- The Electronic Funds Transfer Act (Regulation E, Federal Reserve Board) regulates ATM debit cards. If your bank states its policy is to limit your fraud liability to $50, ask them to show you their written policy. While the law says you are liable for no more than $50, Regulation E is divided into three tiers. These include: $50 if you notify your bank within two days of the theft of loss of your debit card; up to $500 if you let your bank know after the two-day deadline; "potentially unlimited" liability for every unauthorized transaction on your debit card taking place after 60 days from the date you receive your bank statement that contains the unauthorized transactions "if you fail to notify your bank within 60 days of receiving your bank statement," according to the Public Interest Research Group.
- If you lose your debit card to theft, the bank cannot make you responsible for more than $50 as long as you notify them within two days of realizing your card has been stolen. Because your debit card electronically accesses your bank account, either checking or savings, the thief has taken your money. If you have an off-line card ---- you aren't required to enter your PIN when you use it ---- it's easier for thieves to get to your money, states PIRG. Your credit cards are regulated by the federal Truth in Lending Act. When you realize your card has been stolen and you give notification to the card issuer in writing, by phone or in person, your total loss is limited to $50.
- ATM debit cards require that you enter a PIN at the point of sale to make a purchase. With newer debit cards, it isn't necessary for you to enter your PIN to access your money. These are known as "check cards" and they are usually branded with the MasterCard or Visa logos. You're only required to provide a signature on the point-of-sale keypad when you swipe your card to make your purchase. For this reason, the check cards are less secure than PIN-only cards, making it easier for thieves to drain your checking, savings and line of credit accounts, reports PIRG.
- Protect yourself with a few safety precautions. Do not give your bank information over the Internet or phone unless you started the transaction. Be aware of "phishing" or "spoof" emails claiming to be from your bank, asking you to verify your account information by providing your account information. Do not write your PIN on your card or keep it in your wallet -- memorize the number. Don't share your PIN, security code or any other account information with anyone, whether friends or relatives.
Check your bank statements immediately. If you have Internet access to your bank account, check it at least once a week. Report any unusual transaction or missing payments to your bank. Take precautions and shield the keypad when you are entering your PIN. Use a do-it-yourself scanner at stores to prevent employees from getting your account information. If you shop online, install and update spyware and virus protection. Make sure your computer's firewall is running, advises the Washington State Department of Financial Institutions.
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