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Never, ever use a debit card,' warns fraud expert and ex-con artist — here's what to do instead

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Senior Contributor

Never, ever use a debit card,' warns fraud expert and ex-con artist — here's what to do instead

An article from Frank Abagnale, Catch Me If You Can

https://www.msn.com/en-us/money/personalfinance/never-ever-use-a-debit-card-warns-fraud-expert-and-e...

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Message 1 of 13
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Moderator Emeritus

Re: Never, ever use a debit card,' warns fraud expert and ex-con artist — here's what to do instead

Interesting read! Confirms what many posters have said. Smiley Sad
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Community Leader
Senior Contributor

Re: Never, ever use a debit card,' warns fraud expert and ex-con artist — here's what to do instead


@Dinosaur wrote:
Interesting read! Confirms what many posters have said. Smiley Sad

And @Saeren just posted yesterday in the big Apple post that she will "never in a million years" tie her debit card to Apple Pay Smiley Very Happy 

 

The article was an eye opener for me. I'm glad I have two checking accounts and the account that my debit card is attached to never has more than $50 in it.

GOALS: Garden til APR 2020 and 800 Club


SEP 2019: EX 791, TU 797, EQ 800
JUN 2019: EX 788, TU 794, EQ 779
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnet $25K || NFCU CashRewards $20K || Macy's $20K || Discover IT $18.7K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 3 of 13
Super Contributor

Re: Never, ever use a debit card,' warns fraud expert and ex-con artist — here's what to do instead

@CreditInspiredI am a male 😂 I feel like I have told you this before Smiley Tongue

 

But yes, I absolutely don’t use debit cards. I freeze them whenever FIs send them to me. I learned the lesson about weaker consumer protections on them the hard way. Fortunately my bank did right by me in the end but I was out the money the whole time they investigated which took about three weeks. 


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Message 4 of 13
Community Leader
Senior Contributor

Re: Never, ever use a debit card,' warns fraud expert and ex-con artist — here's what to do instead


@Saeren wrote:

@CreditInspiredI am a male 😂 I feel like I have told you this before Smiley Tongue

 

But yes, I absolutely don’t use debit cards. I freeze them whenever FIs send them to me. I learned the lesson about weaker consumer protections on them the hard way. Fortunately my bank did right by me in the end but I was out the money the whole time they investigated which took about three weeks. 


Wow @Saeren  I have been told this before by @AverageJoesCredit . I can't believe my brain can't get this right. So sorry. I promise, it won't happen again Smiley Very Happy

GOALS: Garden til APR 2020 and 800 Club


SEP 2019: EX 791, TU 797, EQ 800
JUN 2019: EX 788, TU 794, EQ 779
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnet $25K || NFCU CashRewards $20K || Macy's $20K || Discover IT $18.7K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 5 of 13
Valued Contributor

Re: Never, ever use a debit card,' warns fraud expert and ex-con artist — here's what to do instead

Ever since I read an article by Frank Abagnale on this very subject, I have had my debit cards frozen and in a lockbox. I haven't carried a debit card in my wallet in well over 2 years now. I rarely use cash anymore now that I am using CCs with rewards. 

 

I have a few friends who are Dave Ramsey followers. I keep telling them, credit cards are not bad just as guns are not bad. It is all in how a person uses them. One friend keeps telling me how she is saving so much money not having credit cards and wants to buy a house in a few years. Pays everything with her debit card. I keep asking her what her credit score is and how is she going to qualify for a mortgage if she has not established any credit? 

 

You can lead a horse to water... 

 

I will forward this article to her.

 

ETA: It was Frank Abagnale's google talk that I saw that turned me away from using debit cards.


















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Message 6 of 13
Established Contributor

Re: Never, ever use a debit card,' warns fraud expert and ex-con artist — here's what to do instead

I don’t know why people equate having credit cards with having debt. You don’t have to carry a balance!! Thanks to advice on this forum, I stopped using my debit card months ago and only use my credit cards exclusively. I earn rewards for my purchases and earn interest while my money is in the bank. I even convinced my SO to do the same.

Thanks for sharing this!


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Message 7 of 13
Frequent Contributor

Re: Never, ever use a debit card,' warns fraud expert and ex-con artist — here's what to do instead


@Medic981 wrote:

I have a few friends who are Dave Ramsey followers. I keep telling them, credit cards are not bad just as guns are not bad. It is all in how a person uses them. 


TLDR at bottom;

 

I will admit that I do follow Dave Ramsey, and when he is telling his target audience to "stay away from credit cards", it's like telling an alcoholic to stay out of the bars. So I don't really blame him for his sermon, and Medic, you are correct; It's the person and not the card/firearm. Besides, when those target listeners are $100,000 in debt, the last thing on their mind should be earning rewards on a credit card or their current FICO score. They have bigger problems.

 

Once you get yourself squared away, than yes, hopefully a credit card or two to help with that FICO score.

 

But I do disagree with Ramsey when he dismisses security and fraud issues surrounding a debit card. Sure, the odds are that the bank will EVENTUALLY reimburse you. But before your rent/mortgage check doesn't bounce?!? How long will your checking account sit at $1 (or negative due to OD fees) before you are reimbursed?

 

I have mentioned my method in the past. I am also NOT a debit card or cash person. But I did open a checking account/debit card with only $100 in it, no OD allowed, in case I ever do need to withdraw cash. It's basically my own pre-loaded debit card. If I ever need to re-load it, I swipe some money over with my phone app. Otherwise, it's a $100 loss if it is ever compromised, which I can live with. Also, for that "once-every-5-years" that for some oddball reason I have to write a check, I move the money over and this is also the ONLY account that I have checks for.

 

TLDR;

 

If you don't trust yourself with credit cards or don't qualify for any, at least open up a 2nd checking account, put "daily use" amounts in there, and use ONLY that debit card so your exposure is limited.

 

Just my opinion.

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Message 8 of 13
Valued Contributor

Re: Never, ever use a debit card,' warns fraud expert and ex-con artist — here's what to do instead

Two checking accounts, one in which you deposit your paycheck and it has not a debit card, the other has limited funds with the debit card attached. That could work.


















Your FICO credit scores are not just numbers, it’s a skill.

Message 9 of 13
Valued Contributor

Re: Never, ever use a debit card,' warns fraud expert and ex-con artist — here's what to do instead

I keep a Cap1-360 checking account with limited funds in it just so I can access cash if I need it, because I think it's a good idea.  It most recently saved my bacon (and my travel companions'), when I was on a tiny little island and needed cash - from an overpriced and sketchy AF ATM.  I chose Cap1 because it has no FTF and it's easy to transfer money into if I do deplete it.    I've used it for ages while traveling internationally.

 

My main checking account that I pay bills with does have a checkcard attached to it, but that lives in in my document/fire box and has never been used.




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