While using a debit card can seem like a good way to avoid spending money you don’t have, there are some security issues with using a debit card that don’t affect credit cards.

Remember that the money from a debit card comes directly out of your bank account while the money from a credit card comes from the bank.  That difference may not seem significant, but the bank is not allowed to take money from you when fraud first occurs to their funds.  A charge on a credit card starts off as a loan from the bank to the merchant wherein the bank pays the merchant for the goods or services you purchased, and later collects the funds from you.  For that reason, fraudulent use of a credit card is considered to be fraudulent use of the bank’s funds, so they are not allowed to take your money.  The exception is that you could ultimately be liable for $50 if the credit card is used prior to notification to the bank.  You will not be charged if the bank is notified about possible fraudulent use prior to any fraudulent charges. 

On the other hand, when fraud occurs to your funds, i.e. with a debit card, the bank will not reimburse you right away, first it investigates.  The only time you are not liable is when you notify the bank prior to any charges on your debit card.  However, that does not mean the bank gives you the money back right away.  It could take weeks or months before their investigation is sufficiently complete to reimburse you for the fraud.  Unlike with a credit card, there is no limit to the amount you could be held liable for between the time your card is used fraudulently and the time you notify the bank of fraudulent use. 

Now that we discussed the issue as to why a debit card places you more at risk than a credit card, below are five common ways that thieves can steal your debit card information:

1. Bank ATMs – Thieves can attach a skimming device over the bank ATM’s card slot and steal numbers and PINs.  Your best bet in using an ATM is in a very public place so that thieves would not have the time to set up the device, or in a secure place such as a locked indoor bank location.  Outdoor ATMs in low-traffic areas are the worst bet
2. Private ATMs – these are even worse than bank ATMs.  The devices often have less security and the location is such that supervision is usually by a near minimum wage employee.  Under these conditions, it is easy to attach skimming devices.  Avoid non-bank ATMs like the plague! 
3. Gas stations – The fact that some gas stations have low supervision and many different pumps makes it relatively easy for thieves to attach skimming devices.
4. The Internet – From malware on your own computer to wireless eavesdroppers to an unscrupulous employee, there are many points along the way where your information can be hijacked.
5. Restaurants – Servers take the card and run the transaction out of sight, increasing the chances that the information can be copied down and used later.  Some restaurants also save customer credit information for repeat take-out orders.  This data is rarely as secure as it should be.

The bottom line is to use a credit card and minimize or eliminate running a balance, or pick and choose the situations where you use your debit card with the potential likelihood of theft in mind.

Reference:
http://www.bankrate.com/finance/checking/risky-places