Dealing with Internet Credit Card Fraud?

Where's My CreditCard asks: "Recently There has been a large increase in the amount of press relating to identity theft and the related crimes. I have recently been subject to several fraudulent transactions on my credit card and debit card through the internet. It has been over a month and my bank is still stringing me along saying it will take up to 10 weeks to get my money back. What have other on Slashdot done in this type of situation. What is the best way to keep things moving forward?"

Comments

Why use debit on the internet?

[Asgard]

My answer has been to never use my debit card on the internet. Why give out something that provides instant access to your bank account, when a credit card should always be sufficient? Credit cards put the primary risk on the credit issuer, not on your bank account.

Re:Why use debit on the internet?

[Tricot]

Reg E limits the liabilty that you have when using your debit card

Ahh.. but the fundamental difference between a debit and a credit card is that on a debit while the fraudulent charge is being contested, the money isn't in your account. He said the bank told him it will be up to 10 weeks before he gets his money back. I've heard of horror stories where it takes over 6 months and (cumelatively) 20 or 30 hours on hold before the money is put back in your account. I remember protesting strongly that I didn't want that Visa/MC symbol on my ATM card for that very reason, but pretty much no bank offers an ATM card without it any more. (It's too big a profit center.)

Re:Why use debit on the internet?

[MarkGriz]

"Uh... Maybe because not everybody HAS credit cards."

While that is certainly true for some, I know several people that have credit cards, yet actually prefer to use a debit card.
I can't for the life of me understand why, particularly because with a credit card
1) I keep my money for an extra 25 days or so
2) I actually EARN money using it
3) I don't have to keep track of my usage to make sure I have enough money in the bank
4) I don't have to worry about any problems giving people direct access to my bank account

It's true that many banks have gotten better about providing protection of your account when fraud occurs, but I'd rather not worry about it. Besides, #1 and #2 are certainly enough incentive to use credit over debit if you have the choice.

Don't use a debt card on the net...

[(H)elix1]

Your debt card should never be used for anything other than cash withdrawal at the ATM. I pay my credit cards off each month, so I treat it as a convenient version of my checkbook. As a credit card, I am protected from fraudulent use - a maximum $50 liability without any special 'identity protection' program. Your debt card has none of this... In practice, my wife had her credit card number nicked. She audits our account each statement and caught it right away. (One of the advantages of on-line statements, btw) The credit card company canceled the card, issued a new one, and reversed all the charges. The longer delay between the time you figure out the theft and report it, the more you will pay out of your own pocket.