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Credit cards and debit cards have become the most popular payment options for Canadians. Most people today prefer paying with plastic to handing over cash and cheques. At the same time you should be aware of the potential for credit card and debit card fraud. To protect yourself, learn to recognize the various forms of card fraud and use the preventative tips we've provided below.
What are credit card and debit card fraud?
How does these types of fraud work?
What can I do to protect myself?
Where can I get help or more information?
What are credit card and debit card fraud?
Card fraud occurs when a person uses your card or card details without your knowledge or consent, typically to make purchases or apply for credit.
How do these types of fraud work?
Credit card fraud comes in many forms. Criminals can steal your actual card or obtain your credit card number. They can also produce counterfeit cards and get credit cards issued to them by making false applications using your identity. According to the RCMP, students, new Canadians and people who have experienced credit problems are often targeted by criminals who offer low-interest credit cards for a fee. People who pay the fee receive neither their card nor their money back.
Debit card fraud occurs when a criminal obtains your debit card information and Personal Identification Number (PIN). Without your PIN, the debit card is useless so if your card is stolen or duplicated, the criminal must try to find out your PIN. There have been incidents of "skimming" where consumers have provided their debit card to make a payment, and the merchant swipes the card through a hidden device to obtain the information embedded in the magnetic stripe so that a duplicate of the card can be made. At the same time, a camera records consumers entering their PIN.
What can I do to protect myself?
Always protect your Personal Identification Number (PIN)
- When selecting a PIN, always avoid the obvious - your telephone number, date of birth, etc.
- Never write down your PIN. It's best to memorize it. If you absolutely have to write your PIN down to remember it, never keep the paper in your wallet or purse and try to disguise the PIN in some way, for example, by keeping it within a record of other information.
- Never tell your PIN to anyone. Neither TDBFG nor any other legitimate business will ever ask you to disclose your PIN or password.
- When conducting transactions at an ABM or by debit, even if the device you are using has a visor, use your hand as a shield to prevent others from observing you entering your PIN.
- Change your PIN on a regular basis (i.e. monthly or quarterly) to protect yourself from possible compromises and to safeguard your accounts.
Guard your cards
- Always know the location of your debit and credit cards. Keep them in a safe place and never leave your cards in the car or unattended at work. The workplace is the number one place for thefts.
- Don't lend your cards to anyone.
- When making a purchase, keep your cards in view at all times. Watch to make sure it is not "double swiped" if the merchant swipes your card for you.
- It sounds simple enough, but don't forget to take your card after using it at an ABM or to pay for a purchase.
- Carry only the cards you need when traveling, whether locally or abroad.
- Never provide your credit card number over the phone unless you are dealing with a reputable company or you initiated the call yourself.
Guard yourself!
- Conduct your ABM and debit transactions when and where you feel most secure.
- If using drive-through ABMs, ensure that your doors are locked and all other windows are closed.
- Be conscious of anyone trying to distract you at an ABM. Finish your transaction before talking to others.
Ensure accuracy of your records, statements and activities
- Check your financial statements as soon as they arrive to ensure all transactions and charges are correct.
- Review your account statements, passbooks and online activity on a regular basis. Look for extra or missing transactions and report any discrepancies immediately.
- Review your daily withdrawal limits. If you do not need a high daily limit, reduce it. This will help to contain fraud by reducing the amount someone could access.
Report missing cards immediately
- If your card is lost, stolen or is retained by an ABM, notify your financial institution immediately.
Where can I get help or more information?
Fraud - recognize it, report it, stop it. To learn more or to report a fraud, you can contact the following:
- Phonebusters: 1-888-495-8501, www.phonebusters.com
Call Phonebusters to report fraud. They are a national anti-fraud call center operated by law enforcement agencies such as the RCMP. They collect complaints and forward them to the appropriate law enforcement agencies.
- Competition Bureau: 1-800-348-5358, www.cb-bc.gc.ca
- RCMP: www.rcmp-grc.gc.ca/scams-fraudes/index-eng.htm
The RCMP website highlights the latest consumer scams and how you can deal with them.
- Reporting Economic Crime Online: www.recol.ca
- Canadian Council of Better Business Bureaus: www.ccbbb.ca
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