Fraud Tip of the Day - May 11

Cab Driver Debit Card Scams

When you hand your cab driver your debit card, don't take your eyes off of it for a second or you could become a victim of of this simple debit card switcheroo scam!

Cab drivers have been able to allow their passengers to pay for their rides electronically for some time. It's convenient for both cab driver and their fares. Unfortunately, some cab drivers have stumbled upon a simple scheme that allows them to gain access to both your bank PIN number and debit card.

Here's how this scam works: when the cab arrives at the destination you requested and you hand them your debit card, the cab driver will ask you to enter your PIN number into some sort of PIN-pad device. Once you've been told that the cab fare has been paid, the cabbie will hand your debit card back to you and you're on your way. This is usually done quickly and often inside a cab with poor lighting. This allows the cab driver to trick you fairly easily. The PIN entry pad will not transmit your PIN to the bank to verify your credentials and debit your account. The device will, if this is a crooked cab driver, record your PIN for later use. The card handed back to you will not be the one you gave them. Now the cab driver has both your PIN number and your credit card and within moments they'll hit an ATM and make the largest withdrawl your account will allow.

Victims are chosen carefully

You may wonder how cab drivers can get away with this and the answer is very simple. They choose their victims carefully and count on poor lighting. Many victims are selected for their degree of inebriation after being picked up near night clubs after dark. Drunks are easy to fool and a may not discover the theft or unauthorized use of their debit card until morning.

Report the crime immediately!

We advise everyone to be on the watch for this scam and enourage everyone to pay their cab fares with cash if possible. If you must pay by debit card, watch every move the cab driver makes. When the card is handed back, check carefully to make sure it's yours. Remember to ask for a receipt when departing the cab. This will help ensure your account has been charged appropriately. It's no guarantee, but if the cabbie can't produce a receipt this is cause for suspicion.

If your debit card and/or PIN number has been stolen, report it immediately. Your liability depends on how soon your report the theft. If you are able to report it before your your card is used, you won't lose a penny. If your card is used before you report, how much you lose will depend on how long it takes you to report the loss of your debit card. If you report the theft within 48 hours, your liability is limited to $50. After that you can expect to lose as much as $500. If you wait more than 60 days, the amount you could lose is unlimited!

If you've reported the loss of your card to the bank, you can't be held responsible for additional withdrawls from your account.