Many consumers may be using their debit cards to make purchases more often these days in an effort to avoid credit card debt, and criminals are reacting accordingly.
A growing number of thieves are now targeting debit cards for theft, rather than credit cards, and this shift means a greater risk to consumers, according to a report from the Christian Science Monitor. This is because most debit card accounts don’t have nearly as much fraud protection as credit accounts, leaving victims of theft scams responsible for a larger amount of money.
If debit card fraud is not reported within two business days of its occurrence, current regulations dictate the victim is responsible for up to $500 in the lost funds, the report said. This is compared to just $50 for credit cards, because funds lost in debit fraud is real money that was controlled by a bank.
Debit has become far more popular with consumers since the end of the recession, which forced many Americans to change their spending habits so that they took on less debt.