This article from USA TODAY is a good warning about the increased security risk with debit card skimmers. It was interesting to read that their best advice was to basically use your card less and go back to cash. They present a way of thinking that says eventually “high tech/innovation” will be too much and will result in the need to go “no frills/low tech”. That reminds me of my old Chevrolet.
Consumers – Be mindful this type of fraud can be everywhere and to check your statements for accuracy regularly. Online banking will help facilitate this process in a more real time manner. Also “opt in” if your financial institution offers transaction alerts and fraud monitoring.
Institutions – Look for vendors/services that offer transaction alerts (i.e. text every transaction over $25) to help your customers stay on top of potential fraudulent transactions. This can help your customers monitor their transactions themselves as well as limit fraud to a single transaction. Have services that monitor your POS transactions in real time to help alert you sooner and actively engage in customer education.
I don’t see a good way to remove this risk but mitigating as much as possible through strong controls and customer/institution awareness. Which brings up another topic: Will a “digital wallet” or “passbook” begin the new wave of consumer buying…eventually making debit cards a thing of the past?