An Ohio University junior suspects a $1 coffee caused her major headaches last fall.
Haley Niebes, a junior studying long-term health care administration, stopped at a gas station off Route 33 and bought the coffee with her debit card before driving home to Medina. Days later, she noticed a strange $5 pending transaction on her statement. The next day, National City called to ask her about a $700 purchase in Los Angeles, Niebes said.
It's unclear exactly when someone swiped the number that controls Niebes' account. Luckily, the theft itself didn't cost her anything but time.
Consumers who report suspicious actions to their bank within 60 days generally aren't liable for stolen money. But on most debit cards, the charges remain while the bank investigates - often leaving the victim's account in limbo. Federal Reserve regulations provide better protection for credit cards and most banks reverse the charges immediately after a report of suspicious activity.
Figuring out how an individual's banking information got into the hands of criminals isn't always possible, said Laura Pratt, spokeswoman for the Ohio University Credit Union.
A thief could steal a wallet and use the card online. More sophisticated scammers attach skimmers to ATMs, which read cards during legitimate transactions. In at least one case, criminals have placed a fake ATM to gather card numbers.
Most theft, though, doesn't involve the physical credit or debit card. Groups of hackers, often operating across borders, break into computers at banks, payment processors and retailers to swipe millions of card numbers at once. The hackers often launder money through mules, who wire the cash overseas or sell the numbers in online forums.
A recent federal indictment named Albert Gonzalez, 28, of Miami as a key player in such circles. Gonzalez and two others broke into computers owned by Heartland Payment Systems of New Jersey, which processes card transactions for businesses. Gonzalez helped steal data connected to more than 130 million credit and debit cards in all, according to a news release from the U.S. Department of Justice.
When there is a large breach like that
we just reissue cards to everyone Pratt said.
JPMorgan Chase, which promotes its college checking accounts in Athens each fall, advises students to check their account balances frequently to prevent fraud, said Jeff Lyttle, a Chase spokesman. Most other banks also offer zero-liability protection for debit cards.
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Laura Service
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John Nero, photo editor
Credit card theft could leave you empty-handed
