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Debit Card (Lack Of) Security
- DigitalSea 12y agoI think banks are aware of the shortcomings of debit cards, but the risk far outweighs the need for any more security, why? Debit cards are like credit cards in that they are insured by the bank that issue them. Most debit cards even though they are tied to a real bank account thus resulting in varied availability of funds still have a limit on how much you can spend per day (unless you get the limit lifted). The bank knows that they can take the risk of credit/debit card owners getting their details skimmed and an occasional rogue purchase being made. The amount will be merely written off, a relatively minor loss compared to what your bank will lose in a day from bad investments. Pretty alarming nonetheless, but it is what it is in the financial world. Losses are expected.
- PaulHoule 12y agoI had my debit card # stolen from am e-commerce shop in 1998, my credit union made me whole but the security officer told me there was just one digit that could be changed so I'd better not let it happen too many times. I think these days it would be a little harder because of the cvv code, which you almost always need to have for a card not present transaction. To test out numbers in a card present situation you'd have to make a lot of fake cards and try them out, and I think you'd get caught pretty soon. Payment security practically depends on defense in depth; since financial transactions are fairly traceable you need to DL some kind of money laundering such as sending mules out to buy luxury goods and then selling them on e-bay; as the other commenter puts it, the fees are enough to eat some losses now and then.