How to Protect Your Bank Card from Fraudsters

Discover how to protect your money and the actions to take if criminals access your card account.

Some tips may seem basic, but they form the foundation of your security.

Common Bank Card Fraud Techniques

Fraudsters' creativity knows no bounds. Every year, new and more sophisticated methods emerge. Let's explore the most prevalent ones.

Card fraud is commonly known as carding.

Starting with the classics: Imagine you're withdrawing cash at an ATM, rushing and entering your PIN while chatting on the phone. You might not notice a discreet individual in a cap and dark glasses glancing over your shoulder. Meanwhile, they carefully observe and memorize your PIN. Next comes a simple robbery—your money is gone.

Sometimes, in the rush, you might not realize the ATM is fake. These counterfeit machines look identical to real ones, complete with stickers and instructions. You insert your card, enter your PIN, and the screen displays messages like "Device malfunction," "System error," or "Insufficient funds." You move on to find another ATM, but by then, fraudsters have already collected all your card data.

Another trick involves simulating ATM malfunctions. For example, late at night, you try to withdraw your salary. You insert your card, enter the PIN and amount, and the card is returned, but the cash dispenser doesn’t open. You assume it's broken and step away to call the bank. Meanwhile, thieves remove tape blocking the cash slot and take your money.

There's also the "Lebanese Loop" scam, where a thin film loop is inserted into the card slot, trapping your card inside. A helpful bystander offers advice to retrieve it, but while you try, they take your card and use your recently entered PIN to drain your account.

Even genuine ATMs can be compromised if equipped with a skimmer—a device that reads the magnetic stripe data on your card. Skimmers are disguised as part of the ATM, making them hard to detect.

Fraudsters use transmitters to capture skimmer data and create counterfeit cards. These fake cards allow them to withdraw money from your account. This method is called skimming, derived from "skimming off the cream."

To obtain your PIN, they use additional devices like an overlay keyboard that records keystrokes or miniature hidden cameras disguised as brochure holders aimed at the keypad.

A variant called shimming uses a thin, elegant circuit board inserted inside the card slot, nearly invisible and harder to detect than bulky overlays. Creating a shim requires advanced technology as it must be under 0.1 mm thick.

Phishing is a widespread online fraud method. Many are familiar with fake emails posing as banks, urging you to click links and verify your details on counterfeit websites that look authentic except for minor URL errors.

A growing variant is vishing—phone scams where robocalls claim your card is blocked or hacked, urging you to call a number. The "operator" then tricks you into revealing card details, leading to theft.

Since physical card presence is not always required, fraudsters increasingly use social engineering. For example, a scammer posing as a rental agent might call, express interest in your furniture, and ask for card details to "transfer payment," attempting to obtain sensitive information.

Many cards link to phone numbers for SMS confirmations. Criminals steal phones, intercept messages, or clone SIM cards to access accounts.

Essential Safety Tips for Card Use

When you receive a debit or credit card, you also get a bank service agreement and a PIN envelope. However, a safety guide is often missing. Here are key recommendations:

• Opt for hybrid cards with both chip and magnetic stripe for enhanced security. Pure chip-only cards are rare in some regions but offer better protection against skimming.
• Memorize your PIN. If needed, write it down separately from your card.
• Never share your PIN, CVV2 code, card expiration date, or registration details with anyone. Banks never request this information. Only the 16-digit card number is needed to receive payments.
• Avoid using payroll cards for shopping or online payments. Transfer funds to a primary card or set daily transaction limits.
• Use ATMs inside bank branches or secure locations with video surveillance.
• Inspect ATMs for suspicious attachments on the keypad or card slot. Avoid using questionable machines.
• Cover the keypad when entering your PIN and politely ask bystanders to step back. If issues arise, do not follow advice from strangers; contact your bank immediately to block your card.
• If your card is lost or you suspect unauthorized access, contact your bank to block it immediately.

Support hotlines are usually printed on the back of your card and operate 24/7. If your card is stuck in an ATM, call the service number displayed on the terminal.

Check if your bank offers card insurance or fraud protection programs for added peace of mind.

Safe Online and Mobile Banking Practices

Banking services are accessible remotely, allowing payments and transfers from home.

Internet banking provides access via a secure website or app, while SMS banking informs you of transactions via text messages.

To minimize risks, follow these precautions:

• Avoid logging into your bank account from public computers or unsecured Wi-Fi networks. Always log out and clear your browser cache afterward.
• Keep your antivirus software updated and use the latest versions of browsers and email clients.
• Do not download files or click links from unknown sources. Block suspicious senders immediately.
• Only enter your login credentials; avoid providing additional personal information unless absolutely necessary.
• Verify the website URL uses HTTPS and matches your bank’s official domain to avoid phishing sites.
• Create strong, unique passwords for your accounts and use one-time passwords (OTPs) for transaction confirmations.

Remember, banks never send messages about card blocking or ask for confidential codes over the phone.

Protect your SIM card by promptly informing your bank of suspicious messages, never calling numbers provided in such messages, and setting phone passwords. If your SIM is registered in your name, request that it cannot be replaced without your consent.

What to Do if Your Card Is Compromised

Disputes between clients and banks over unauthorized transactions are common. Clients often demand refunds, while banks may claim the customer was negligent.

Federal laws, such as the National Payment System Act, establish rules protecting cardholders. Banks must refund unauthorized transactions unless they prove the client misused the card.

Since 2018, banks can block cards suspected of fraud and must notify the client, who then confirms or denies the transaction.

The legal responsibility is divided as follows:

1. If the bank fails to notify you of unauthorized transactions, it bears full responsibility.
2. If notified, you must inform the bank by the next business day; otherwise, you assume responsibility.
3. If the bank proves you violated card usage rules, you are liable; if not, the bank must refund the full amount.

Timely notification—within one day of discovering fraud—is crucial for reimbursement.

Keep proof of your notification, such as a stamped copy of your bank statement or registered mail receipt.

Reporting to the bank does not replace filing a police report.

Summary and Action Plan

If unauthorized charges occur on your card, follow these steps:

1. Stay calm, call your bank immediately to block the card, and request your account balance and recent transactions.
2. Visit the bank within 24 hours to file a written complaint, obtaining a receipt from an authorized employee.
3. If the bank refuses to accept your complaint, escalate the issue to the prosecutor's office.
4. File a police report, especially in cases of theft or robbery.
5. Await the resolution and refund.

If the bank denies reimbursement citing misuse, you have the right to pursue legal action.

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