Liberty Bank is watching debit card transactions after learning thieves skimmed off debit card numbers and produced fake cards that are being used to make purchases across the country.  "It's a huge fraud ring," said Larry Woods, president and chief executive officer of South San Francisco-based Liberty Bank.

To prevent further fraud, the bank instituted a policy of requiring customers use a PIN number in order for the debit card to be accepted.

Editor's Note:  Once  again, yet another bank is stating the fact that in order to prevent fraud a PIN number should be used.  Where's the PIN for Internet Transactions?  HomeATM will dramatically reduce fraud by allowing internet retailers to process PIN based transactions, which in turn, reduces Interchange Fees by up to 100 basis points.

He's not surprised thieves would time their attack for December. "They think people will have money in their accounts at this time of year," he said.

The bank reported the fraudulent transactions to the STAR Network, a division of Colorado-based First Data that processes its transactions. First Data spokesman Glen Turpin responded to an inquiry Thursday night, saying there has not been any unauthorized access of the STAR Network.