Debit cards are fairly easy to use. Unfortunately they are also easy targets for fraudulent activity, but many people are unaware of these financial risks. For example, as a result of a monthly review with his accounting firm, a client learned that his bank account has been nearly depleted as a result of fraudulent debit card activity. By the time he found out, the balance was nearly zero.
Why are debit card users so vulnerable to fraud? Unlike credit cards, where the cardholder’s risk of loss due to unauthorized transactions is limited to $50, with a debit card you could be liable for the entire loss! Your entire account balance – and then some – could be entirely wiped out. That’s quite a financial risk.