It can be a shock to find a strange and unrecognised transaction on your bank statement. While this may happen for a number of reasons, there are some well-established ways of sorting out this situation quickly and without too much fuss.

Debit cards are convenient but can be open to abuse as well as a target for fraudsters. Luckily, debit card providers are aware of this issue and have procedures in place both to prevent and deal with it. You might notice these suspicious transactions because there are payments that you don’t recognise or authorise on your account. These could be things like online purchases, ATM withdrawals or overseas transfers.

What are the steps to take

If you find a suspicious or unrecognised transaction on your bank statement, it’s a good idea to look carefully at the information provided. The merchant name on the bank statement may not be the same as the trading name of the company, especially with a chain of different shops under various trading names. It’s a good idea to enter the name appearing on the bank statement into a search engine. If it’s linked to a legitimate trader, it will show up quickly.

But what if you don’t remember shopping there? Just because the merchant proves legitimate, that doesn’t mean the transaction is authorised. Someone else may have used the debit card fraudulently. If the card was genuinely not used in a way authorised by the card holder, you might be able to take advantage of the card’s zero liability guarantee.

A zero liability guarantee from the debit card provider means the card holder will not be held liable for any unauthorised transactions. However, this relies on the debit card holder telling the provider in good time that there has been an unauthorised transaction, which is why it’s a good idea to regularly read the bank statement and monitor the associated account’s balance via the bank’s online platform.

Another way suspicious transactions can be caught is through preventive measures by the bank. Banks monitor and check debit card transactions, for either those that break the card holder’s spending pattern or those typical of fraud. For example, quickly buying a large number of high-value goods. In these cases the card holder is usually contacted and asked if these transactions are genuine. In this way, the bank can begin tracking the fraudster quickly and prevent more such transactions from taking place.

Banks also look out for lower value transactions done from another country. These transactions are often less likely to trigger fraud alerts or require PINs. The scammers may use websites that sell gift cards, digital goods or charity donations to test the cards. If the transactions go through, the scammers know that the cards are active and have funds available. They may then use the cards to make larger purchases or withdraw cash from ATMs. Or your debit card number might get sold on the dark web.

Steps to take if you spot suspicious activity

If you do spot suspicious activity on your debit card, you should immediately consider doing the following:

1.  Contact your bank straight away and report the transaction. Also lock or block your card using your banks app.
2. Check any other debit card accounts you have to see if anything else has been compromised. Consider added Two Factor Authentication to your account.
3. Report the incident to the Australian Cyber Security Centre (ACSC) through their ReportCyber website.
4. Monitor your credit report for any changes or inquiries that you didn’t initiate.

Always be alert

To protect yourself from debit card fraud and suspicious activity, you should regularly check your bank statements and report any suspicious transactions to your bank. You should also use strong passwords and security features for your online banking and shopping accounts. You should never share your card details or PIN with anyone, and you should always cover the keypad when entering your PIN at a terminal. You should also be wary of phishing emails or calls that ask you to verify your card information or security codes.