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The Government of Canada website provides in-depth information about credit and debit fraud and tips for consumers who encounter fraud or ways to prevent fraud from occurring. Credit and debit card fraud occurs when someone steals another person's bank card information without the cardholder knowing. The only difference between credit card fraud and debit fraud is that the fraudster would need the PIN to use it for debit card fraud. The website also provides lots of information and tips on preventing fraud from occurring that can be useful for cardholders.

I chose the government website about credit and debit card fraud because the government provides information about what to do to help people if they lost their credit or debit card to avoid fraud or becoming a victim of fraud. I was aware of many tips relevant to credit and debit card fraud. In particular, I wasn't aware of online banking or shopping, and the website indicates using websites with "https" because those are the most secure websites.

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How debit card fraud happens

Debit card fraud happens when someone steals or uses without your permission your debit card or debit card information. Your information or your card is used to:

make a purchase in a store

make a purchase or transaction online

withdraw cash from an automated teller machine (ATM)

withdraw money with an in-store purchase

A person might steal your debit card information by:

swiping your debit card through a device that copies the information stored on the magnetic stripe on the back of your card

looking at your personal identification number (PIN) over your shoulder when you're using your debit card

sending you a fraudulent email asking for your banking information (also called phishing)

using a device that jams your card in an ATM. A helpful stranger then suggests that you try to put in your PIN a few times. When the card remains jammed, this person later removes your card and has your PIN

Protect yourself from debit card fraud

Debit cards issued by financial institutions have a computer chip that makes transactions more secure. The computer chip works with your PIN to make sure you give permission for each transaction. This helps protect you against fraud if someone steals your card.

There are also certain actions you may take to protect yourself from debit card fraud. Follow these tips to protect your debit card and your personal information.

Keep your PIN secret

Choose a PIN that is hard to guess. For example, avoid using your birthday, Social Insurance Number, address or telephone number as your PIN.

Be sure to keep your PIN secret:

never share your PIN with another person. Do not even share it with a family member or partner

memorize your PIN rather than writing it down. If you write it down, keep it in a safe place, away from your card or wallet

change your PIN often

Contact your financial institution and change your PIN immediately if you suspect someone knows it.

If you share your PIN with someone, you may be responsible for transactions you haven't made or approved.

Reduce your daily limit

A daily limit is the amount of money you may spend or withdraw from your account each day. It applies to both ATMs and in-store transactions.

Contact your financial institution if you think your limit is too high.

Protect your debit card and your debit card information

To better protect yourself from debit card fraud, you may also:

keep your debit card in a safe place

never lend your debit card

insert your card rather than swiping it during a purchase

hide the terminal or ATM keypad when you enter your PIN

keep your debit card in sight at all times when making a purchase

take your debit card and transaction receipt with you once you've finished a transaction

retrieve your card quickly after a transaction. Complete your transactions before answering anyone trying to get your attention

check your account statements often to make sure all transactions are correct

keep paper and electronic copies of your account statements and put them in a safe place

contact your financial institution right away if your card is lost, stolen or stuck in an ATM

If you're a victim of debit card fraud

If you're a victim of debit card fraud, take the following steps:

1. write down what happened and how you first noticed the fraud

2. contact your financial institution right away to tell them about the fraud

3. take note of whom you talked to and when you spoke to them

4. keep all documents that you think might be helpful when the police investigate the fraud

5. contact your local police service to file a complaint

6. if you believe a company (for example, your telephone company) has been hacked, contact it

Report the fraud to the Canadian Anti-Fraud Centre

The Canadian Anti-fraud Centre includes partners from the Royal Canadian Mounted Police, the Ontario Provincial Police and the Competition Bureau of Canada. It is the central repository for information about fraud.

Contact the Canadian Anti-Fraud Centre.

Related links

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debit card; fraud; personal finances; banking;

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Debit card fraud is when someone steals both your PIN and debit card or debit card information and uses it without your permission. Learn more:

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According to the Chartered Professional Accountants Canada (CPA), under section 12 (1) c of the Cost of Borrowing Regulations, credit card cardholders are liable for unauthorized transactions if found guilty of providing someone else your credit or debit card information. According to a fraud survey conducted in 2019, most cardholders don’t use their cards when purchasing items for fear of being targeted for fraud. Cardholders still have to stay vigilant, educate themselves and keep an eye on any suspicious activity with their credit card and report it as soon as possible.

I found this website useful because it mentions consumer liability and how much a cardholder is liable for unauthorized transactions. I was not aware of that, nor aware of the Cost of Borrowing Regulations in the Bank Act that lays out the rights that a cardholder has. The CPA website also provides a link to allow people like me to learn more about avoiding fraud and protecting my money.

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Report any loss or theft of a credit card right away and also take action if you see find payments on your statement that you don't recognize (Getty Images/martin-dm)
Credit card fraud is big business in Canada, and it's one that is all-too-familiar to many Canadians. For example, 86 per cent of those who responded to CPA Canada's 2019 fraud survey said they are aware of credit card fraud and almost 39 per cent refuse to use their credit card with some merchants and establishments.

Fortunately, cardholders in Canada are generally protected against liability for credit card fraud. But you still need to be vigilant: there are cases where you could run into trouble if you aren't careful.

CONSUMER LIABILITY FOR CREDIT CARD FRAUD

What do current laws and regulations have to say about liability? According to Section 12 of the Cost of Borrowing Regulations associated with the Bank Act, the maximum liability for unauthorized use of a credit card issued by a federally regulated financial institution is $50. This means that if a consumer is found liable for a transaction, they must pay the lesser of $50 and the maximum set by the credit agreement.

Above and beyond the $50 maximum liability, Visa, MasterCard and American Express offer additional protection through their zero liability policies. But it's important to remember that those policies have conditions-especially when it comes to timelines and personal identification numbers (PIN).

For example, as the Mastercard website points out, you need to report any loss or theft to your financial institution as soon as you become aware of it. You also must have used "reasonable care" in safeguarding your card. As the website explains, this includes not contributing to any unauthorized use, and safeguarding any related PIN or password.

It stands to reason that you should report any loss or theft right away. (You should also take action if you see find payments on your credit card statement that you don't recognize. See Does a credit card charge look suspicious to you? Here's what to do.)

STAY VIGILANT

You should not make it easy for your card to be stolen or used without your permission. But how can you safeguard your PIN? First, choose one that cannot be easily guessed. As the Financial Consumer Agency of Canada (FCAC) explains, "Most, if not all, credit card agreements will state that using your birthdate or telephone number is not allowed to be used for your PIN."

Also, it's also important to know that when conducting an investigation into an unauthorized transaction, the bank may ask you whether you have shared your PIN. If you have, you may be found liable for unauthorized transactions, says FCAC.

When it comes to credit card fraud, then, it's always better to be safe than sorry. While FCAC says that banks are expected to investigate all unauthorized transactions to determine, based on a balance of probabilities, whether they are a result of circumstances beyond the cardholder's control (such as shoulder-surfing, coercion, etc.), you still need to look out for yourself.

As Faisal Butt, an adviser with Edward Jones, puts it, "No one wants to become the victim of a theft. But scammers are out there, looking for their next victims.

"Protect your personal information. Don't give out information about yourself over the phone, via email, or over the internet unless you know the recipient is legitimate. Also, be mindful of the information you put on social media, which can be a treasure trove for would-be scammers."

EDUCATE YOURSELF

Canadians are increasingly worried about fraud and identity theft, according to CPA Canada's 2019 fraud survey. To find out more about how to safeguard yourself, see Protecting you and your money: A guide to avoiding identity theft and fraud.

CREDIT CARD FRAUD: WHO IS LIABLE?

When a fraudulent credit card transaction occurs, it's important to note that liability falls on the bank/issuer-not the card company.

Visa, Mastercard and other credit card companies provide a network and payment solution. (For example, Visa facilitates electronic funds transfers throughout the world, most commonly via Visa-branded credit cards, debit cards and so on.) Each time the card is swiped, the merchant pays a percentage. However, this might also be built into the price charged to the consumer, says one industry insider who prefers to remain anonymous.

The banks, on the other hand, issue the cards and make money on the interest on the balance outstanding, says the insider. "However, the risk is that the consumer doesn't pay," he adds.

"However, the risk is that the consumer doesn't pay," he says.

This is a risk that is seems to be taken into account when decisions are made by the banks. As Jennifer Fiddian-Green, CPA, who leads the national forensic and dispute resolution advisory practice at Grant Thornton, puts it, banks are interested in supporting customers (primarily individuals) to trust and use credit and payment card systems. "So when decisions are made about whether or not to cover the costs of fraud (e.g., to make the consumer whole), we often see that individuals are supported as long as they have executed on the basics of taking care of their cards and data."

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Credit card fraud: you're protected-most of the time

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Report any loss or theft of a credit card right away and also take action if you see find payments on your statement that you don't recognize (Getty Images/martin-dm) Credit card fraud is big business in Canada, and it's one that is all-too-familiar to many Canadians.

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According to the Chartered Professional Accountants of Canada, in 2019, one in five people experienced credit card fraud online, over the phone or in person. Fraudsters use various methods to obtain debit or credit card information. A new way a fraudster can gain your information is by SIM swapping. SIM refers to “Subscriber Identity Module,” a small card found in cellphones. Fraudsters use the information to collect important information about the client, such as their bank account information, and use that to hack debit or credit cards. The website also provides multiple methods to prevent fraud from occurring. Even if you run into debit or credit fraud, the website also offers numerous ways to report it to the appropriate authorities.

I chose this article because it would benefit cardholders about SIM swapping and how it is essential to discard important documents with any bank information; that way, people don’t have access to your bank information and steal it.

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That's Life

You work hard for your money. The last thing you want is to find out you've been the victim of debit or credit card fraud, but that's the reality for some Canadians. In fact, in their 2019 fraud survey, the Chartered Professional Accountants of Canada found that almost one in five Canadians surveyed had experienced credit card fraud. ¹ To help arm you against debit and credit card fraud, we've rounded up some frequently asked questions on the topic.

How does debit and credit card fraud happen?

From phishing emails to fake phone calls to skimming cards, there's more than one way a fraudster can commit debit or credit card fraud. In general, however, debit and credit card fraud occurs when your card or card information is stolen and used to make payments that you didn't authorize. Although new tech, like chip and tap, help to keep our financial details more secure, fraudsters are constantly coming up with new scams that you should be aware of, such as SIM swapping, which could give them access to your money and more.

What is SIM swapping?

A SIM (Subscriber Identity Module) card is the small removable chip found in your mobile phone. It identifies you as you, and gives you access to your phone company's network. ²

But how can this be used for fraud? By collecting your name, phone number and other personal details (through phishing emails and other methods), fraudsters will reach out to your cellphone provider claiming to be you and request a new SIM card. With the new SIM card, the fraudster can gain access to the various services and information stored on your phone, including emails, text messages and even your bank accounts. Often, a victim of SIM swapping won't realize that they've been targeted until they are unable to send a text or make a call. ²

How can I prevent debit and credit card fraud?

It's vital that you do all you can to keep your information safe. When it comes to your credit and debit details, you can help protect these by:

How do I report debit and credit card fraud?

If you have lost your card or suspect that you've been targeted by debit or credit card fraud, here's what you'll want to do: 3,4

In the case of fraud specifically, you'll also want to: 3,4

How am I covered for debit and credit card fraud?

If someone has used your debit or credit card without your authorization, your card issuer will typically reimburse you for the full amount lost as long as you took reasonable care to keep both your account and PIN safe. ⁵ For example, Visa, MasterCard and American Express all have zero-liability policies when it comes to unauthorized transactions, which means you're not responsible for fraudulent purchases made on a credit card issued by your bank. ⁶

Your standard home policy also usually includes some coverage if you are legally required to pay charges made to your credit or debit card due to theft or unauthorized use. This coverage will likely be limited to a set amount and will not apply if the charges were made by someone in your household or by someone with whom you have entrusted your card.

Be sure to review your home policy in detail to see if you have this coverage and to learn when it applies and to what limit. Also, get familiar with the terms, conditions and policies of your debit or credit card to understand your rights and responsibilities.

Like identity theft, when it comes to debit and credit card fraud, the best strategy to protect yourself from ever falling victim is to take preventative steps. By being proactive, you can help make sure your information and money stays safe and secure.

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4 things you need to know about debit and credit card fraud

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You work hard for your money. The last thing you want is to find out you've been the victim of debit or credit card fraud, but that's the reality for some Canadians.

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As the number of credit and debit card consumers increases, the government and bank institutions have to keep up with ways to resolve it. Many people also believed that online banking or paying via tap with a physical card or cell phone helps fraudsters commit fraud. Studies have shown that credit card fraud occurs more often than debit card fraud. Credit card companies also take a serious approach towards fraud and continuously updating their security systems and technology.

I chose this website because it gives an insight into the statistics of credit and debit fraud and why people are hesitant about using their credit/debit cards online. Also, it provides additional tips to reduce the risk of encountering fraud.

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Canadians charged $4.9-billion to their Visa and Mastercard credit cards in 2017, an increase of 122 per cent from 10 years earlier, according to the Canadian Bankers Association ¹ (CBA). The number of cards in circulation was up 16 per cent to 73.4 million and the number of merchant outlets accepting the two cards increased by 46 per cent to 1.7 million.

But in spite of the widespread use of credit cards, and the increasing popularity of smart phone apps such as Apple Pay, Samsung Pay and Android Pay linked to credit cards, many Canadians are still worried about the security of these technologies.

The latest fraud survey ² by CPA Canada found that 68 per cent of respondents believe electronic payment methods, such as tapping debit and credit cards or using smartphone apps, facilitate fraudulent activities. Forty per cent feel uncomfortable buying online, and 35 per cent report being a victim of financial fraud at some point in their lives, with credit card fraud (75 per cent) and debit card fraud (25 per cent) being the top two types of fraud listed.

Banks and credit card companies take credit card fraud very seriously, and have highly sophisticated security systems and teams of fraud experts in place to monitor transactions, protect customers and prevent and detect credit card fraud.

Security measures are constantly being enhanced and technology is being upgraded to prevent fraud, including the use of chip technology for debit and credit cards. These cards use a technology called "cryptography" that allows the card and the store terminal to communicate with each other during the transaction and carry out security checks to ensure the card is valid.

The microchip is state-of-the-art in payment card technology and is extremely difficult to duplicate. The transition to chip-based technology rolled out successfully and, in Canada, all debit cards and ABMs and most store terminals at retailers are now capable of chip transactions.

While Canada's banks have sophisticated security systems in place to prevent credit and debit card fraud, you can also minimize risk and protect yourself by:

Protecting your PIN

Inserting your card first instead of swiping when making a purchase. If the store terminal isn't chip capable, it will prompt you to swipe

Never lending your card or disclosing your PIN to anyone else

Memorizing your PIN; don't write it down

Making sure your PIN cannot be easily detected if your card is lost or stolen

Regularly reviewing your transaction history online or on your bank statements and reporting anything unusual to your financial institution immediately

Changing your PIN periodically

Interac ³ offers the following tips to help merchants protect themselves against debit card fraud:

The customer is responsible for inserting their debit card into the terminal and entering their PIN

The customer is responsible for making an Interac Flash transaction - the merchant can verbally assist by directing them to hold their card or mobile phone above the PIN pad

Treat your PIN pads like cash; keep them out of sight when not in use

Check your PIN pads and Automated Banking Machines regularly for anything unusual

Lock-up PIN pads at closing

Include log-in sheets for accountability of PIN pad in cash open and close procedures

Consider adding surveillance cameras

Know your employees - exercise due diligence when hiring and check references

Remind your customers to protect their PIN when entering it at every opportunity and take their card when the transaction is complete

Talk to your payment service provider about other steps you can take to prevent fraud from happening at your location.

Disclaimers

Please note the following with regard to certain products which may be discussed in connection with these materials:

For all HSBC products, certain terms and restrictions may apply and the products are offered subject to applicable terms and conditions.

Certain of the products and services offered by HSBC and its subsidiaries and affiliates are subject to credit adjudication and approval. Not all products and services offered by the HSBC Group are available in all jurisdictions in which the HSBC Group operates.

Unless governing law permits otherwise, you must contact an HSBC Group member in your home jurisdiction if you wish to use HSBC Group services in effecting a transaction in any investment or product mentioned in this communication.

Issued by HSBC Bank Canada ("HSBC")

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Debit Card and Credit Card Fraud Awareness | HSBC Canada

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Canadians charged $4.9-billion to their Visa and Mastercard credit cards in 2017, an increase of 122 per cent from 10 years earlier, according to the Canadian Bankers Association 1 (CBA). The number of cards in circulation was up 16 per cent to 73.4 million and the number of merchant outlets accepting the two cards increased by 46 per cent to 1.7 million.

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I chose this image to compare the statistics of credit/debit card fraud, cheque fraud, and other types of fraud. Based on the line graph, credit and debit fraud was the least common type of fraud between 1977-2004, but continues to increase over the years to this day. With newer technologies being created compared to the 2000s, fraudsters are becoming more creative, and banks and government agencies have to update their security systems consistently

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View the most recent version.

Archived Content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please " contact us" to request a format other than those available.

Figure 2. Police-reported data suggest rate of cheque fraud falling while credit and debit card and other fraud have increased slowly in recent years
Data source: Statistics Canada, Canadian Centre for Justice Statistics, Uniform Crime Reporting Survey.

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A Feasibility Report on Improving the Measurement of Fraud in Canada: Figure 2. Police-reported data suggest rate of cheque fraud falling while credit card and other fraud have increased slowly in recent years

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View the most recent version. Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please " contact us" to request a format other than those available.

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This image represents all the information held in a credit or debit card chip that is used daily and is protected by a lock and key (PIN). If the fraudster gets a hold of the “key,” they’d be able to unlock all the stored data on the card chip. It is important to keep that type of information private to avoid credit or debit fraud.

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This video explains that bank institutions collect information about your purchases, such as purchase types, how often and how much. They can start to form a profile on the cardholder that consists of how much is spent, how often and spending habits. If the company notices unusual behaviour, they have the technological measures to be able to identify fraud. Credit card companies have better detection software to identify fraud than the eyes of the cardholder.

I chose this video as it pertains to information about how a credit or debit card company uses the card chip's information to build a profile and use that profile to identify any unusual activity that could be viewed as fraud and report it.

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How Does Credit Card Fraud Protection Work?

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This video breaks down credit and debit card fraud in more straightforward terms and provides a scenario for each type used to commit fraud. The videos also offer helpful tips for cardholders to prevent being a victim of fraud. It offers excellent tips to keep your bank information private from the public.

I chose this video because, similar to websites, it is important to keep cardholders alert of the different methods that fraudsters use to commit fraud. It is also interesting to learn that 15 million Canadians were impacted by fraud in 2009, resulting in a loss of over 600 million dollars.

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Many websites and videos focus on the cardholder's responsibility to take the best precautions to avoid being a target of credit or debit card fraud. This video shows another angle of credit and debit card fraud. It shows the side when a fraudster attempts to use the fraudulent card at a retail store. Employees need to keep an eye out for any suspicious behaviours a customer is exhibiting while buying a product.

I chose this video because the internet provides many examples and resources for cardholders to avoid becoming a target of fraud. Still, this video explicitly portrays the importance of an employee's role in identifying credit or debit card fraud. If an employee is not vigilant when customers pay, they aided a fraudster in committing fraud and allowed someone to become a victim of credit card fraud.

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Youve probably heard of debit and credit card fraud. But have you heard how to beat it? Watch this video by the Bank of Canada and its partners to see how you can protect your credit and debit cards. Be sure to check out more videos on our channel.

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The video talks about a significant real-life case of debit card fraud  that turned international in Quebec. The video explained that fraudsters would modify the debit card machines by altering them and adding a Bluetooth chip at night and eventually switch them back the next day. The fraudsters made fake credit and debit cards with the information stolen and stole millions of dollars weekly.

I chose this video because it shows how significant a credit or debit card fraud case could get and how much financial damage it could cause. It is important to report fraud as soon as you recognize it to stop fraudsters because the longer it takes to report, the more money a fraudster could obtain, and cause more financial damages for other people. Fraudsters are also cautious and smart to stay undetected.

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Police in Quebec have arrested 45 people and seized more than 12,000 counterfeit bank cards in raids on an international fraud ring

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Welcome to my Padlet! As you read through, you will learn about what credit and debit card fraud is with the various resources of websites and videos provided. You will also learn about a real-life debit card fraud case that occurred in Quebec that turned internationally. By the end of reading through my Padlet, you will learn about useful tips to keep you safe from credit and debit card fraud in the future. I hope you enjoy learning about credit and debit fraud.