Ok, the unthinkable happened. You wake up one morning and get a cup of coffee on your way in to work. You swipe your debit card, there’s a pause, and DENIED flashes across the screen. Denied for a $2 coffee? How can that be? Embarrassed, you leave the coffee and slink out of the shop. You get into work and check your account online, only to find that you now have -$83.65 in your bank. You’ve been hit with debit card fraud.

Many people are surprised to learn that most debit card fraud occurs when the card owner still has the card in their possession. I certainly was surprised when I had to leave the coffee steaming on the counter and found that someone in California bought an X-Box with my money. Follow the tips in the Debit Card Fraud Prevention article to make sure this doesn’t happen to you. But if you’re like me and this has happened to you, keep reading to see how you can get your money and life back on track.

Do Some Detective Work
The best weapon you have against fraud is information. Check your bank account online to see what is going in and coming out. As soon as you see something weird, note the date it happened and the exact amount, and most importantly, where. If something was bought in New Jersey and you live in New Mexico, you might want to take a closer look.

Tell Your Bank
As soon as you think you’ve been defrauded, tell your bank. Each bank has different methods for dealing with fraud, mine had me fill out an affidavit stating that I did not authorize the transaction. This may be a long and tedious questioning process, but you have to realize the bank is going to end up paying you back your money and taking the fraud as a loss, instead of you. Therefore they want to make absolutely sure you’re telling the truth, and not just trying to get out of paying a big bill. This process can take up to 10 days while the bank researches the transaction to make sure that it was fraudulent.

Do it Fast
There is a limited amount of time between when a fraudulent transaction occurs, and when you can get reimbursed for the funds. Federal law states that a customer is liable for a maximum of $50 if they report the fraud within two business days, $500 if reported within 60 days, and unlimited amounts if reported after 60 days. Most banks, if the fraud is obvious and the customer is in good standing, will cover all funds that were stolen, but only after an investigation period.

The keys to recovering from fraud are information and communication. You have to arm yourself with knowledge not only of the comings and goings of your own accounts, but also the laws governing fraud. Once you are conscious of these things, getting in touch with your bank and staying in touch with them will expedite your recovery immensely.

Debit card fraud is sometimes lumped into the same category as credit card fraud, but the two are very different. Debit cards link directly to your money, your real cash, and recovering those funds is a long and tedious process. Here are a few simple things you can do to shield yourself from debit card fraud.

Use the internet or automated phone service to keep tabs on all your accounts.

Checking the balance in your checking account every other day will arm you with the best defense against fraud: information. The more familiar you are with the comings and goings of your account, the quicker you can spot something fishy.

Don’t use your debit card for purchases at places you don’t trust.

If you’re unsure about the security at a place of business, use your credit card or cash to pay. A credit card doesn’t suck the funds from your bank account immediately like a debit card, so it gives you some time to check and make sure everything is alright before paying off the balance. This applies for online purchases as well. Treat websites the same way you would treat brick and mortar businesses, if it looks untrustworthy, don’t trust it!

Hold on to your card

Most restaurants are fairly trustworthy places, however it is an ideal environment for a devious waiter to make off with your card number. When you give them your card to pay the check, they take it back to the register, usually out of sight, and run the transaction. This gives them plenty of time to copy your number, your signature, even the little security code on the back.

Spread out your money

Don’t link all your accounts to your debit card! If someone gets hold of the number they can completely clean you out. Instead, have a small savings account that can only be accessed by the old fashioned human teller at a bank branch. That way if your checking gets wiped out, you still have some cash in your savings. This is important, because the bank could take up to 10 days to investigate your claim, and they won’t refund you until that time is up.

While using debit cards may sound insecure and dangerous, the reality is that with a little precaution and knowledge, they can be excellent tools. Banks are starting to emplace more safeguards on debit cards, such as transaction amount limits. These limits can be lifted for certain authorized transactions if you contact your bank, but in case your card number falls into the wrong hands, the thief can only take a certain amount out in a 24 hour period.