[Supras] Debit Card got Highjacked after using DISCOUNTACPARTS.COM

Mon Apr 14 16:19:57 CDT 2008

That's an interesting article you've copied and pasted to support needless paranoia.  Looks like it was provided by a card issuer or merchant processor to increase sales...

My paypal account just got hacked, it cost me nothing.  I've lost a debit card, it cost me nothing.  I've lost a checkbook, it cost me nothing.  I speak from 10 years employment experience in transaction processing / computer operations in three different consumer banks, and have never once seen a consumer liable for any amount of truely unauthorized transactions.

Besides, that ATM non-debit card you cherish?  It's an identical "Access Device" as defined by Reg E as a debit card.  So perhaps you shouldn't get that either?  Or checks?  Heck, maybe we can all just keep our cash under the matress to be safe...

-Craig

---- Hacker J <jonbhacker at yahoo.com> wrote: 
> Unequal fraud protection
> 
> Under federal law, your liability for fraudulent charges on a debit card can be greater than it is
> for a credit card. With a credit card, you're only responsible for up to $50 in unauthorized
> purchases. But with a debit card, you can lose up to $500 if you don't report the theft or loss of
> your card or PIN within two business days of discovering the problem. And if you fail to report
> the unauthorized charges within 60 days of the date of the statement that lists them, you could be
> held liable for any unauthorized withdrawals after that date. Those include the full value of
> credit lines and funds in savings linked to your checking account for overdraft protection.
> 
> In practice, Visa and MasterCard both have "zero liability" policies that go beyond the federal
> law by exempting debit cardholders from liability in most cases when a bank investigation confirms
> a transaction is fraudulent. But there are loopholes in those policies.
> 
> Even if consumers were granted liability protection that is identical to that for credit cards,
> the headaches of setting the record straight are much greater with fraud on a debit card, says Ed
> Mierzwinski, consumer program director at the U.S. Public Interest Research Group. "Unlike a
> credit card, payment for a fraudulent transaction has already come out of your bank account, so
> you're fighting over your money, not theirs, and you could be bouncing other checks while you're
> waiting for it to be resolved," he says.
> 
> What's more, while there have been a few well-publicized security breaches involving the theft of
> debit-card PIN numbers by hackers breaking into store computer databases, retailers generally
> report that the incidence of fraud is higher when consumers sign for debit purchases rather than
> using a PIN. "Signature-based transactions are definitely less secure, so it's really outrageous
> that banks are steering customers to use signatures rather than PINs simply because it generates
> more fee income," says Avivah Litan. One major retailer confided to her that fraud on
> signature-based debit purchases at his company's stores is 15 times higher than for transactions
> authorized by a PIN.
> 
> Ironically, although your odds of becoming a fraud victim are lower when you use a PIN, your
> protection from liability if fraud does occur is greater with a signature debit card because card
> issuers may exclude some types of PIN transactions from their zero-liability policies. Litan
> advises calling your card issuer to find out what your liability is for unauthorized signature vs.
> PIN debit purchases. She says that since banks encourage the use of signature debit, you're likely
> to have better protection when you sign.
> 
> 
> --- cthommes at adelphia.net wrote:
> 
> > Not at all true.  Check out FDIC Regulation E regarding electronic funds transfers.  You'll
> > learn that debit cards are really no less safe than credit cards.  And it's only your money that
> > is gone until the bank, as required by aforementioned regulation, must provisionally credit your
> > account for disputed charges.  Then it's their money.
> > 
> > Generally, though, credit cards do offer better voluntary buyer protection, which deals not with
> > unauthorized use, but with unsatisfactory purchases.
> > 
> > -Craig
> > 
> > ---- Hacker J <jonbhacker at yahoo.com> wrote: 
> > > 
> > > --- supras-request at supras.com wrote:
> > > 
> > > > Send Supras mailing list submissions to
> > > > 	supras at supras.com
> > > > 
> > > > To subscribe or unsubscribe via the World Wide Web, visit
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> > > > or, via email, send a message with subject or body 'help' to
> > > I agree.  My bank has repeatedly tried to issue me debit/atm cards.  I always chop em up and
> > ask
> > > them to send me just a plain atm card.  The federal protections ($50 liability etc) only apply
> > to
> > > credit cards. The main issue with debit card fraud is that it is your money that is gone. 
> > With a
> > > credit card it is the bank's money, which is more of an incentive for them to get it back.
> > > 
> > > Jon
> > > 
> > > 
> > > > 
> > > > Use a credit card for online purchases, never use a debit card.  Credit cards
> > > > offer more protection.  Plus many of them have a service that creates a temporary
> > > > number with a specified limit and expiration date. 
> > > > 
> > > > Otherwise, good luck!
> > > > 
> > > > 
> > > > On Mon, Apr 14, 2008 at 10:30:59AM -0400, D P wrote:
> > > > > 
> > > > > I used my debit card to purchase a new condenser for my Chevy Venture on Thursday April 3
> > from
> > > > DISCOUNTACPARTS.COM. Then on April 10, my entire checking account was wiped out. They got
> > almost
> > > > $1000.00 from the account and it was left in negative from some more purchase transactions
> > in
> > > > pending.The reason I'm 99.9 percent sure that it was discountacparts.com is because one of
> > the
> > > > merchant (Banana Republic) called me ON MY CELL PHONE to verify the order. I had entered my
> > cell
> > > > phone number on the discountacparts.com order.I'm so glad Banana Republic called me to
> > verify. I
> > > > asked the lady what prompted them to call and she said it's because the bill to and ship to
> > > > addresses were different.So, now I'm working with my bank trying to get my money backStupid
> > ass
> > > > Regions bank has no live person to speak to after hours so had to wait until the next day to
> > > > contact them. I did call the sherriff right away though.
> > > > > Darren92T 5-Speed White PackageCanadian Model in Florida
> > > > 
> > > > 
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> > > 
> > > 
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