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Hello, I'm Andrew Dewis. Welcome to my wall. For my Money Matters Assignment 2, the topic I chose is Credit/Debit fraud.

Some of the things I'm going to be talking about is the ways Credit/Debit fraud can occur like card skimming and the ways you can prevent it from happening. I'm will also talk about what to do if it ever happens to you.

I hope you enjoy the information I have researched and pulled together.

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This website is a great resource. It provides great information on what credit fraud is, how to protect yourself, how to report fraud, and what protections are available to the cardholder.

I picked this website because it includes great, simple information that is useful to younger people, like college students.  A specific piece of information that I found useful was how to report the fraud by freezing my account and contacting the bank but also that most major cards have protection built in.  As long as you are protecting your information, like your PIN, the banks cover the cost of the fraudulent purchases.  I also learned that some home insurance policies provide some protection for 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. 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.

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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:

Hiding your PIN. If you're asked for your PIN when making a transaction, be sure to cover your PIN as much as possible as you enter it.

Not sharing your card details with others. You should always know where your cards are and what they're being used for. Lending your card or information to someone else can make you vulnerable.

Regularly reviewing charges made to your card. You should check your payments frequently to ensure no unauthorized charges have been made. Many banks also provide alerts when transactions are made and some can even send you a text message when they suspect a fraudulent attempt on your card. Keeping a close eye on what is being bought with your card will allow you to take quick action if anything fishy pops up.

Shredding documents. If you're planning to throw out financial documents (or an expired credit card), shred them first to protect any details listed on them.

Using only secure websites. Only make online purchases through websites you trust. Look for "https" at the being of a site's URL - this signifies that the website is secure.

Avoiding public wifi. These networks can be used by many individuals at one time and can potentially open up your information to others.

Minimizing the sharing of personal info online. It's easy to overshare on social media, but posting certain details (like your date of birth) can expose answers to security or authentication questions.

Picking stronger passwords. Just like creating a PIN that doesn't contain personal numbers (such as your birthday), make sure your passwords are also hard to guess. This goes for more than just your online banking password. Many online shopping sites now allow you to save your credit card details for faster checkout, which means these accounts also need more secure passwords.

Taking extra security steps. Setting up additional security steps, like two-factor or two-step verification, can help to add another layer of privacy to your info.

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

Freeze your accounts as soon as possible - some banks allow you to do this directly through their mobile apps.

Inform your financial institution about the lost card or suspected fraud. They may cancel your current card and issue you a new one.

Report the case to your local police.

Notify any other services that could be impacted by potential fraud, such as your phone company.

Report the incident to the Canadian Anti-Fraud Centre.

Ask Equifax and TransUnion (Canada's two credit reporting agencies) to place a fraud alert on your file and for copies of your credit report. Review and monitor your credit reports and flag any inaccuracies.

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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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Website #2 - What to do if it happens to you?

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Website #2 - What to do if it happens to you?

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This website includes excellent information.  It provides an in depth look at the ways fraud can occur.  It is very reliable source of information since it published by the government of Canada to inform people about credit fraud.

Something that I was very interested in was how the criminals find your information.  It is not just through watching enter your PIN but also through scavenging your documents.  They may look in your garbage or steal your mail.  If they gather enough information, they can apply for a card under your name which allows them to make illegal purchases.  This website also teaches us how to put a fraud alert on our cards and how to report issues to the Canadian Anti-Fraud Centre.

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Recognizing, preventing and reporting credit card fraud.

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Website #3 - How to Prevent Credit/Debit Fraud

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Website #3 - How to Prevent Credit/Debit Fraud

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This website uses a real example of a fraud that occurred where the bank was not covering all of the losses.  It is in the format of a question and answer.  The author outlines reasons why the bank may not have covered the charges that were illegally made on the user’s account.

The website outlines first that this is a crime, so it is necessary to report this information to the police as well as the bank.  It also outlines the responsibilities of a card holder, for example not using your date of birth or phone number as a PIN.  Other examples include, not sharing your PIN or not reporting a lost or stolen card.

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Fraudsters can exploit victims through text, email and other means. What are your options if that happens?

Ask MoneySense

-William

How to deal with financial fraud

Sorry to hear about this situation, William. Any fraudulent activity in your financial accounts can be unnerving. But knowing someone was able to access your bank accounts directly is really intrusive.

Interac e-Transfer is generally a safe way to send money in Canada. In fact, "for every $100 spent across the Interac Debit and e-Transfer networks, less than $0.02 was lost to fraud [in 2021]," according to Interac.

Regardless, fraud happens. E-Transfer fraudsters generally use text or email channels to exploit victims. Some examples of fraud in Canada include:

If the fraudsters were able to send transfers directly from your account, William, it sounds like they were able to hack into your online banking. This may have been from a phishing text, email or website that tricked you into entering your bank login details and allowed the fraudsters to access your account afterwards.

How do you report bank account fraud?

According to the Canadian Anti-Fraud Centre (CAFC), the first things to do when you are a victim of fraud are:

1. Contact your financial institutions
Put flags on all of your accounts, even at other financial institutions. You should change your passwords.

2. Contact the police
Report the incident to the police and update them on any further developments.

3. Report the incident
Contact Canada's two credit bureaus: TransUnion and Equifax. You can consider credit monitoring that reports suspicious credit activity to you. You should also contact the CAFC by phone at 1-888-495-8501 or using its online Fraud Reporting System.

What do banks consider unauthorized transactions?

It sounds like you have done all the right things so far, William. As far as the bank's responsibility, each financial institution may have different definitions of what constitutes an unauthorized transaction. You have to check your debit card or credit card agreements to see the terms, which could include restrictions on how long after the transaction occurred that the financial institution will take responsibility. That may be where you are running into trouble.

According to the Financial Consumer Agency of Canada (FCAC), you may be responsible for losses in cases when you:

Use your date of birth or telephone number as your PIN.

Shared your card's PIN with someone, including a family member.

Keep a written record of the PIN "in proximity to" the card, including writing your PIN on the back of the card.

Did not report your card as being lost or stolen in the amount of time specified in your card agreement.

Refuse to cooperate in an investigation of unauthorized use.

Made fraudulent deposits with your card.

Did not take the necessary steps to protect your pin.

If you haven't had luck dealing with your bank directly, William, you can contact the Ombudsman for Banking Services and Investments at 1-888-451-4519 or [email protected] .

You could speak with a bank fraud litigation lawyer to see if they can help. An initial consult might confirm whether you have a case or if there are further steps you can take.

Does home insurance cover identity theft?

Home insurance sometimes covers identify theft in Canada, but this cyberfraud situation is different. If you have spoken to your insurer and they are unable to help, there may not be an insurance solution for you.

Some Canadian banks and financial institutions offer alerts if a bank account or credit card transaction exceeds a certain limit. This might be one way to avoid large transactions that could put your accounts at more risk. Two-factor authentication, to the extent that it's an option for your financial institution log-in, is another good practice.

In summary, William, it sounds like the fraudsters were able to access your account directly through your online banking. The terms of your debit card agreement might limit your ability to recover funds. I would continue to escalate the issue with the bank and file a complaint with the Ombudsman. It may be worthwhile speaking with a lawyer to at least see if they think there is a legal means to pursue things further beyond what you are already doing. I am sorry about your situation and wish you good luck with a resolution.

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Financial fraud in Canada: What to do if your bank account or credit card is compromised - MoneySense

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Fraudsters can exploit victims through text, email and other means. What are your options if that happens?

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This website outlines what card skimming is, where you find, and how you can protect yourself from it.

Card skimming is when criminals use a device that they install into an ATM, gas pump, etc so that when you insert your card, it scans your card information so that when the criminals return, they can take your information.  It is most common at ATMs and gas stations, but you may also find it at restaurants.  Some even use a tiny camera to capture your PIN.

To protect yourself, always protect your PIN and always take a look to see if the ATM has been tampered with, like if your card doesn’t fit right, or if it is too tight.  These can be a sign that there is a skimmer.

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Although skimmers can be hard to spot, it's possible to identify a skimming device by doing a visual and physical inspection.

Before using an ATM or gas pump, check for alignment issues between the card reader and the panel underneath it. Skimmers are often placed on top of the actual card reader making it stick out at an odd angle or cover arrows in a panel. Compare the card reader to others at a neighboring ATM or gas pump and look out for any differences.

Gas pumps should have a security tape or sticker over the cabinet panel. If the tape looks ripped or broken, avoid using the card reader because a thief may have tampered with it. Try looking inside the card reader to see if anything is already inserted-if there is, it may be a thin plastic circuit board that can steal card information.

A physical inspection of a card reader and keypad can often reveal fraudulent devices. Feel around the reader and try to wiggle it to see if it can easily come out of place. The FTC has a photo example of a card skimming device on their website.

Authentic card readers are robustly manufactured, meaning if any part of the card reader can easily move around, then it's probably been installed illegally by a thief. If the buttons on an ATM's keypad are too hard to push, don't use that ATM and try another one.

Other Ways Cards Can Be Skimmed

Retail Store

It's much more difficult for a thief to install a card skimmer on a point-of-sale (POS) system at a retail store, but it can happen. Make sure the card reader looks as it should. If a restaurant is involved in a scam, there may be no way to know because cards are often handed to the server who can then swipe the card through a skimmer before giving it back to the customer.

Card Shimmer

A card shimmer (named after its thin profile) is a type of card skimmer that records information from chip cards, including your PIN. They fit inside a card reader and can be inserted by a criminal pretending to make a purchase or withdrawal. Once inside, they record the chip card information of the cards that are subsequently inserted into the reader. The thief will then come back and insert another card, while once again pretending to make a purchase or withdrawal, which will download your card's data and that information will be used to make dummy credit and debit cards so that thieves can make purchases on your dime.

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Forbes Advisor Canada tells you how to spot a card skimmer and introduces you to the card shimmer.

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Video #1 - How Credit/Debit Fraud Can Occur.

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Video #1 - How Credit/Debit Fraud Can Occur.

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This website was very useful as it explains how card skimming and shimming work.  Skimming involves stealing information from magnetic strip cards and shimming steals information from computer chip cards.  The criminals use this information to make fake cards or to create fake identities.

What I found of particular interest is how little information is needed to create the fraud.  All that is needed is the card number and expiration date, the card holder’s name, and the card verification number (CVC).

What I didn’t know is that there are two types of CVC number.  CVC 1 codes are embedded in the card and let the bank know that the card is being used in person and CVC 2 codes are used online.  These are the 3 or 4 numbers on the back of the card that you need to enter each time.

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How Credit Card Fraud Works & EMV Card Shimming | Bank Fraud and Scams: Credit Card Fraud

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This video is a small Consumer Alert from CTV news Toronto.  It outlines that even if you are following all of the rules when your debit or credit card goes missing, some banks may still try to get you to be responsible and pay for the charges.

The video included three different examples where people told their stories and even though they reported the fraud, the banks were still trying to charge them.  One person lost their wallet, and another had issues with purchasing a motorcycle.  The advice from them was to make sure to report a loss to the bank quickly and also to know the terms of your purchase contracts.

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How to protect yourself from credit card fraud

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This video included several specific ways to protect yourself from credit card fraud.  They are all very simple and can be done by anyone.

This includes shredding your documents before throwing them out, including your cards and putting them in different garbage bags to make it harder for criminals to get the information.

Other examples were to not share your information, only deal with your cardholder when you contact them, often calls and emails are scams or phishing.  Always review your monthly statement and contact your bank as soon as something doesn’t look right.  A final excellent piece of advice is to have your bank customer service number saved on your phone to make it easier to contact them to report a loss.

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This video is a CBC news story from Calgary where they spoke with an RCMP police officer that told us how easy it is for a criminal to install a skimming device.  Using it a gas station is a prime target because we all need to fill up with gas regularly.

The officer said that the information gets sent to credit card lab so that they can create fake credit cards.  To me this sounds like organized crime.

The end of the video had some advice to protect yourself and that was to simply wiggle the slot where you put your card to see if there is a skimming device attached.

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cbc news cbcnews cbc broadcasting media public broadcasting news canadian news

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canadian broadcasting corportation (tv network)

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The CBC's Erin Collins gets a demonstration from Calgary Crimestoppers about how to protect yourself from credit card skimming at the gas pumps.

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This is an example of a skimming tool. It is designed to look like the real card slot and fit over top so that you don't even notice that your information is being stolen.

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This is my reminder to everyone to protect their banking information.  Here are some tips:  Make sure to shred all documents, use a secure PIN that you don’t share, and report issues to the bank as soon as possible.

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The thing I learned about my topic that surprised me the most was how easily card skimmers can be installed and how real they look.  If you don’t pay close attention to them, you may not notice that a device is fake, and you may have your information stolen.

I’m especially interested in card fraud because my grandmother was scammed.  For her it was through a phishing email, but it had the same end result.  This is why we should make sure to check if information is real by calling the bank to check if it is true.  This is an important way to protect ourselves from fraud.

If I could pass on the information that I learned from this assignment to my friends and family, I would remind them of the importance of being cautious with their banking and personal information.  This would include keeping passwords safe, secure, and private, and making sure that they are communicating with their actual bank.  These are two great ways to protect themselves.