Numbers game

   Everyone feels robbed at the gas pump sometimes. For Amy Caterina, it was more than sticker shock. Her purchase nearly cost her entire checking account balance. 

    Caterina, an artist and adjunct professor at SAC, was a victim of debit card fraud.  Her checking account information was most likely captured by a false card reader at the pump, according to her bank. By the time she became aware of the theft, her account was nearly empty and thieves had purchased electronics in her name across Southern California.

   "I was shocked," Caterina said. "And also, a little bit glad that I was poor, or fiscally challenged because who ever stole the number wasn't getting very far with it! Nervous--now my card has to be deactivated and I had no cash.  I am very reliant on that piece of plastic."

   With the new credit card laws in place, students may find it harder to get credit and may rely on their debit cards for electronic transactions. Because of this, students are more susceptible to debit card fraud.

    SAC student Laura Rodriguez uses her debit card for "everything." She never carries cash or credit cards.  She shudders at the thought of someone stealing her debit card data.

   "It would be devastating," Rodriguez said. "It's so personal. And it's such a hassle; you have to go through so much trouble to get [your money] back."

   Debit card fraud can be riskier than credit card fraud, because thieves have access to real funds, not just credit. They can clear your account, as in Caterina's case, or slowly drain it with small, less noticeable transactions over time.

  The U.S. PIRG, a federation of state Public Interest Research Groups, describes the ramifications of debit card fraud on its web site. "Your debit card usually accesses your checking account. If the thief drains it, you have to fight with the bank to get your own money back. Meanwhile, your other checks could bounce and you could face bounced check fees, bad credit reports, cash flow problems and other hassles." 

   Furthermore, with debit card fraud, you may have greater liability.  In cases of credit card fraud, federal law limits your liability to $50. With debit cards, you must report the loss or fraud within two days or you could be liable for $500 or more. Some banks have voluntary limits to protect customers, but those policies vary by bank.

   To protect herself from debit card fraud, Rodriguez keeps organized and aware of her bank balance. "I keep my card with me at all times; I just try to keep my belongings together." She watches reconciles her account to her monthly statement, and reviews her transactions daily. "If even one dollar is missing, I know where it went." 

 Watching your balance is critical, because your liability for fraudulent charges can be related to how quickly you report them. 

   To reduce risk of fraud, be wary of how and where you use your card. Never give your number over the phone unless you are certain you are speaking with a reputable company. Use particular caution at gas pumps and other unattended, automated transaction points where thieves may install a false reader to capture your card information. And of course, never write your pin down or share it with others.

   Sometimes, theft is unavoidable. That's when your choice of financial institutions comes into play. Both Caterina and Rodriguez bank with credit unions and feel confident in the protection and service they offer.

   Caterina had all her funds back within a week, a feat she attributes to her credit union, Schools First, and her 12-year banking relationship with them.  

   "I wish I could say I'll never use my card at the pump again, or that I won't go to that gas station, but I don't carry cash and always let my tank get low." Caterina said. "I am very cautious about who is in my perimeter when I'm at the pump and do try to go inside to pay."   

   Her advice about the issue? "Keep your wits about you at the pump and choose a bank that has your back."