Watch Your Debit Card for Small Charges

I read a newsletter  today from a site that deals with debt. The guy who writes it is very straightforward. 

He said he saw a small charge go through on his debit card for $1.72 from a company he didn't recognize. So he googled the name and found a bunch of people talking about it. They had all been charged small amounts like that. 

He canceled his debit card because he was afraid someone had hi-jacked his account number. The small charge was just a way to see if the account was active. Probably from identity thieves who have gotten their nasty little hands on his account number and PIN. I guess the thieves figure most people won't notice a charge so small. And maybe only look at the statement they get once a month, if at all.

If you use a debit card, keep a close eye on the charges on your online account. It's also good to set email alerts to come to  you whenever you use your debit card. That's how he found out.

Credit cards are really safer than debit cards. Your credit card company will give you a lot more protection. And no one can wipe out your checking account in one big grab. 

 So if you have a debit card, set up your account so that you have an email alert every time you use it. If you see a small (or big) charge that you didn't make, change your account number or cancel the card right away.

If you think maybe someone stole your identity, you can put a fraud alert or security freeze on your credit.