Debit card fraud continues to grow, and scammers are getting more creative and difficult to detect. In 2024, consumer fraud reached a record $12.5 billion in reported losses, according to the Federal Trade Commission (FTC).

From ATM skimming to phishing scams and large-scale data breaches, fraudsters are constantly evolving their methods to steal banking information.

Even if your card hasn’t been compromised before, staying proactive is key. Understanding how these scams work—and what you can do to prevent them—can help protect your money and your peace of mind.

How Debit Card Fraud Happens

If you’ve ever swiped your card at a gas pump, used an ATM, or made a purchase online, your debit card information could be at risk. Here are some of the most common ways scammers gain access:

Skimmers and Shimmers

Skimmers are devices illegally placed on card readers to capture data from your card’s magnetic stripe. Shimmers are a newer version designed to fit inside the chip reader and steal data from chip-enabled cards. These are often found on ATMs and gas station pumps, especially in areas with little oversight.

Card-Not-Present (CNP) Fraud

This happens when someone uses your card details for an online or phone transaction—without ever needing the physical card. CNP fraud is common after phishing attacks or data breaches.

Data Breaches

Retailers, restaurants, financial institutions, and even service providers are common targets for hackers. When systems are compromised, debit card data is often sold or used in fraudulent purchases—sometimes long after the breach occurs.

Even with the growth of chip technology and mobile payment options, debit cards remain vulnerable. But the good news is, there are practical ways to reduce your risk.

Tip #1: Be Smart About ATM Use

Scammers often target non-bank ATMs—like those at gas stations, convenience stores, and standalone machines—because they’re easier to tamper with. Whenever possible, use ATMs located inside banks, grocery stores, or other well-monitored locations.

Before you insert your card, take a moment to inspect the machine:

• Look for loose or misaligned card slots
• Check for thick or unusual-looking keypads
• Be cautious of parts that seem out of place or tampered with

And always cover the keypad when entering your PIN—tiny hidden cameras are sometimes used to capture keystrokes.

Tip #2: Use Contactless and Mobile Payments

Contactless payments like Apple Pay, Google Pay, and Samsung Pay are not only convenient—they’re safer. These platforms encrypt your card information, making it harder for criminals to access your data.

• Contactless payments lower the risk of skimming and shimming
• Mobile wallets are widely accepted and increasingly popular across all age groups
• Many banks also offer virtual card numbers for added protection during online purchases

If contactless payment isn’t available, inserting your chip is still more secure than swiping.

Tip #3: Monitor Your Accounts and Act Quickly

Even if you’re cautious, fraud can still happen—so staying alert is key.

• Set up transaction alerts via your bank’s mobile app to catch unauthorized activity quickly
• Review your account statements regularly for any unusual charges
• If something looks suspicious, contact your bank immediately to lock your card and investigate

Know Your Rights

Federal law limits how much you can lose to debit card fraud—but timing matters:

• Report fraud within two business days: Maximum liability is $50
• Within 60 days: You could be liable for up to $500
• After 60 days: Your bank may not be able to recover your lost funds

If your personal information has been compromised, it’s also smart to notify the three major credit bureaus—Equifax, Experian, and TransUnion—and consider placing a fraud alert or credit freeze on your accounts.

Your Next Step: Stay Vigilant, Stay Protected

You may not be able to stop every fraud attempt, but you can make yourself a much harder target. By being cautious with your card, choosing safer payment methods, and actively monitoring your accounts, you can stay a step ahead.

If something doesn’t feel right—whether it’s an unfamiliar charge, a suspicious ATM, or a missing card—don’t wait. The sooner you act, the better your chance of minimizing any damage.

Have questions about protecting your finances or preparing for the future? The team at Navalign Wealth Partners is here to help.