First I heard about it was a couple days ago when B got ripped off for $600. Someone used his bank ATM VISA debit card to make a purchase of $600 of cosmetics in Los Angeles. I guess after that they tried four more times to rip him off but those were declined.
Sadly he's with Chase now who has a history of handling these things badly. Because it's a debit card it's hooked to his bank account which means his account is frozen and he can't access the money. Chase will not close the account.
From what I read on-line, this has been happening a lot and Chase's policy is to tell people too bad, we think you authorized the transaction. Since it's money from bank accounts and not credit cards, the customer is out not Chase.
Now I'm reading today of other people having this happen including BofA customers. I do not know if they are VISA debit cards. I also had someone the other day attempt to buy somethings from eBay outside of eBay using a VISA debit card. I declined because I can only take Paypal and they claimed not to have a Paypal account. The whole thing smelled.
From what I read, it's important to get a police report to have the banks take you seriously. Sadly B found out the police aren't really investigating this. However from what I'm seeing on-line, this is becoming a massive problem and people are losing thousands of dollars.
He found out because he checked his account. So checking your account if you have a VISA debit card is important. I think also maybe getting it closed and having a non-VISA debit card might also be something people should consider.
Here is why. With a regular ATM card you have to use a pin number no matter where you use it. You can not just sign your name. It does limit the use of it, but actually it's better to pay with cash because doing that tends to make people spend less. If you don't want to carry cash around, have a credit card with a low limit on it and pay it off every month.
I say credit card because stores usually ask for ID when using one. On-line transactions ask for those numbers on the back. And if there is fraud, the credit companies are more likely to deny the charges since they can be the ones out the money. Unlike a debit card fraud where the money comes from your bank account.
Anyway, B is going to move his accounts to a good credit union for now, once he can get his money. All I can figure is someone has accessed the data banks for the VISA debit cards because this is turning out to be extremely widespread with many people getting ripped-off.
So I'm posting this as a warning for people to at least pay attention to your accounts if nothing else. Me, I don't have a VISA debit card but still going to keep tabs on things.