Debit Card Numbers on Receipts Increase Risk for IDTheft

Consumers may think that using debit cards is a secure way to make a purchase, however, debit card numbers can be compromised leaving consumers at risk.

Customers assume that using a debit card is more secure than using a credit card. In essence, because there is a pin number and a unique set of debit card numbers, customers believe that debit cards have a two-step verification process.

A problem, however, lies with the fact that most debit cards run as credit when they are swiped at point of sale (POS) terminals. This means that the pin number authorization is deferred to a signature which the merchant may or may not verify.

Sixteen digit debit card numbers, on the surface, seem quite secure. With as many numbers, there seems to be an almost unlimited number of combinations. For a thief to guess a consumer’s debit card number correctly would be nearly impossible. Thus, fraud, considering this, seems very unlikely.

In essence, if a thief were to guess and validate 1,000 possible numbers per second, it would take 300,000 years for the thief to correctly guess a consumer’s set of debit card numbers.

But what is not known by most consumers is that debit card numbers are much less secure than they think.

How do Debit Card Numbers Work?

The way debit card numbers work is far less complicated than it seems.

The first digit is an industry identifier. The next five digits identify the bank. After that, the next six digits identify a consumers account number and the last digit is a checksum for ensuring validity.

But many banks make sure the first blocks of digits are the same for all debit card numbers in their institution. This shortcut by the banks reduces the possible number of debit card numbers by quite a bit.

Another issue comes into play with FACTA (Fair and Accurate Credit Transactions Act). Under the rules of FACTA, merchants may not print more than the last four digits of any credit card or debit card numbers on a receipt.

The Fair and Accurate Credit Transactions Act, also known as FACTA, mandates that merchants follow specific rules to help protect U.S. consumers from identity theft or credit card fraud that could occur from someone being able to piece together credit card or debit card information from a customer’s receipt.

This might seem as if it protects the consumer, however, even FACTA may prove to help thieves. The last number is a checksum number which is a number used to determine by an algorithm if the rest of the number is valid.

This reduces the number of valid possible debit card numbers significantly. At this point, there are only 1000 possible debit card numbers available a thief can use.

How Can I Protect my Debit Card Numbers?

Even though a merchant may be not violating FACTA regulations regarding receipts, consumers should be careful that they keep their receipts private.  If a merchant is breaking FACTA regulations and using the expiration date or more than the last four digits of a debit card number, the consumer may have legal recourse.

Also, consumers should not ask for ATM receipts and leave them in the trash near the bank. If a thief knows both the last digits of an account and the institution, a consumer is at high risk for fraud.

Consumers should keep track of their transactions and watch their bank statements for any possible fraudulent charges.

Free FACTA Class Action Lawsuit Investigation

If you made one or more purchases and the retailer provided you with a receipt that contained more than the last five digits of your credit or debit card number or the expiration date, you may be eligible for a free class action lawsuit investigation and to pursue compensation for these FACTA violations.

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