Saturday, January 16, 2010

Debit-Card 'Skimming' Scams

Three steps to take to protect your account data from getting into the wrong hands

Whether by choice or necessity, American consumers are increasingly relying on debit rather than credit cards. Debit card spending has risen steadily, growing from 47.7 percent of purchases made with plastic in 2003 to 58.9 percent in 2008 and it is expected to surpass 67 percent by 2013, according to the Nilson Report, a newsletter that tracks the consumer payment industry.

When you use a debit card, the money is immediately taken from your checking account. While using debit guarantees that you pay as you go, these cards have downsides, including a growing appeal to thieves. "As economic conditions have worsened, there's been a noticeable increase in all types of card fraud," says Avivah Litan, an analyst specializing in fraud detection and prevention at Gartner Research in Stamford, Conn. "But ATM and debit-card fraud is the top area of concern we're hearing about from banks all over the world."

More from ConsumerReports.org:

Pros and Cons of Debit Cards

Credit Card Perks

Post-Recession Investing

Unlike credit-card thieves, who usually charge merchandise and then resell it to come up with money, people who create counterfeit ATM or debit cards by stealing your PIN and other account data can simply pull cold cash from your bank account. Using a technique known as skimming, they set up equipment that captures magnetic stripe and keypad information when you input your PIN at ATM machines, gas pumps, restaurants, or retailers.

Here's how you can protect yourself:

Don't Type in Your Pin at the Pump

Be especially vigilant at gas stations, Litan says. "Gas pumps are notorious for skimming because they're produced by only a couple of different manufacturers, and if someone gets the key to one from a disgruntled employee, they can insert a skimming device inside the pump where it can't be seen," she says. She recommends using a credit card rather than a debit card when you fill your tank.

If you must use a debit card at the gas pump, choose the screen prompt that identifies it as a credit card so that you do not have to type in your PIN. The purchase amount will still be deducted from your bank account, but it will be processed through a credit-card network, which will give you greater protection from liability if fraud does occur. This is because card issuers typically have "zero liability" policies for both debit and credit cards, but sometimes exclude PIN-based transactions from that protection.

Stick With ATMs Located at Banks

To reduce your risk at ATMs, use machines at banks rather than in convenience stores, airports, or any isolated locations, advises Darrin Blackford, a spokesman for the U.S. Secret Service, which investigates financial crimes involving interstate commerce. "A thief has to be able to attach and retrieve a skimming device to use the data it's gathered," he says. "And that's more likely to happen in nonbank settings where there's less traffic and no surveillance cameras."

That doesn't mean that bank ATMs are immune, however. In August 2008, Wachovia Bank reported that several debit-card "identities" were stolen when a skimming device was placed on an ATM at a branch in Cape Coral, Fla.

"It's often hard to spot skimmers," Blackford says. "But if you notice a change at an ATM you use routinely, such as a color difference in the card reader or a gap where something appears to be glued onto the slot where you insert your card, that's a warning sign you'd want to report to the bank that owns the machine."

Closely Monitor Your Bank Accounts

Check them regularly—preferably online rather than waiting for monthly statements to arrive in the mail. Federal law limits your liability for fraudulent debit-card charges to $50, but only if you report the theft or loss of your card or PIN within two business days of discovering the problem. If you fail to report unauthorized charges within 60 days of the date the statement listing those charges was mailed, you could be liable for any unauthorized withdrawals afterward, including the full value of credit lines or savings accounts linked to your account for overdraft protection.

Visa and MasterCard have zero liability policies that go beyond federal law by exempting debit cardholders from liability in most circumstances when a bank investigation confirms that a transaction is fraudulent. But dealing with debit-card fraud can have a greater impact on your finances than credit-card fraud.

When you're a victim of unauthorized charges on a credit card, you won't be out any money while the disputed charges are being investigated. But when a thief steals money from your bank account using a counterfeit debit or ATM card, that cash won't be restored to your account until the bank conducts its investigation and classifies it as a case of fraud. Some victims of debit-card skimming scams who have contacted the Privacy Rights Clearinghouse, a nonprofit consumer advocacy group, about their experiences report that while banks in most cases replenished the stolen funds, some of them had no access to the money for several weeks while bank investigations were conducted.

Consumer Reports has no relationship with any advertisers on Yahoo!

Saturday, January 2, 2010

WAYS TO FORGET YOUR WORRIES











WISDOM OBUDIGHA

I WANT CONTRIBUTORS

Instructions

Here are Things You'll Need:

Strips of paper

Pen
Step 1

Cut sheets of paper into long strips. Make each strip approximately 1-by-5 inches. Cut a total of 100 strips so that you’ll have an adequate supply for the week.

Step 2

Write one worry on each strip. Be sure to write down all your worries. Doesn’t matter how big or small your worries are; just write them done. Getting worries off your chest onto a paper strip is the first step in breaking the worry cycle.

Step 3

Be specific. For example, instead of writing: “Worried about Johnny’s schoolwork,” be more specific: “Worried that Johnny is behind in math.” Instead of: “Worried about bills,” write: “Worried about overdue phone bill.” The more specific you are, the more relief you’ll feel.

Step 4

Create two piles: one pile for “Yes” and one pile for “No.”

Step 5

Read one worry out loud. Ask yourself, “Is there anything I can do about this worry today?” If the answer is “yes,” place that worry strip in the “Yes" pile. If the answer is “no,” put that worry strip in the “No” pile. Continue until each worry is placed in the appropriate pile.

Step 6

Throw the “No” pile in the trash. Yeah! Since there’s nothing you can do about "No’s" today, there’s no need to hang on to those.

Step 7

Shift your focus to the “Yes” pile. Commit to taking action on each worry in the “Yes” pile.

Step 8

Read over each “Yes” worry strip. Put the worries in order based on which one you will handle first, second and third.

Step 9

Take action. Decide what action you will take and do it immediately. After you have taken the action, move onto the next worry. Keep taking action until you have reached the end of the worry strips.

Step 10

Be worry-free for the rest of the day and celebrate. You took action on your worries and now you are free to enjoy the day.

Step 11

Repeat the above steps every day. Soon your worries will quiet down. You will begin to discover the difference between worries you can do something about and those you can’t.

Step 12

Memorize this mantra: I may have worries, but I no longer worry about my worries. Step 13

Post me a comment to let me know how you’re doing. I care about you.

I LOVE YOU AND WANT YOU TO BE GOOD

I WANT CONTRIBUTORS

WISDOM OBUDIGHA

I WANT CONTRIBUTORS

Instructions

Here are Things You'll Need:

Strips of paper

Pen
Step 1

Cut sheets of paper into long strips. Make each strip approximately 1-by-5 inches. Cut a total of 100 strips so that you’ll have an adequate supply for the week.

Step 2

Write one worry on each strip. Be sure to write down all your worries. Doesn’t matter how big or small your worries are; just write them done. Getting worries off your chest onto a paper strip is the first step in breaking the worry cycle.

Step 3

Be specific. For example, instead of writing: “Worried about Johnny’s schoolwork,” be more specific: “Worried that Johnny is behind in math.” Instead of: “Worried about bills,” write: “Worried about overdue phone bill.” The more specific you are, the more relief you’ll feel.

Step 4

Create two piles: one pile for “Yes” and one pile for “No.”

Step 5

Read one worry out loud. Ask yourself, “Is there anything I can do about this worry today?” If the answer is “yes,” place that worry strip in the “Yes" pile. If the answer is “no,” put that worry strip in the “No” pile. Continue until each worry is placed in the appropriate pile.

Step 6

Throw the “No” pile in the trash. Yeah! Since there’s nothing you can do about "No’s" today, there’s no need to hang on to those.

Step 7

Shift your focus to the “Yes” pile. Commit to taking action on each worry in the “Yes” pile.

Step 8

Read over each “Yes” worry strip. Put the worries in order based on which one you will handle first, second and third.

Step 9

Take action. Decide what action you will take and do it immediately. After you have taken the action, move onto the next worry. Keep taking action until you have reached the end of the worry strips.

Step 10

Be worry-free for the rest of the day and celebrate. You took action on your worries and now you are free to enjoy the day.

Step 11

Repeat the above steps every day. Soon your worries will quiet down. You will begin to discover the difference between worries you can do something about and those you can’t.

Step 12

Memorize this mantra: I may have worries, but I no longer worry about my worries. Step 13

Post me a comment to let me know how you’re doing. I care about you.

I LOVE YOU AND WANT YOU TO BE GOOD

Worried about money?

Worried about money? Lose those worries by adding a second paycheck with Strong Future International. Get started FREE. Start seeing money within a few weeks. Learn more at: http://www.sfi4.com/11204134/FREE