I have had the same debit card for several years, and I've never had a problem with any fraudulent charges until yesterday. I am careful about where I use my debit card number online, and I am fairly vigilant about computer security, although certainly not perfect.
Yesterday, I checked my bank statement, and saw two strange charges, one in Wyoming and one in California, both of which are literally half a continent away from me. The charge in Wyoming was immediately refunded, but the other wasn't, so I called my bank to find out what was going on. The person with whom I spoke told me that the card had been used about 30 minutes ago, and that her system indicated it had been used in California physically. This in spite of the fact that the thing was in my wallet at the start of the day, and right before I called the bank. I did my due diligence with respect to the card, and the fraudulent charge, but I am curious: how could this have happened? I understanding stealing someone's card information and using it, but running a charge such that the bank's system 'thinks' it was physically swiped? Could anyone give some insight into what's behind this? Thank you.
Addendum: the card does not have a chip, and I didn't ask if the Wyoming charge was also supposedly made with the physical card.
EDIT: I should have stated originally, I have already canceled the card. Thanks to all who have replied so far.