New type of debit card skimming

Updated from September 2012.

Over 86% of Canadian adults have at least 1 debit card and about 74% have at least 1 credit card. Despite the convenience and popularity of these cards, there is a risk of fraud. It is important to protect your cards, just as you would cash or cheques. Some of the risks associated with debit/credit card fraud are the same as carrying around your account numbers, so protect your card information in your wallet, online and over the phone.

There is, however, another threat to card users that is unique - it's called "skimming." Skimming occurs when thieves set up a device that captures the magnetic stripe and keypad information from point of sales terminals.   It is important to note that debit card fraud has been decreasing in Canada because of the conversion away from magnetic striped to chip cards, but skimming with magnetic stripe cards still occurs.  

Crooks are now trying to get around the CHIP protection by somehow replacing a store/restaurant/gas station’s debit keypad with their own version.  The criminal’s keypad makes you push your debit card in over half of the length of the card so that a scanner can copy the magnetic strip.  The keypad then records your PIN as you enter it.  To combat this keypad switch many retailers are putting locks or other types of protection on the keypads themselves.  

Banking Changes Over 20 Years

The ways that people access and use their money has changed a lot over the past twenty years. 

Twenty years ago the standard way to do financial transactions involved: going into your local branch during banking hours, waiting in a line, doing your deposits, transfers, bill payments, withdrawing your cash, and leaving to do your other business.  Bills were often paid by mailing a cheque, which usually took a few weeks to come out of your account, and if you ever wanted to pay for something without a cheque you had to go back to your branch again to withdraw cash during banking hours.

Today consumers have a variety of ways to do their financial transactions whenever and wherever they want, faster and more accessible than 20 years ago.  Between debit cards, online banking, mobile banking (using cell phones), e-mailing money, and ATMs.

In addition to the convenience and speed of these electronic services, the decrease in cheque usage has resulted in retailers receiving far fewer NSF cheques which saves stores both time and money.  Instead of waiting for cheques to be deposited, and hopefully not bounced, debit machines allow an instant transfer of cash from the purchaser to the retailer.

6 Tips to Controlling High Interest Debt

If utilized properly, credit can be very useful. You can obtain loans to help you purchase a new car or house, for example, since it is normally hard to find sufficient funds for either in a savings account. However, you should always bear in mind that any money borrowed must be paid back with interest.

If you do not pay close attention to your finances you can quickly run into financial difficulty, perhaps seemingly insurmountable difficulty! Some people wind up borrowing money simply to pay their debts, leading to a debt cycle that spirals out of control.

People find themselves financially strapped and consequently in debt from a number of means:
  * Unemployment, regardless of the reason
  * Unexpected bills
  * Divorce
  * Out of control spending well beyond one's budget
  * Inability to put money aside for savings
  * Inattention to mounting financial obligations
  * Any catastrophic and expensive life event (e.g. severe auto accident)

Below are 6 tips to help make sure you don't get even further into debt if you are already struggling.