Last October, Patricia Washington's doctor's office informed her that her debit card payment for the last office visit was declined. She called her bank and learned that not only had that transaction been declined, but several checks bounced and her account was overdrawn. "A check for $602 written to Home Depot had cleared my account,†says Washington, 34. "Someone took my bank routing and account numbers and duplicated my check by sending the information to a mail-order check company. Then the criminal wrote the fraudulent check to Home Depot.†Washington filed a report with Bank of America, which refunded her money within two days, including overdraft fees. Approximately 71% of organizations experienced attempted or actual payment fraud in 2010, according to the Association of Financial Professionals. Legislation such as Dodd—Frank, the CARD Act, and the Fair Credit Billing Act have been helpful to consumers with credit cards, but the rules undergirding fraud protection remain inadequate for bank cards: The protections for debit cards under the Electronic Fund Transfer Act are much weaker than those for credit cards. "A lost or stolen debit card is typically a much bigger headache (and a more expensive loss for the cardholder) than a lost or stolen credit card,†says Joe Ridout, consumer services manager for Consumer Action, a financial education organization. It's important to understand how criminals steal banking information. Many use cell phone-sized devices with a magnetic strip called a skimmer to retrieve data from your bank card. Skimmers can be used at an ATM, gas pump, and even at a restaurant. Hidden cameras and Dumpster diving are other means. "If you discover that someone has wiped out your bank account, call the bank immediately. Contact anyone who gets automatic payments such as mortgage and insurance companies, to explain that payments may be late or not go through,†advises Justin Pritchard, a certified financial planner and banking expert at About.com. "You may want to get a letter from the bank saying you were a victim of fraud, and provide police reports to anybody you've paid late. It could be harmful to your credit if you don't document the fraud,â€Â says Pritchard. (Continued on next page) Identity theft begins with access to personal information found on mail, credit cards, identification, and other documents. Leverage online banking and sign up for electronic delivery of information to avoid receiving account statements or canceled checks in the mail. Also be aware of phishing scams where fraudsters send fake correspondence to get you to give out your bank account number. "Sign up for direct deposit to have paychecks, dividends, tax refunds, and other deposits sent directly to your bank account,†advises Geri Thomas, SVP, Global Diversity and Inclusion Executive and Georgia Market President for Bank of America. Avoid unfamiliar websites, use a shredder, sign up for e-mail or text alerts from your bank, and place a lock on your mailbox. Also avoid clicking on links saying they're from your bank. Instead, go to your bank's website and log in to your account. "It's important to protect your debit card because it can be more dangerous than a credit card. Under federal law, credit cards have more protection. If you don't report a debit card stolen within two days, you can be responsible for $500 in charges. After 60 days, it is unlimited,†cautions Ridout. To reduce your chances of becoming a victim, be on the lookout for these red flags: If you see misspelled words when banking online, or receive a request for your Social Security number when you already have an account. Alert the bank immediately. You're at the ATM and the card swipe looks altered, the machine is not under camera surveillance, or people are lingering around. Leave quickly and report this to bank officials. If you'd like to file criminal charges, you can, but the bank will likely conduct its own investigation. "If you know the person that has stolen from you such as a roommate or relative, you can tip the cops off and file charges. Other than that, I would have the bank handle the investigation,†says Pritchard.