Debit card fraud

My wife lost her debit card last Thursday.  I was under the impression that she did the right thing and canceled it.

She borrowed my card on Wednesday.

Last night, she said that the bank had called about fraudulent charges and that she had to deactivate both cards.  I said that I thought she had canceled the card she lost.  She said that she did not because the bank had adviser her to put a hold on it and not cancel it in case it turned up.  I found this strange.

So I had a message today about fraudulent charges on my card.  I was puzzled.  Why would they be on my card if her card was lost?  I called her up.  Now she says that she dropped my card and she thought she had told me that.  No, she had not.  Not after she dropped it.  Not after there were fraudulent charges on it.