Smart Practices for Using Credit, Debit Cards, and EBT Cards
By: Julie Beck
The Growing Threat of Payment and EBT Fraud
Payment card and Electronic Benefit Transfer (EBT) fraud are growing concerns across the nation. Criminals use increasingly sophisticated tactics, such as card skimmers, hidden cameras, and Bluetooth-enabled readers, to steal card numbers, personal identification numbers (PINs), and account details directly from everyday payment terminals.
According to law enforcement and financial investigators, millions of dollars are stolen each year through these methods. The impact is far-reaching. While banks and retailers absorb some of the losses, everyday consumers, including families relying on EBT cards for groceries or fuel, often suffer the greatest harm. Once stolen, those funds are rarely recoverable, leaving victims to navigate financial hardship and frustration.
These crimes also impact survivors of domestic violence and cyberstalking. Abusers often attempt to monitor or control financial accounts as a form of coercion, tracking purchases or draining resources to maintain power. Practicing strong payment security, using safer payment methods, avoiding PIN entry, and monitoring account activity can help survivors maintain independence, privacy, and safety.
Protecting your payment information is not just about avoiding personal inconvenience. It’s about stopping fraudsters and organized crime groups that exploit vulnerable populations. A few careful habits at the pump or checkout counter can dramatically reduce your risk. The following recommendations were provided by the US Secret Service at the Cyber Fraud Task Force in Atlanta, Georgia.
Tap to Pay: The Safest Choice
Whenever possible, use tap-to-pay options at gas pumps or checkout counters. This contactless method is the most secure way to pay because it transmits encrypted, one-time transaction codes instead of your actual card number. Even if a skimmer is present, it cannot capture usable payment data.
Mobile wallets like Apple Pay, Google Pay, or Samsung Pay enhance this protection by tokenizing your card number, substituting it with a temporary code unique to that transaction. This means your real card number is never exposed—even to the merchant.
Safer Use of Traditional Card Readers
If tap-to-pay is not an option, your next safest method is to use a card with an EMV chip rather than one that only has a magnetic stripe. EMV (Europay, MasterCard, and Visa) chips are designed with dynamic encryption technology that generates a unique transaction code for every purchase. This reduces the risk that criminals can clone or reuse your card information, even if a skimmer is attached.
When you insert a chip card, the chip communicates directly with the payment terminal to verify authenticity, offering far greater protection than swiping a magnetic stripe. These EMV chip readers are usually horizontal, meaning you insert your card straight in with the chip facing up. This design tends to be more secure because it is harder for criminals to attach skimming devices without being noticed. If a reader only accepts swipes, consider moving to another pump or paying inside at a chip-enabled terminal for stronger security.
Avoid vertical or downward-facing card readers whenever possible. These designs are more vulnerable because skimming devices can be attached more easily and blend in with the reader’s shape. Many of these terminals still rely on magnetic stripe technology, which is less secure and can be copied by skimmers with minimal effort. If you have no other choice, use a pump or terminal located near the store entrance or within view of security cameras, where criminals are less likely to attempt tampering.
Protect Your PIN and Run as Credit When Possible
Never enter your PIN at a gas pump or point-of-sale terminal. Whenever possible, choose the “Run as Credit” option. By keeping your PIN private, you help stop it from being sent out and make direct debit theft far less likely. If a criminal manages to intercept your PIN, they can use it to make unauthorized withdrawals or purchases, exposing you to even greater monetary loss. Because PINs are meant to remain private, a compromised PIN can also make it more difficult to dispute fraudulent transactions with your bank.
Skimming operations often include a hidden pinhole camera or a keypad overlay designed to record your keystrokes. If thieves capture your PIN, they can withdraw cash directly from your bank account. Using the credit option keeps that information private and gives you stronger protection and dispute rights through your card issuer.
Disputing a credit card charge is much easier and offers stronger protection than disputing a debit card transaction with your bank. Credit cards are governed by federal consumer protection laws, such as the Fair Credit Billing Act, which allows you to challenge fraudulent or incorrect charges before paying them. As a result, the amount in question may be held back until the matter has been reviewed. On the other hand, debit card fraud affects your bank account immediately, and getting your money back can be slower because the funds have already been taken out. Banks may also have shorter reporting windows and fewer protections under the Electronic Fund Transfer Act. Using a credit card whenever possible helps minimize the risk of prolonged monetary loss and provides a smoother dispute process.
Choose a Strong, Secure PIN
Even in situations where you must use your PIN, such as at an in-person bank or verified retail terminal, it is critical to use one that cannot be easily guessed. Avoid simple or predictable PINs such as your birthday, address numbers, repeating digits like 1111 or 2222, or parts of your phone number. These combinations are among the first patterns criminals try when attempting to access accounts.
A secure PIN should be unique, random, and not reused across multiple cards or accounts. If your card issuer allows, consider changing your PIN regularly. Treat it like a password, something only you should know and never share or write down where others might find it.
When entering your PIN at any payment terminal, always make sure no one nearby can see the keypad. Criminals sometimes attempt “shoulder surfing,” a technique where they watch or record you entering your PIN—either directly over your shoulder or from a distance using a phone or small camera. To protect yourself, shield the keypad with your hand or body while you type, and be aware of anyone standing unusually close or appearing to watch your movements. Even in safe places, a few seconds of awareness can prevent your PIN from being exposed and used for fraudulent transactions.
Spotting Skimmers at Point-of-Sale Checkouts
The same dangers can appear inside retail stores. The U.S. Secret Service recommends taking a quick visual assessment before using any point-of-sale (POS) terminal.
Examine the keypad’s height and alignment closely. If it seems raised or the depth is different than usual, there could be an overlay on top. Pay attention to keypad backlighting as well. If it appears dimmer or uneven, that is another sign of an overlay blocking the normal light. Also, check for mismatched colors, textures, or added attachments around the card slot or keypad. When in doubt, ask to use a different terminal or pay the cashier directly.
Common Red Flags at Any Payment Terminal
Whether you are pumping gas or checking out at a store, take a few seconds to inspect the device. Warning signs include:
- Loose or misaligned card readers
- Extra plastic layers or stickers that do not match
- Tiny holes above or near the keypad, which could indicate a hidden camera
- Missing security seals or broken tamper tape
If something feels off, trust your instincts. Switch to a different machine, and if you can, notify the attendant to help safeguard others, too.
Reporting Suspicious Devices
If you notice a skimmer, hidden camera, or overlay device, leave it alone. Do not try to remove it. Criminals sometimes monitor their equipment and may be nearby. Instead, alert the store or station manager and contact the proper authorities.
You can report suspicious activity to:
- The National Cyber-Forensics and Training Alliance (NCFTA) at www.ncfta.net
- The U.S. Secret Service which investigates financial crimes and skimming operations.
- Your local law enforcement agency
These reports help law enforcement identify trends and remove dangerous devices before they impact more people.
Record Keeping
Always keep your receipts and regularly verify your transactions with your bank or card provider. Comparing your receipts to your online or printed statements helps you spot unauthorized or duplicate charges quickly, allowing you to report them before they escalate into larger losses. Reconciling your account on a routine basis—whether weekly or monthly—also helps you stay aware of your spending patterns and detect any small, suspicious transactions that might indicate skimming or card cloning activity. Promptly disputing irregular charges with your bank or card issuer can help minimize financial damage and strengthen your fraud protection claim.
Staying Vigilant
Payment card and EBT fraud are not isolated crimes. They are part of a larger web of organized financial exploitation that affects communities across the country. By being aware, inspecting payment devices, and reporting suspicious activity, you play an important role in preventing theft and protecting yourself and others. Each of these small actions helps close the gap criminals rely on, making transactions safer for everyone.