BEWARE: Lost Life Savings After Suspected Debit Card Scam

Danielle Antosz Tue, November 19, 2024  Moneywise

This Long Island man lost his life savings after suspected debit card scam — and got no reimbursement. Here’s why

While running errands in New York last year, Grant Holihan of Long Island received a call from Chase Bank asking him to confirm a recent purchase in Las Vegas. But Holihan, 27, claimed to have never been to Las Vegas. He suspected his debit account and PIN were skimmed at an ATM near his construction job site.

According to Holihan, Chase agreed to close the account — but then more charges followed. In just under an hour, more than $7,000 was drained from his bank account in separate transactions on the other side of the country. Ultimately, his entire life savings was stolen in less than a day.

Now, Holihan says Chase is still refusing to refund his money.

“I’ve never given my PIN out," Holihan told CBS New York. “They still deny my claim, and it's been over a year later, and I still haven't seen my money."

With no resolution in sight, it’s important to understand how this was able to happen and what can be done to avoid a similar financial loss.

How Does Debit Skimming Work?

In debit card skimming, fraudsters secretly install devices on ATMs or payment terminals to steal card details and PIN information. The skimmers capture data while a hidden camera or keypad overlay records the user’s PIN. In most cases, these devices are difficult for people to see because they look like legitimate card readers.

Holihan suspects that is exactly what happened to him.

"This customer's claim was denied because the charges were authorized with their PIN and verified via phone call," JPMorganChase told CBS News New York.

Unlike credit card skimming, where thieves steal credit card numbers, debit card fraud doesn't fall under the Truth in Lending Act, which offers more consumer protections. While speaking with CBS reporter Elle McLogan, National Consumer Law Center senior attorney Carla Sanchez-Adams shared how that impacts consumers.

https://news.yahoo.com/news/finance/news/long-island-man-lost-life-110300580.html