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More proof debit cards are riskier than credit cards
Posted on May 16, 2011 by Tom Fragala
We've been saying this for years.
For the roughly 185 million U.S. consumers with debit cards, the recent security breach at arts-and-crafts retailer Michaels Stores offers yet another cause for concern. The reports allege that the thieves did more than simply steal debit-card information from stores in 20 states they used it to take money from customers' bank accounts.This isn't the first time debit-card information has been stolen, but these kinds of crimes are becoming more common and more serious. The Michaels thefts follow a similar case last summer at Aldi Inc. grocery stores that reportedly led to customer reports of debit-card fraud. Year-to-date, debit and credit cards make up 20% of all consumer data breaches, up from 11% during the same period last year, according to the Identity Theft Resource Center. Debit-card fraud losses incurred by banks hit a record $788 million in 2008, according to the latest estimates from the American Bankers Association, due mostly to stolen and counterfeit debit cards. "This is going to get worse you're going to see more bad guys out there looking for debit card information," says Jay Foley, executive director at the ITRC.
Filed under: Credit
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