By LaToya Irby
Edited by Michelle TipswordHow to Avoid Debit Card Fraud
Quick Answer
You can avoid debit card fraud by protecting your PIN and card information, using your card safely, monitoring your account frequently, using your bank’s security features and responding to notices and suspicious activity quickly.
Debit card fraud can result in a loss of access to the money in your bank account. According to the Federal Trade Commission, consumers reported more than 76,000 cases of debit card fraud in 2024, totaling $180 million in losses. The good news is there are steps you can take to avoid debit card fraud and protect your money. Here's what you need to know.
What Is Debit Card Fraud?
Debit card fraud happens when someone uses your debit card or card information without your permission. Because a debit card is tied directly to your checking account, unauthorized transactions can drain your available balance or even overdraw your account—making debit card fraud a form of bank fraud.
Types of Debit Card Fraud
Fraudsters can misuse your card or the details in several ways, including:
- Unauthorized purchases: Using your card for online or in-person purchases
- ATM withdrawals: Stealing cash from your account from an ATM
- Counterfeit cards: Creating fake debit cards using your stolen data
- Account takeover: Accessing your online banking account to make transfers or purchases
How Debit Card Information Is Stolen
Criminals often have clever ways of stealing or capturing debit cards or their payment information:
- Physical theft: Stealing your card or intercepting it in the mail
- Skimming: Using hidden devices on ATM or payment terminals to capture your data
- Data breaches and the dark web: Hacking businesses and selling the stolen information
- Phishing and social engineering: Tricking you into giving up your information by phone, email, text, social media or ad clicks
- Hacking and malware: Targeting your smartphone, public Wi-Fi or computers to steal login information
- ATM theft: Stealing an ATM and the information stored in it
Once criminals have your information, they can use it to make purchases, withdraw money from your account or sell the data to other fraudsters.
Debit Card Fraud vs. Credit Card Fraud
Both debit and credit card fraud can result in unauthorized transactions, but there are key differences in where the money comes from, how liability works and how long you have to report the fraud.
| Debit Card Fraud | Credit Card Fraud | |
|---|---|---|
| Source of funds | Your checking account (and linked accounts) | Your credit line |
| Potential liability | $50 to $500 if reported within 60 days and potentially everything stolen after 60 days | $50 maximum, often $0 with zero liability policies |
| Time to report | 2 to 60 days | No strict deadline |
Credit cards are generally safer than debit cards. Many credit card issuers offer zero liability protection, meaning you're not responsible for unauthorized charges. Debit cards are protected under the Electronic Fund Transfer Act (EFTA), but liability depends on how quickly you report the fraud.
Because debit cards are linked to your bank account, fraud puts your cash at risk. Even pending transactions can tie up your available balance while the bank investigates, potentially causing overdrafts. With credit cards, you typically don't have to pay disputed credit card transactions while they're under investigation.
Learn more: Debit Card vs. Credit Card: How Are They Different?
Manage Your Finances
Compare checking accounts
Find a digital checking account with intro bonuses, low or no monthly fees and see current APY on checking.
Featured Account
FDIC Insured
ADDITIONAL FEATURES
- Build credit by paying bills like utilities, streaming services and rentø
- $50 bonus with direct deposit‡
- No monthly fees, no minimums‡
- Secure & FDIC insured up to $250,000§
- Zero liability for fraudulent purchases¶
- 55,000+ no-fee ATMs worldwide**
- Deposit cash at popular retailers#
- Live customer support 7 days a week
Are Debit Cards Protected From Fraud?
Debit cards have a limited amount of fraud protection under the EFTA, depending on when you report the fraud. Here's how much you may be liable to pay, based on when you report fraud to your bank:
- Before any fraudulent charges are made: $0
- Within two days: Up to $50
- From two to 60 days: Up to $500
- After 60 days: You could be responsible for all losses
You may qualify for an exception to the 60-day deadline. For example, if you were traveling or hospitalized and couldn't notify the bank, you may still be protected.
Banks generally have 10 business days to investigate and resolve your claim. If more time is needed, your bank may give you a temporary credit. However, the credit can be reversed if the investigation shows that no fraud occurred.
How to Avoid Debit Card Fraud
While you can't eliminate fraud risk entirely, there are several ways to avoid it. Criminals are constantly coming up with new schemes so it's important to be vigilant about protecting your account.
Protect Your PIN
Your personal identification number (PIN) can be used to make debit card purchases or withdraw money from your bank account. Don't write your PIN on your debit card, share it or store it near your debit card. If your PIN is compromised, report it to your bank right away.
Check Your Account Regularly
Unrecognized transactions are often the first sign of debit card fraud. Log in to your account frequently to spot suspicious activity early. Watch for small test charges, transactions from businesses you don't recognize and ATM withdrawals from locations you haven't visited.
Use Your Bank's Security Features
Most banks offer digital tools that give you better protection. Enabling these settings can help you catch fraud in real time. Common features include:
- Transaction alerts for large purchases, transfers, withdrawals or low balances
- Login notifications that warn you when someone signs in from a new device
- Account alerts for changes to your contact information or password or failed login attempts
- Card controls that let you lock or pause your debit card if it's misplaced
Tip: If you rarely use your debit card, lock it to prevent new transactions (recurring payments will still be processed). Then when you need to use it, you can simply unlock it from your bank's mobile app.
Learn more: How to Set Up Bank Account Alerts
Use a Digital Wallet
Mobile wallets encrypt your payment information, making them harder to compromise than a physical card swipe. This allows you to carry your physical card only when it's necessary. If you use a digital wallet, be sure to protect your phone with a PIN, fingerprint or facial recognition. Turn on autolock so your phone locks after a short period of inactivity to avoid someone grabbing your phone and getting your information.
Practice Online Safety
Safe online habits are essential. Only shop on secure sites by checking for "https://" at the beginning of the URL. Use multifactor authentication when available and use strong, unique passwords in your bank and payment apps. Avoid clicking links in unsolicited emails or ads. Be careful on social media, too, as scam losses tied to ads and fake accounts have grown in the past few years.
Learn more: How to Create a Strong Password
Be Cautious at ATMs and Terminals
Criminals commonly target ATMs and gas stations with skimming devices. Inspect card readers for loose or unusual parts before inserting your card. Cover the keypad with your hand when entering your PIN. When possible, use ATMs inside bank branches since they're less likely to be compromised.
Secure Your Bank Statements
Paper statements can expose your account details. To reduce your risk, enroll in paperless statements if they're available. If you keep paper copies, store them securely in a locked cabinet and shred old statements before discarding them.
Respond to Data Breach Notifications
If a company notifies you that your debit card information was compromised in a data breach, monitor your account closely for unauthorized charges. Change your PIN and online banking password immediately. Consider asking your bank to issue a new debit card for extra security.
What to Do if You Are a Victim of Debit Card Fraud
Your liability for debit card fraud depends on when you report the fraud, so it's important to alert your bank as soon as possible. If you suspect fraud, take these steps right away:
- Lock your card. Some banks let you do this online or in the app, to pause transaction processing.
- Contact your bank. Report the details of the fraud and verify your last known transaction. You can also request a replacement card.
- Update your stored payment details. After you receive your new debit card, update recurring bills and other places where your account information was saved. Make sure these accounts have a secure password and multifactor authentication if it's available.
- Check your other accounts. Verify that any other bank accounts and credit cards weren't also compromised.
- Save any records. Keep copies of receipts, emails or screenshots related to the fraud to help your bank with the investigation.
- Place a fraud alert on your credit report. You can alert creditors and lenders who pull your credit to take additional steps to verify your identity before approving new applications.
The Bottom Line
Debit card fraud can lead to huge financial headaches. Understanding how it happens and how to respond can help you protect your money and reduce your risk. Keeping a close eye on your account, using secure passwords and taking steps to protect your debit card and account information can go a long way toward protecting you from debit card fraud.
Earn more with a high-yield savings account
Make your money work harder with a high-yield savings account—earn higher returns with easy access to your funds.
Compare accounts
About the author
LaToya Irby
LaToya Irby is a personal finance writer who works with consumer media outlets to help people navigate their money and credit. She’s been published and quoted extensively in USA Today, U.S. News and World Report, myFICO, Investopedia, The Balance and more.
Read more from LaToya