ATM and Debit Card Fraud

In today’s virtually cashless society, many Americans rely on their debit and ATM cards to get them through any given day. Unfortunately, identity thieves are now relying on stolen debit and ATM numbers to provide them with a significant payday. Just because your plastic card remains in your possession doesn’t mean that your number hasn’t been electronically lifted by a thief who hacked into the system at one of the locations where you have recently swiped your card.
 
Because this type of identity theft is so prevalent, consumers are provided covering under the Electronic Fund Transfer (EFT) Act. Although this act provides protection for consumers, it cannot be used as a license for irresponsibility. If this act is ever to work in your favor, you must regularly check your statements for all of your electronic accounts.

Victims who have had their ATM or debit card numbers stolen must report the fraud immediately if they wish to obtain assistance and protection under the EFT act. The law allows consumers 60 days from the issue of the statement containing the fraudulent activity to report the crime and may require that a formal letter explaining the supposed fraud be sent to the institution within 10 business days.  

Institutions must resolve matters within 45 days (unless the account in question is new, in which case they have 90 days) and all money must be credited back to the victim’s account. If the institution believes that the incident in question wasn’t fraud, they must send the account holder a letter stating why they believe the activity wasn’t fraudulent and that no money will be credited back to the account.

There is good news for all Visa and MasterCard holders, though. Those two credit card companies have agreed to hold most victims of fraudulent activity responsible for no more than $50 total. However, there are exceptions to every rule so don’t rely totally on a system like that to protect you. Be proactive instead.

To insure that you receive maximum protection under the EFT act, it is recommended that if you discover fraudulent activity on your account statement, you contact your financial institution by phone immediately and that you follow that correspondence with a certified letter. Request a return receipt to ensure that your bank receives your letter. Keep documentation of all correspondence between you and the bank for your personal records should you ever need it.

In most cases, a preliminary credit of the funds will be deposited into your account while things are being investigated. But, keep in mind that the money is not truly yours until the issue is formally resolved and your case is officially closed. Those who regularly check their bank statements have a greater chance of catching identity thieves before stolen amounts reach hundreds or thousands of dollars. So monitor your statements carefully and regularly to make sure you don’t lose the money you worked so hard to earn.