What is debit card fraud?

Ah, digital-age parenting! All the excitement that comes with raising kids, plus the extra challenge of keeping them safe online. The internet is full of great things, but some of it isn't so great — and one of those not-great things is debit card fraud.

Children are less experienced with money, so they need extra protection from banking fraud. We know you're committed to having their backs — all you need is the know-how. Luckily, that's what we do best.

What is debit card fraud?

Debit card fraud is when someone uses your card without your permission. They might use the number on your card to buy something from an online store. Some steal your physical card and just start using it.

Scammers target adults, kids, and teens — anyone who has a debit card. 

What kinds of debit card fraud are there?

Fraudsters are smart, and they've come up with many types of debit card frauds. They know how to take advantage of how a debit card works. The card takes money directly out of a linked account, no waiting required.

Card skimming

Card skimming happens at ATMs and other payment stations where you insert your card. Scammers attach a tiny device that steals your card details. There might also be a camera that captures your PIN.

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Phishing

Kids and teens are also especially vulnerable to phishing scams. Phishing scammers use digital channels like email to pretend they're someone else. They might claim to be a bank, school, employer, or almost anyone else.

Consider one example of debit card fraud. Say your kid is 17 and loves buying vintage jewelry on eBay. A phisher reaches out with an eBay email address. They say they need updated card details to complete a purchase. A 17-year-old may not have learned about phishing scams, so they hand over their card details. The next thing they know, "eBay" has cleared out their account.

Phishing scams are also a common cause of child identity theft. If a child or teen gives away too much information, a scammer can do all kinds of things in their name — from buying a car to cheating on their taxes.

Stolen card fraud

Debit card scammers don't always use technology to attack. Someone might lose their card or leave it lying around where a thief can grab it. The thief can then use the card to buy as many expensive things as they can before the cardholder reports it stolen.

How to protect yourself from debit card fraud

Card issuers have debit card fraud protections built in to help stop scammers. Mostly, though, it's how you use the card that matters.

Postal code entry

Ever had to enter your postal or ZIP code to buy gas? That's postal code debit card protection. Card companies use it to check if charges appear from outside your normal buying range. So, if you live in Florida and someone starts buying gas in North Dakota, you might get a call, or the bank might freeze your account.

Name-on-card

When you buy something online, you enter your credit or debit card information, including your cardholder name. It's one of the ways card companies make sure no one else is using your card. 

In-person sellers might ask for your ID to check your name. Some people even write "Check ID" on their physical debit cards.

Card safety

When it comes to your debit card, there's no such thing as "overprotective." Use these expert tips to keep your info safe:

• Keep your account information private: Don't write down your PIN and carry it with you. Shred old cards and statements when you don't need them anymore.

• Check your account — a lot: Open your banking app and make sure nothing looks weird. 

• Choose "multi-factor authentication" online: Some sellers make it mandatory. You have to enter a code from your phone to access your account. That way, it's almost impossible for someone else to get in.

The more careful you are, the lower the risk. It's science.

How to protect your kids and teens from debit card fraud

You need two things to keep fraudsters away from your kids — education and the right card. 

Teach them the basics

Scammers assume kids and teens don't know basic stuff, like how an ATM works or why others shouldn't see your account. Go over all of it as part of the process of opening an account.

Practice internet safety

Lots of debit card fraudsters hang out online. It's a great place to scam kids and teens who don't know the playbook yet.

Fight back by teaching your kids and teens all about internet safety. Make sure they know not to share personal or financial details with anyone.

Set spending limits

The Greenlight debit card lets you limit your kid's or teen's spending limits in certain categories. It doesn't only keep them from overspending — it keeps fraudsters from overspending for them.

What to do if you've been a victim of debit card fraud

Look, card fraud happens. It's not okay, but it's also nothing to be embarrassed about. If you or your kid or teen gets scammed, here's the plan:

• Change your debit card PIN immediately: Depending on the card, you can do it in the associated app or by calling a customer service line.

• Freeze your card and account: Some cards, including Greenlight, let you do it instantly. Others have you call the issuer.

• Ask for a charge reversal: With Greenlight's zero-liability guarantee from Mastercard, your kid is never on the hook for stuff they didn't buy.

• Launch identity protection mode: If there's any chance the scammer got personal details, go to IdentityTheft.gov and follow the steps to report the case.

Protection and safety features from Greenlight

With Greenlight's debit card program, you get advanced security and parental control protections, including:

• Instant card on-off controls

• Real-time spending notices

• Spending and withdrawal limits

There's also the option for identity theft protection with Greenlight Infinity. Sign up any time for automatic alerts, monitoring services, and more. 

Sign up for Greenlight today

Learning how to use a debit card is a milestone for the future generation. With Greenlight, you can help them through it safely.

Greenlight is the go-to money and safety app for kids, teens, and families. Sign up today, and get your kids on the safe, secure, and convenient debit card train.