Is Your Debit or Credit Card Compromised?

What should you do if you believe your debit or credit card has been compromised?  Yes, there are consumer protection regulations that can help.  For example, the Electronic Funds Transfer Act (EFTA) and the Consumer Financial Protection Bureau’s (CFPB’s) “Regulation E” limit your liability for losses from unauthorized transactions.

If your debit or credit card number is used to make an unauthorized withdrawal from a checking or savings account, minimize your losses by contacting your bank as soon as possible.  Your maximum liability under EFTA is $50 if you notify your bank within two business days after learning of the loss.  If you wait longer, you could lose more, according to the law.

If your credit card number is used without your authorization, your liability is normally capped by the Truth in Lending Act (TILA) and the CFPB’s “Regulation Z” at $50 for all unauthorized transactions, and remaining credit card losses are typically absorbed by the card issuer.  Some other worthwhile precautions you can take include:

  • Do not use ATMs in remote places, especially if the area is not well lit.
  • Go elsewhere if you see a sign directing you to only one of multiple ATMs in a location.
  • Shield the keypad with your hand when typing your PIN at the ATM or a retailer’s checkout area.
  • Regularly check your bank and credit card accounts for unauthorized transactions, even small transactions that you might think might not be worth reporting to your bank.

For more information, click here.

Teaching Suggestions

  • Ask students to summarize the major provisions of the Electronic Funds Transfer Act (EFTA).
  • Why is it important to notify your bank as soon as possible when your account has been compromised?
  • Let students debate the issue, “Use cash, why use a debit card?

Discussion Questions

  1. What is the Truth and Lending Act and how does it protect you if your debit/credit card is compromised?
  2. How can you determine if an ATM has a false cover or it has been tampered?

What Eight Numbers Do Identity Thieves Want?

This article explains why identity thieves want eight different numbers and also provides some helpful tips for avoiding identity theft. The eight numbers include:

1. Phone numbers
2. Specific dates (birth, college attendance, employment, etc.) and Zip Codes
3. PIN Codes
4. Social Security Numbers
5. Bank Account Numbers
6. IP Address
7. Driver’s License and Passport Numbers
8. Health Insurance Account Numbers

For more information go to

http://finance.yahoo.com/news/8-numbers-identity-thieves-want-103033107.html

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Stress that identity theft is on the rise. According to the article, data breaches are now the third certainty in life and sooner or later, you will become a victim.
  • Ask students who have had their identity stolen what steps were necessary to solve the problems associated with identity theft.

Discussion Questions

1. What have you done to protect the eight numbers that thieves want and need to steal your identity?

2. Today many companies offer services designed to help protect your identity. These companies charge from $100 to $200 a year or more. Would you consider using one of these services?