Debit Card Fraud at Michaels Stores now Includes 20 States

Chicago Tribune
May 11


Suspicious swipe pads removed from 80 stores
scale of breach 'impressive'

May 11, 2011|By Gregory Karp, Tribune reporter


http://articles.chicagotribune.com/2011-05-11/business/ct-biz-0512-michaels-20110511_1_debit-card-swipe-pin-pads


Michaels Stores says the debit card fraud stemming from tampered checkout terminals is far more pervasive than initially thought, encompassing not just Illinois but 19 other states.

The scope of the crime has surprised security experts and exposed the vulnerabilities of debit cards, a method of payment that many shoppers have come to rely on for everyday purchases.

Debit card fraud is worse for consumers than fraud involving credit cards because little stands between thieves and the money in bank accounts. In the case of Michaels' stores, many customers had money stolen directly from their accounts via ATM withdrawals.

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Another reason to pay cash if you can, or use a more secure credit card. Usually a credit card limit on theft is fifty dollars, eveidently these debit cards link directly to bank accounts. I wonder if Michaels will make good on all theft from bank accounts.
Do you think so??

you report the loss/theft and you're not held liable for any of the checks presented after the report. Of course you have to open a new account since they close the account. In the debt card scenario you keep the account but get a new card number.

Nor do they know who you are, track your purchasing habits, etc.

While it is somewhat inconvenient, it is ok for me.
I don't have a cash card or debit card. I go to the bank and pick up cash once every 10 days to 2 weeks.

Makes it a lot harder to track your activities.

People worry about being spied on via Facebook and the Internet, but your Credit Card data tells volumes about what you really do.

I have to pay off the entire balance at the end of month so no debt.