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Hello everyone and welcome to my Padlet wall. On this wall you will begin to learn more about credit/debit card fraud. We're going to explore what credit/debit card fraud truly is, how it happens to many people and most importantly how we can prevent this from happening to us.

With that being said- feel free to start exploring this page to learn more!

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This video created by the Bank of Canada is a very interesting video on what debit card fraud is and how it can happen to anyone. Throughout the video there were a couple of scenarios that displayed two different and popular ways in which this type of fraud can happen. The first scenario displayed someone who bought something at a store and the cashier swiped their card information with their own device. The second scenario was a women who was using an ATM machine and someone had put a device over the card slot, which took this women information. Both of these scenarios are prime examples of how debit card fraud can happen.

I chose this video, as it gives multiple examples of how debit card fraud can happen, what it is and lastly ways in which not only a person can protect themselves from this happening, but as well as how a business/company can help prevent this from happening to their customers. I found this video to very interesting and one that I wanted to chose right away as a lot of videos/websites describe how an individual can protect themselves from his happening- which is great, but this video described how companies can help prevent this from happening as well. They mentioned that business owners should really get to know who their hiring, should have good overall business practices and do routine checks on their debit/credit card machine, etc.

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The image attached below displays credit card fraud in Canada, in the year ending December 2010. Although this image displays statistics from years ago, I believe its still holds an accurate representation of how common and how serious credit card fraud truly is. It shows that 366 million dollars were lost in Canada due to credit card fraud and then displays more in-depth statistics of what category these frauds were apart of.

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The website listed below from the Canadian Bankers Association explains what credit card fraud is, how your bank can assist you if this were to happened to you, explaining new chip-based technology and lastly how you can personally prevent this type of fraud from happening to you.

The article explains how credit card fraud can happen in several ways. Someone could gain access to your card information, tamper with company payment devices or even through internet/over the phone purchases. Luckily, in the article its noted that banks can detect when abnormal purchases are happening on your card and they notify you. It also states that chip-based technology is recommended as it doesn't require you to enter your pin code- this has reduced 76% of fraud in Canada since 2008!

I chose this article as its from a reliable source and provides an explanation of what credit card fraud is, how your bank can help you, as well as an explanation of why chip-based technology is very beneficial in todays society. This article was different from others as it described why chip technology and 'tap'/ contactless payment cards are beneficial. I personally have to insert my card each time I purchase something, but after reading this article I think I might activate 'tap' on my cards.

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Learn how to protect yourself from credit card fraud

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Examples of credit card fraud and tips to avoid becoming a victim.

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The video below is titled 'Secrets of a credit card thief' and is a video about a previous credit card thief who took part in credit card fraud online. In the video, he talks about the methods he used to commit fraud and how he obtained large amounts of money through fraud.

I chose to post this video as you don't see first hand from someone who was previously committing fraud very often. Theres many video's on the internet describing what credit/debit card fraud is and how to prevent it from happening to you, but rarely do we see anything from the person thats actually committing these crimes themselves. It's interesting to see how this individual who used to commit credit card fraud thought while committing these crimes, how he would gain access to these accounts and even what platforms he would use. It allows people to know what these people who commit these crimes think and most importantly, how to overall protect ourselves.

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This image was created and uploaded by the Agency of Canada on how to help prevent debit card fraud. Each of the five tips they have listed are very important in protecting your debit card information- these tips could truly save you from being a victim of this type of fraud.

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Throughout this video, 'Common Cents Mike' describes his tips for preventing credit/debit card fraud and where its very common to happen. He notes that in the video, unfortunately sometimes no matter how careful you are, theres still a chance you can become a victim of credit/debit card fraud, but it does more commonly happen in specific ways/places.

He notes that a lot of these types of frauds happen through online purchases. People purchase items off of cheap/unknown websites and/or tend to save their card information to these websites. He notes that a lot of credit/debit card fraud happens this way and a tip to help prevent this from happening is opening a chequing account with your bank thats specifically for online purchases. Therefore when you want to purchase something online, get the total of the purchase and transfer that exact amount of money into your online chequing account. This will ensure that if anyone gains access to your card information there will be no money to take from the account.
Another place in which Mike states that these frauds commonly happen at is gas stations, through devices put over the card slot that takes peoples card information. He explains that its best to go into the station to pay, rather at the pump.

I chose this video because its always nice to hear directly from people who have either experienced credit/debit card fraud or those who know a lot about this type of fraud. This video explained what to look out for and how to protect yourself from this happening to you.

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How to deal with credit card and debit card fraud

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The website listed below is through the Government of Canada. The information on this website is very reliable and this is part of the reason as to why I chose it. This website covers all the basic information one would need to understand if they were a victim of credit card fraud. The website covers how this type of fraud happens, how to prevent it from happening, steps to take if you lost your credit card and lastly what to do if you are a victim of credit card fraud.

I found this website to have very relevant and interesting information as it explains different things people should look out for online, by telephone, and at-home that could be a scam in the making. For example, the article explains that reliable credit card companies don't ask for personal information over the phone, therefore avoid doing anything in relation to just that.

I chose this article because I believe that it gives an individual all the information they would need to have if their looking to into what credit card fraud is, how to protect themselves and what to do if this were to happen to them, all from a very reliable source- The Government of Canada.

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Recognizing, preventing and reporting credit card fraud.

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This website offers the statistics of credit card fraud in Canada.

I found this article to be very interesting as it describes the different statistics revolving credit card fraud throughout Canada. After looking at this article, I was shocked at the amount of 800 million dollars worth of financial loss in Canada due to credit card fraud. This goes to show how easily this can happen to just about anyone and how important it is to protect your card information. In the article its also noted that the average amount stolen on credit card is around $300- this is why its very important to check your statements each month, protect your card information and only use your card at places you know are reliable.

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Many Canadians prefer using a credit card over cash or debit.

Credit cards offer rewards and are a useful tool to build your credit score. However, credit card fraud is still a large risk when using your credit card.

Here are the credit card fraud stats for 2021 - compiled by the Simple Rate research team.

General stats on credit card usage in Canada

75 million

Number of credit cards in circulation in Canada

89%

of Canadians who reported to have at least one credit card

2

Average number of credit cards carried by Canadians

$2,627

The average credit card debt in Canada

52%

of Canadians pay back their card in full every month

15%

of Canadians have a credit card spending limit under $2,000

44%

of Canadians have a credit card spending limit between $2,000 and $10,000

41%

of Canadians have a credit card spending limit over $10,000

Credit card fraud statistics in Canada

$800 million

The total financial loss from credit fraud in Canada

71%

Increase in the number of accounts who have reported at least one case of credit card fraud. This number is 2x higher than that of identity theft in Canada.

$300

The median amount stolen via credit card fraud

19%

of Canadians who were a target of credit card fraud were aware that they were a victim

39%

of Canadians surveyed have admitted to not using their credit card in certain cases because they were worried about their account being compromised

58%

of Canadians surveyed reported they cover their pinpad when entering their credit card pin at a merchant

86%

of people review their transactions every month
NOTES:
Average credit card debt in Canada is $2,627. 52% of Canadians pay back their card in full every month.

There are 75 million credit cards in circulation in Canada. The average Canadian carries two credit cards. 89% of Canadians have reported to have at least one credit card. 82% of people have reported that they choose their cards based on rewards offered.

Only 8% of Canadians surveyed claimed they didn't know anything about the rewards programs their cards offered.

15% of Canadians have a credit card spending limit under $2,000. 44% have a credit card spending limit between $2,000 and $10,000. 41% have a credit card spending limit over $10,000.

According to The Canadian Bankers Association, the total financial loss from credit fraud is a staggering $800 million. Over the last decade, the number of accounts who have reported at least one case of credit card fraud has increased by 71%. This number constitutes 2x that of identity theft.

The median amount stolen via credit card debt was $300.

Shockingly, only 19% of Canadians who were a target of credit card fraud were aware that they were a victim. Of the surveyed Canadians, 39% have admitted to not using their credit card in certain cases because they were worried about their account being compromised.

Another interesting finding was that 58% of people surveyed reported they cover their pinpad when entering their credit card pin at a merchant. 86% of people review their transactions every month.

SOURCES: Government Of Canada, Statcan, Canadian Bankers Association, RBC, TD Plus, MBNA, Scotiabank, BMO, CIBC and National Bank, Equifax, The Globe And Mail, CPA Canada

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Credit Card Fraud Statistics In Canada 2021 - Simple Rate

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Many Canadians prefer using a credit card over cash or debit. Credit cards offer rewards and are a useful tool to build your credit score. However, credit card fraud is still a large risk when using your credit card. Here are the credit card fraud stats for 2021 - compiled by the Simple Rate research team.

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1. Something that I learned about this topic that surprised me the most was that there is 800 million dollars of financial loss in Canada due to credit card fraud. This information truly surprised me as I didn't know how common this type of fraud is and this statistic just proved that it unfortunately happens to many Canadians. This statistic alone, has made me re-think some of my credit card purchases on certain websites and will make me be more careful when using my credit card in general.

2. This topic is very relevant to me for a couple of different reasons. The first reason is that throughout my research I learned that websites that sometimes don't have an 'in-person' store and have very cheap online prices, might not have great security and a lot of scammers go to these websites and gain access to peoples card information. Personally, I have online shopped at different, cheap websites that I won't be shopping at any longer. Another reason that this topic is relevant to me is that I work at a retail store where we encourage people to apply for the company MasterCard. Throughout my research I learned about 'False Application Fraud' and how people have used others information to apply for a credit card. This will allow me to triple check peoples ID's when their applying for a credit card through this company, to ensure no fraudulent activity is happening.

3. If I could pass on one message to any family member/friend, I would tell them that no matter what precautions you take, credit/debit card fraud can happen to quite literally anyone. Throughout my research I learned that unfortunately sometimes this type of fraud can't be prevented, no matter what you do. With that being said, its very important to check your bank statements and ensure your shopping either in-person or online at reliable, secured stores.

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Below I've attached a video that goes behind the scenes into the company 'VISA'. The reporter takes us through the company 'VISA' and shows us what happens at the facility every time we make a purchase with that card. There are multiple people viewing everyones transactions and watching for any fraudulent activity- all to protect the card users. At the end of the video, they talk about the different ways in which people can prevent credit card fraud from happening, some including: using secured websites- ones that begin with 'https' and checking your bank statements at least every sixty days.

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The article I've attached below explains the five most common types of credit card frauds. The five most common credit card frauds they explain throughout the article include: 'Card-not-present fraud', 'Counterfeit and skimming fraud', 'Lost and stolen card fraud', 'Card never arrived fraud' and lastly, 'False application fraud'. Throughout the article, they then go into explaining how each of these types of credit card frauds can happen and what to look out for.

I chose this article because it provides an in-depth explanation of each the five most common credit card frauds, which is much different from other websites, as they usually provide a general explanation on the topic as a whole. This article allowed to to understand each of these different credit card frauds and what to look out for in my personal life and even at job when helping a customer apply for our company credit card.

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In the eyes of scammers and thieves, credit cards are the holy grail. Data from the Australian Payments Network shows that over the 2017-18 financial year, credit card fraud grew by 4.8% to $565 million - more than five times the amount lost to other scams put together.
What is credit card fraud?

Credit card fraud, by definition, is the fraudulent use of a credit card done so through the theft of the cardholder's personal details. Thanks to the invention of the internet and the endless supply of eCommerce sites that came with it, credit card scammers now have an easier time than ever pinching your details.

In simpler times - before the internet exploded into society - you might've visualised credit card fraud as a man dressed in all black stealing your card from your wallet. But these days scammers have an arsenal of tricks to swipe from your credit card, and most don't even need your physical card to do it at all.

Here are the five most common types of credit card fraud out there, as well as how you can spot them and what you can do if you're caught by one.

Types of credit card fraud

The five key types of credit card fraud, according to the Australian Payments Network, are:

Card-not-present (CNP) fraud

Counterfeit and skimming fraud

Lost and stolen card fraud

Card-never arrived-fraud

False application fraud

1. Card-not-present (CNP) fraud
'Card not present' fraud occurs without the use of the physical card, mainly online or over the phone.
Amount lost in 2018: $477,920,701

Card-not-present transactions are becoming more and more popular as customers turn away from using their physical cards and simply enter their details to make a purchase. For example, an online purchase made ordering something on eBay is a CNP purchase, even if you've still read your details off the card. To be considered 'card-present', the card details have to be captured at the point of sale, like being pressed into a contactless reader, inserted into a merchant's terminal or used at an ATM.

Card-not-present fraud is the biggest contributor to overall credit card fraud, accounting for 85% of all fraud on Australian cards (this also includes debit cards). It increased in size by nearly 8% over June 2017-18 and occurs mainly when credit card details are stolen to make purchases. AusPayNet CEO Dr Leila Fourie says CNP fraud has become so popular now due to both the growth of eCommerce and the increased security around other types of fraud.

"Combatting CNP fraud is now a key priority across the entire e-commerce community and we're delighted with the strong progress made this year on a framework for mitigating CNP fraud. We expect this whole of industry approach will help reduce CNP fraud, in the same way chip technology is tackling skimming fraud," said Dr Fourie.

"Malware and phishing attacks are becoming increasingly sophisticated, so treat unsolicited emails and text messages from people you don't know with suspicion. Don't click on the link provided and don't be tricked into divulging confidential data such as your password."

So be careful with those credit card details online and don't speak too loudly when reading them out over the phone. In fact, just be careful about who you allow to read the back of your card in general, since thieves are having an absolute field day with our details online. Once they have your card details they may be able to spend to their heart's content until:

They hit yourcredit limit

Your account runs out of money

You contact your bank and tell them to cancel the card ASAP

Some credit card providers can detect suspicious activity on your credit card (e.g. a few multi-thousand-dollar transactions are suddenly being made in Lagos) and may temporarily suspend the card until you confirm whether the activity is really you. This can be a pain when using the card while you're travelling overseas, but so long as you inform your credit card provider of your travel plans beforehand, you shouldn't trigger any unnecessary card suspensions.

2. Counterfeit and skimming fraud
Counterfeit and skimming frauds are those that occur when details are illegally taken to create a counterfeit credit card. Amount lost in 2018: $14,935,409 (Source: AusPayNet)
'Skimming' is when a device steals the details of your credit card from its magnetic stripe and commonly occurs when a device, known as a credit card skimmer, is attached to either an ATM or a merchant's terminal. Skimming can also occur when someone brushes past you with a credit card skimmer. Details obtained via skimming can then be used to create a counterfeit card or to take part in some good old card-not-present fraud.

That near $15 million figure ($23 million when you take overseas fraud into account) might seem like a lot but has actually fallen quite significantly in recent years thanks to increasingly advanced protection offered by chip technology. Over the 17-18 financial year, skimming fraud fell from $42.3 million to $23 million - a record low - and only accounts for 4% of all card fraud now. This is a credit to Australian chip-protection technology, which is among the best in the world. But in America, there are 60 million compromised credit cards and three-quarters of these are estimated to be due to skimming and POS (point-of-sale) breaches, according to Gemini Advisory.

That doesn't mean you shouldn't be careful in Australia though. Keep your card well-within the confines of your wallet or purse, and if an ATM looks like it's been tampered with, report it and move on.

Skimming is also different from phishing, which is when you hand your card details over to someone under the guise of someone or something else. For example, a common phishing scam is when someone creates a fake company that looks like a real one (let's say Comonwealth Bank instead of Commonwealth Bank) and sends an email asking for card details. These phishers will often have extremely similar (or even the same) logos as existing companies with similar URLs to boot, so they can be easy to fall victim to.

According to Scamwattch, phishing is the most common kind of fraud in the country, with just under 25,000 reports occurring in 2018.

3. Lost and stolen card fraud
Lost and stolen card fraud occurs on cards that have been lost or stolen. Amount lost in 2018: $47,478,058 (Source: AusPayNet)
This one should be pretty self-explanatory - if your card has been lost or stolen by a pickpocket, then they are free to use that card until it's cancelled, suspended or it has hit the credit limit. Nearly $50 million was lost to stolen cards from June 2017-18, so know your card's whereabouts at all times. You can avoid the worst of the damage (or all of it) by cancelling or freezing the card as soon as you can by calling your bank. Some of them even let you do this with the click of a button in their mobile banking apps.

If you decide you don't want a credit card anymore, don't just hurl it into the trash. Thieves can still take it and use it since it'll still be active. Cancel it, and then cut it up to avoid having your card stolen from the bin.

4. Card-never arrived-fraud
'Card never arrived' fraud occurs on cards ordered by a customer that they never receive. Amount lost in 2018: $6,231,308 (Source: AusPayNet)
When you make an application for a credit card, 99% of the time that card will be sent to you in the mail. Card-never-arrived fraud is what happens when that card is either intercepted before it arrives, or if your card thief simply pinched it from your letterbox, which is more likely.

To protect against this type of fraud, the Australian Payments Network recommends installing a lockable mailbox, or at the very least checking your mailbox regularly.

5. False application fraud
False application fraud occurs where the account was established using someone else's identity or information.
Amount lost in 2018: $2,393,902 (Source: AusPayNet)

Application fraud can be a bunch of different things. It might be that someone applies for a credit card in your name and runs up a bunch of debt, ruining your credit rating. Or maybe they apply for a card in a different name but link your bank account to the card, so you get slugged with the repayments. Someone could run up thousands of dollars on a credit card or completely tarnish your credit score before you realise you've been had.

Back in 2014, an analysis of credit card applications by Veda found $1.6 billion worth of applications for credit were red-flagged as potentially fraudulent. Most credit card providers take application fraud very seriously and have a string of checks and balances to make sure this doesn't happen, but that doesn't mean the occasional fraudster doesn't slip through the proverbial cracks. Make sure you keep track of your bank accounts, keep sensitive information hidden and most importantly, take any kind of fraudulent activity seriously and report is as soon as you can.

Debit card vs credit card fraud

We've been calling it 'credit card fraud' throughout this article, but a lot of these types of frauds can also apply to debit cards. Scammers can still swipe your debit card details through skimming, through untrustworthy websites or by simply swiping it from your pocket or off the ground. But there is a key difference here.

Credit cards are a line of credit product, which means the money being spent willy-nilly by a thief isn't technically yours - at first. If you report the fraudulent activity as quick as you can, banks can cut them off and often will declare these transactions invalid, meaning you don't have to repay anything. Credit cards can also have extra fraud protection technologies that debit cards don't always have.

Debit cards, on the other hand, are a direct link to your money. A thief can clean you out of your entire savings account before you even realise it, although there's a good chance suspicious activity on your account will still be reported. A lot of debit cards still have a zero liability policy, which means you will still be reimbursed. But if the money is already gone, it could be weeks or even months before the card company investigates your claim and returns the money.

How to avoid credit card frauds

There are many different types of credit and debit card fraud, which means there are also many ways to avoid it. Doing any of the following could help keep you safe from fraud.

Keeping the anti-virus and security software on your computer up to date can be an easy way to protect yourself from fraud if you do a lot of your banking or shopping online. Just make sure it's a licensed, trusted anti-virus software: there are fake anti-virus programs that masquerade as real ones only to do the very thing you tried to stop by stealing your details.

Some anti-virus programs offer paid versions, which can be worth investing in to keep your details protected.

2. Don't trust suspicious sites

Don't enter credit card details on any site that isn't listed as 'secure': you can check for this by looking for the security certificate in the top left corner of the URL (there should be a little lock icon) or by looking for a 'https://' at the beginning. The S means there is added security and reduces the likelihood of fraud.

Also, be wary of sites that don't let you use secure payment methods like PayPal. Customer reviews online can also be a good indication of how trustworthy a website can be.

3. Be sceptical of strange messages

We've touched on this already, but phishers can trick you into giving your details to fake companies or people that look real. If you ever get an email or text message from an official-looking website asking you to click on a link and hand over your details, delete it straight away. And if you get a phone call asking for the same, hang up. In general, avoid reading your credit card details out loud over the phone, especially not to someone you weren't expecting.

4. Review each statement when it comes

If your card has been used by someone who isn't you, reading your monthly statement is a sure-fire way to pick up on it. This goes for other bank statements too - noticing any suspicious activity that's slipped past your bank's fraud detection services can cut off further fraud before it happens.

5. Check your credit report too

If someone's been applying for credit in your name or quickly running up a bunch of debts, doing a free check of your credit report can also clue you in. You can then contact your credit issuer or credit reporting bureau to get them to investigate the activity and have it removed from your credit history.

6. Don't throw away important documents

Ever receive those financial documents in the mail that never get opened and immediately get tossed in the bin? If you've ever done this, it's possible (although unlikely) that fraudsters can access this information and use it to commit credit card fraud. If you do decide to get rid of them, things like bank correspondence, government letters and personal documents should be either shredded or otherwise rendered unreadable before they're tossed.

It never hurts to play on the safe side.

7. Lock your mailbox

Another way to play on the safe side is to put a lock on your mailbox, as recommended by the Australian Payments Network. This can prevent 'card-not-received' fraud by stopping thieves from pinching your credit card before you ever see it. It can also stop them from gaining access to some of those letters we just talked about throwing away.

Other ways to prevent credit card fraud include:

Covering your PIN at an ATM

Checking ATMs for signs of damage or tampering

Locking or cancelling a card as soon as you notice it's missing

What to do if you've been scammed

The good thing about credit and debit cards is most of them have a zero liability policy, which means they don't hold you liable for "unauthorised transactions". These policies are enforced by the card issuer, like Visa, Mastercard or American Express, and essentially means your money is protected as long as:

You have used reasonable care in protecting your card from loss or theft; and

You promptly reported loss or theft to your financial institution.

This is why it's so important to notify your financial institution about card fraud as soon as you can, allowing you to completely nullify the effects of the fraud.

Report scams if you see em'

If you've been scammed, or see something you think is a scam or will lead to credit card fraud, there's no shortage of people you can get in touch with:

You can call your local bank or police station

You can get in touch with ACORN (Australian Cybercrime Online Reporting Network)

You can report it to Scamwatch by the ACCC

Reporting potential credit card fraud before it happens could save someone else thousands of dollars.

Savings.com.au's two cents

Credit card fraud hurts thousands and thousands of Australians every year to the tune of hundreds of millions of dollars. Don't become a part of the statistics. Keep your details secure and stay on top of when and where your credit card is being used and by whom. If you play it safe and have your wits about you, you should avoid being stung by fraud and your hard-earned dollars will remain safe.

Latest Articles

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5 most common types of credit card frauds explained | Savings.com.au

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In the eyes of scammers and thieves, credit cards are the holy grail. Data from the Australian Payments Network shows that over the 2017-18 financial year, credit card fraud grew by 4.8% to $565 million - more than five times the amount lost to other scams put together.