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Why debit card users are at a higher risk for fraud

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Credit card holders aren’t the only ones at risk for fraud

Debt cards have their own risks for fraud.

Most talks of card fraud seem to focus on credit card fraud. However, there is another notorious and equally dangerous kind of card fraud: debit card fraud.

Debit card fraud has proven to be prevalent in recent times. According to a report from Mercator Advisory Group, instances of debit card fraud were relatively lower in 2018, with only 17% of consumers reporting incidences of debit card fraud compared to 25% of consumers in 2020.

There’s an uptick in all kinds of credit card fraud.

This post explains why debit card users are at a higher risk of debit card fraud.

1. No built-in protection

Sometimes, debit cards lack the typical security measures that can stop fraudulent activities in their tracks. 

Some of the credit card security features are:

  • Alerts for transactions involving high sums of money
  • Flagging the transaction when there is an attempt to make a purchase at a location significantly far from where the card owner lives

Such features are normally not available for debit cards. 

Also, card companies are not as invested in the security of the card and its funds as they would be with credit cards. This is probably due to the fact that the funds accessible through debit cards belong to you. In the case of credit cards, the funds belong to the credit cards companies.    

2. Late detection

Debit card users are typically unaware they’ve fallen victim to debit card fraud until the charge shows up on their bank statement or banking platform. The late notice allows the perpetrator time to get away with the nefarious dealings.


Just as credit card frauds are a threat, the same is the case with debit cards. They should not be neglected. Thankfully, some steps can be taken to protect oneself after falling victim to any kind of fraud.

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