Having a business debit card can make paying for goods and services much more convenient. Transactions happen instantly – you don’t have to wait for a check to clear or have payments due on a bill at the end of the month. With a VISA debit card, included with every Innovator Business Checking account, you get the added benefit of earning unlimited 1% cashback on online and signature based purchases.
There are many reasons why having a business debit card is great, but there’s also the risk of experiencing debit card fraud. Thankfully, debit card fraud is often easy to catch if you’re monitoring your card activity closely and taking the proper steps to protect yourself.
What does debit card fraud look like?
Debit card fraud occurs when someone gains access to your debit card number and, in some cases, your personal identification number (PIN), and uses this information to make unauthorized purchases using your debit card or withdraw cash from your account. This kind of fraud can come in many forms. The most obvious example of debit card fraud is someone stealing your physical debit card and using it to make purchases or bank withdrawals, however it’s also possible for hackers to find your data if you make purchases through insecure networks online.
Another form of debit card fraud is employees using the company debit card for personal expenses. These can be easily disguised, particularly if those purchases are at stores and websites the company normally does business with. This type of fraud can often be the most difficult to detect.
How can you protect your card?
There are many things you can do in order to better protect your debit card information from potential fraud and reduce the chance of any losses if fraud ever did occur. Some examples include:
- Pick the right business checking account: Different banks have different features. Make sure that the business checking account you choose has security features such as multi-factor authentication and alerts for suspicious activity. Choosing an account with online banking also allows you to review your transactions more conveniently in order to spot suspicious activity on your own. Having a mobile banking app can have the added bonus of being able to instantly lock your business debit card right from your phone.
- Check your account regularly: You can’t rely on security features alone. Reviewing your card activity daily can help you to spot fraudulent transactions quicker. If you do spot suspicious activity, make sure you’re reporting it to your bank.
- Memorize your PIN: Don’t write your PIN down or put it onto your phone. This only gives thieves an opportunity to find and use this information. The only way to ensure that your PIN is secure is to memorize it and not share it with anyone.
- Beware of phishing scams: Never click a link from a sender that you don’t recognize or don’t trust or share your banking information over the phone. There is a chance that these are phishing scams – a type of cyberattack where scammers will disguise themselves in order to bait people into sharing personal or sensitive information and data.
- Avoid using your card in unfamiliar locations: Using your debit card in unfamiliar locations can be unsafe due to a form of debit card fraud called “skimming.” Your debit card can be “skimmed” at shops, restaurants, or even ATM machines without your knowledge. The thieves use an electronic device called a “skimmer” that reads your card information from the magnetic strip when you swipe it.
Reporting debit card fraud
If you see any suspicious activity in your debit card transactions, you should report the activity to your bank immediately. Timing can be critical when it comes to preventing loss. Make sure to have all the details of the fraudulent transactions when you call.
If you are a Grasshopper client and you believe that you are a victim of debit card fraud, you can contact a Client Services team member here.
By Michaela Lenahan in Business Banking