In 2024, debit cards are a popular method of payment — almost as popular as credit cards. But there are several drawbacks to using debit cards over credit cards and other forms of payment, including the fact that they don’t give you as much protection against fraud.

If someone uses your debit card without your permission — also known as debit card fraud — will you get your money back? If you don’t catch the issue fast enough, there’s a chance your bank account could be cleaned out for good.

Debit card fraud is a two-part crime that starts with having your debit information compromised. This can happen in a variety of ways:

• Data breach

• Theft of your physical debit card

• Theft of your debit card number

• Theft of a new card from the mail

• Theft of an ATM and the information that’s stored in the machine

• Skimming of card information at an ATM, gas pump, or other point of sale

Once the information is stolen, the thief commits the second part of the crime by using your card in person or online, cloning the card, or selling the card details on the black market.

This crime, which happens most often through online theft of a victim’s debit card information, has become more common in the past few years and is expected to continue increasing as technology evolves. In 2023, 83,370 people reported debit card fraud to the Federal Trade Commission (FTC).

As a result of Federal Regulation E, there are rules that protect you from losing all of your money due to debit card fraud.

According to the regulation, your liability (the amount of money you can potentially lose) depends on your response to the crime. The faster you inform the card issuer, the less liability you have for unauthorized charges.

You can also check to see if your bank has additional debit card fraud protections to help protect your money, but the possibility is slim.

Despite the fact that many major banks and credit unions advertise “zero liability” policies for their debit accounts — including Bank of America, Chase, Citizens Bank, HSBC, and Navy Federal Credit Union — these institutions don’t offer any coverage beyond what you’re guaranteed through Regulation E.

Read more: What is Regulation E, and how does it protect you?

Some homeowners and renters insurance plans have extra coverage for debit card fraud beyond what federal law provides. However, if you didn’t pay extra for this protection, you probably don’t have any coverage.

For example, State Farm policies allow you to add fraud coverage to your plan. And if you have Nationwide renters insurance, you may have been prompted to select a reimbursement limit for unauthorized debit and credit card transactions when you set up your policy.

If you find that someone has made an unauthorized transaction on your debit card, or you believe someone plans to use your card without permission, it’s crucial to take these steps and report the incident ASAP. The longer you wait, the more money you could lose.

1. Call the card issuer or log into its mobile banking app. Report the incident, have the card canceled, and get a replacement.

2. Contact one of the three credit bureaus to place a fraud alert on your reports. Fraud alerts are free, and they protect you for one year by requiring companies to verify your identity before approving new credit cards and loans in your name. You can contact any one of the credit bureaus here:

3. File a report with the FTC at IdentityTheft.gov and see further recommended action steps based on your situation.

4. Review your bank statement to see where your card was used. Contact the fraud department for each impacted business and ask them to remove the fraudulent charges.

Once you report the incident, be prepared for the solution to take some time. Unfortunately, it could be a matter of days or weeks until your account is reimbursed for the money that was stolen.

Read more: How to dispute a debit card charge

The best way to avoid debit card fraud is to take preventative measures that protect your card. Practicing these good debit card habits is your best defense:

• When possible, always tap your card instead of swiping

• Never use ATMs or card readers that appear damaged

• Keep your debit card in a secure place

• Memorize your debit card PIN and don’t write it down or share it

• Cover keypads when entering your PIN

• Avoid remote ATMs or machines in poorly lit areas

• Set up transaction alerts for unusual account activity

• Never give your debit card information to an inbound caller

To avoid losing money, be sure to review your bank statement regularly. If you let even a few business days go by before reporting a fraudulent transaction, you could end up losing as much as $500.

Read more: Guide to ATM safety: Tips for protecting yourself and your money

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