and many have established safety procedures to reduce risk and prevent fraudulent debit card activity. However, industry experts maintain that some smaller institutions that issue debit cards are unfamiliar with credit and/or debit card fraud or unaware of sophisticated technical solutions that can prevent fraud. As a result, these institutions may pose risks to their customers who use debit cards. Compounding the problem is thieves' increasing sophistication and knowledge about electronic banking. Consumers' best defense is to become knowledgeable about debit cards and understand the benefits as well as the risks they may face in using them.
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