Bank experts talk debit card fraud

LEXINGTON, Ky (WTVQ)- It’s a problem that just seems to be getting worse and there doesn’t seem to be a clear answer on how to fix it.

Debit cards being used by strangers. We’re on your side with a look at why it’s happening to so many of us.

“Debit card and credit card fraud is as abundant as ever,” says Shane Ensminger, the Director of Financial Intelligence and Security at Central Bank in downtown Lexington.

Ensminger says fraud typically happens when scammers hack into merchant’s systems and gain access to their customers data.

“That’s where your problems are with cards is breaches. Most of the breaches are on the merchant end. So whatever store you may have shopped at online or in person, if somebody hacks into their system and downloads all their cardholders data, now they have your card account information. And then they just duplicate that card and they go online or into a brick and mortar store and spend all the money on that card,” says Ensminger.

Ensminger says online shoppers are at a greater risk because they’re shopping when their card isn’t present. You’re putting in your card information online, which makes it easier fpr scammers and fraudsters to gain access to.

There are some solutions, however, including making sure you go into the stores for in-person transactions and using the chip on your card or uploading your card to Google Wallet or Apple Pay.

“Now if you’re a smart phone holder and you put that card in your wallet, whether its your google pay or apple pay wallet, it tokenizes it and encripts it. So your card number is never shared with the merchant. Only you and your bank know your card number,” says Ensminger.

Ensminger also suggests if you do shop online to shop at a trusted retailer, like a big box store. But he says using a debit card with a chip is the most protected way of spending money.

Ensminger says banks typically offer online information on what to do and ways to avoid card fraud. So it’s important to educate yourself on what to do if you think your card has been compromised. And if you believe it has, contact your bank immediately.