Are debit cards safe?

It's a normal drive on a normal day. You notice that your gas tank is close to empty, so you pull in to the first gas station you see, barely noticing the loose feeling of the card reader as you insert your debit card.

Later, you go out to eat and your debit card is declined. When you look at your account activity, you see a big purchase that you didn't make and a depleted checking account.

You've been the victim of skimming, a type of debit card fraud.

According to the FTC, in 2022 consumers filed 68,233 debt card fraud reports and experienced a loss of $196 million. It was the second most common kind of identity theft, behind credit card fraud.

Types of debit card fraud

The first form of defense is understanding the types of debit card fraud.

• Smishing. Fraudsters send text messages to your cell phone, attempting to get your information. They then use that info to make fraudulent transactions.
• Pharming. You're unknowingly redirected from a legitimate website to a bogus website, where you may be prompted to submit information.
• Phishing or social engineering. Similar to smishing, except fraudsters contact you via email or phone and pretend to be an individual or organization you trust in an attempt to get your personal information.
• Skimming. As with the gas station attack already mentioned — fraudsters install a device that can read a card's magnetic stripe and obtain secure information.
• Spear phishing. A targeted form of phishing, where specific audiences or cardholders are contacted via email.

Along with accessing the money in your account, obtaining your information is how fraudsters could also steal your identity and damage your credit by applying for loans and opening credit cards and other accounts in your name.

Remember, USAA will never ask for your personal information such as account numbers and passwords via phone or email.

Debit card security

Debit cards are great for everyday use and can help you stay within your budget by limiting your spending to the amount that's available in your checking account. But there is risk. If compromised, a savvy thief could drain your account before you know it.

USAA helps protect against unauthorized access by storing members' data behind a secure electronic perimeter that's monitored 24/7. Our program also includes teams that monitor account activity to help protect members from fraud.

USAA has a list of things you can do to help protect your accounts. Here are some best practices that can help you protect yourself from being a victim of debt card fraud.

1. Account monitoring

Try to look at your balance every few days and monitor account activity. If your bank offers spending notifications, enroll to keep track of when and where you're spending. If you see suspicious activity on a USAA account, contact us day or night at 800-531-8722.

2. Zero liability policy^{See note1}

Ask about your bank's zero liability policy. At USAA, members aren't held responsible for unauthorized debit card charges that they report.

3. Security and fraud alerts

USAA members are automatically enrolled to receive alerts from our security team if they suspect fraudulent activity. First, verify that the alert is from your bank. Then be sure to respond to those alerts as quickly as possible to help resolve the situation and prevent loss. Learn how to verify alerts from USAA.

4. Multi-factor authentication

We confirm your identify by using a combination of characteristics that are unique to you. It's known as multi-factor authentication. This process can make it difficult for a scammer to access your account. While it may take a few extra seconds for you to log on, it can be a highly efficient way of reducing unauthorized users from stealing your money.

5. Blocking and unblocking

If you misplace your card and need to prevent anyone from using it, you can temporarily restrict its use. Once blocked, any new transactions will be declined. Keep in mind that recurring transactions will also be declined, and transactions made before the block will still be processed. Once your card is recovered, you can unblock it and use it as usual.

6. Digital wallet

Consider adding your debit card to your device for secure and convenient digital payments if your bank offers a digital wallet option. The actual card information isn't stored on the device itself or shared with merchants, so you can make secure purchases any time. This option allows you to avoid using your physical card when paying in person, which could lessen the chances of misplacing it or exposing it to a skimming device.

Another tip to keep in mind is that chip card readers are more difficult to “skim,” so if you're using your physical card and there's an option of using the chip reader versus swiping, go for the chip.

Debit card fraud may not always be avoidable, but with these types of tools and services, you and your bank can work together to keep your account safe.

What to do if your card's lost or stolen

If your debit card is lost or stolen, you should report it to your bank as soon as possible.

USAA members should use the USAA Mobile App or go to usaa.com to report a lost or stolen ATM/debit card. After the report is made, you'll receive information about how the investigation and compromised funds are being handled.

The USAA Advice Center provides general advice, tools and resources to guide your journey. Content may mention products, features or services that USAA Federal Savings Bank does not offer. The information contained is provided for informational purposes only and is not intended to represent any endorsement, expressed or implied, by USAA or any affiliates. All information provided is subject to change without notice.