Theft of Debit-Card Data From ATMs Soars. Any tips on how we can protect ourselves from this?

Tips:

1) Use a bank that will protect you from fraud (USAA saved me twice)
2) Don't use rinky-dink ATMs - Use one from a bank branch location
3) use cash for small transactions (smokes, coffee, gum, etc) and for temporary events/tourist traps (St. Patricks Day Parade)
4) Be vigilant of your account

I think more banks are starting to offer chip cards for those customers that ask for them. Chip cards (like our new GTCs) are encrypted and cannot have the data skimmed like from a magnetic strip. Additionally, I've noticed most business in the US already have the new card scanners which include a chip reader in addition to the slot for reading the magnetic strip. Given that a good collection of banks offer chip cards here, they're more secure, and that the rest of the world has been on the chip system for awhile, I don't know why they're not more prevalent in the US. It's probably because people don't bother to request a chip card (guilty) or they don't know about it. Personally I think banks could be more proactive and stop issuing magnetic strip cards and switch to only issuing chip cards, but that's not their responsibility.

Other than not using your debit card there's not much defense against these modern day techno-pirates.

You can check your on-line statements daily, which may give you the earliest possible warning of a fraudulent charge but its still after the fact.

USAA and some other large companies track spending trends and will sometimes call you directly if a large or out of trend purchase is made on a credit card but again its after the fact.