Credit card fraud

How credit card fraud happens

Credit card fraud happens when someone uses your credit card or credit card information without your permission.

Your information or your card is used to:

• make a purchase in a store or at a payment terminal
• make a purchase or a transaction online
• withdraw cash from an automated teller machine (ATM)
• make a purchase or a transaction by phone

A person might steal your credit card information by:

• getting bank statements from your trash or mailbox
• hacking into your computer or computers of companies that have payment information. For example, your Internet provider or your gym
• installing a device on payment terminals that record your card information when you make a purchase
• sending you fraudulent emails or text messages asking for your credit card information
• getting you to make a purchase with your card on an illegitimate website accessing your lost or stolen mobile device
• pretending to be a bank employee and asking for your credit card information over the phone

Some of these tactics are also called “scams”. A scam is a type of fraud where a person tricks you into providing money or sensitive information for misuse.

Learn more about the different scams affecting Canadians.

Protecting yourself from credit card fraud

All credit cards issued in Canada have a computer chip that makes transactions more secure. The computer chip works with your personal identification number (PIN) to make sure you give permission for each transaction. This helps protect you against fraud if someone steals your credit card.

However, credit cards may also have a contactless feature. This allows you to make purchases up to a certain amount without entering a PIN. Someone who finds or steals your credit card may access this amount.

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

Keep your PIN safe

Choose a PIN that is hard to guess. For example, avoid using your date of birth, Social Insurance Number (SIN), address or telephone number as your PIN.

Be sure to keep your PIN safe:

• never share your PIN with anyone, not even a family member
• memorize your PIN rather than writing it down. If you must write it down, keep it in a safe place away from your card or wallet
• never save your PIN on your computer or mobile device
• change your PIN often
• don’t use the same PIN for multiple cards and accounts
• always protect your PIN when making purchases at payment terminals

Some financial institutions offer the ability to pay with a mobile device, such as a smartphone or tablet. Even with this payment method, you must always keep your PIN safe.

If you suspect that someone knows your PIN, change it immediately and contact your financial institution.

If you share your PIN with someone, you may be responsible for transactions you didn’t make or approve.

Learn how to protect yourself from unauthorized mobile payments.

Protect yourself in public places

Protect yourself from credit card fraud in public places:

• keep your credit card in a safe place
• limit the number of credit cards you carry with you
• hide the keypad with your hand or body when you enter your PIN at an ATM or payment terminal
• keep your credit card in sight at all times when making a purchase
• report anything you think is suspicious about a payment terminal or an ATM. Contact the business’s head office and your credit card issuer
• always keep an eye on your mobile devices and make sure they lock within seconds after using them

Protect yourself at home

Protect yourself from credit card fraud at home:

• lock your mailbox to prevent someone from stealing your credit card statements or replacement cards
• sign the back of a new credit card immediately after you get it
• destroy old credit cards that are no longer valid by cutting them up
• keep your credit card statements in a safe place
• get written confirmation from your credit card issuer when you cancel your card

Protect yourself online

Protect yourself from credit card fraud online:

• use only secure websites when sharing personal or financial information or buying something online. Look for websites with addresses starting with “https” or with a padlock image in the address bar
• keep your computer firewall, anti-virus and anti- spyware systems up to date
• don’t give your credit card information over email
• log out of your online banking website as soon as you’re done using it
• don’t allow your computer or mobile device to remember your password or banking information like your account number
• don’t use public Wi-Fi or public computers to do your online banking or shopping
• if you must use a public computer, clear its history and cache when you finish using it

Get Cyber Safe is a national public awareness campaign. It informs Canadians about cyber security and how to protect themselves online.

Learn how to stay safe online with Get Cyber Safe.

Learn more about your rights and responsibilities when banking online.

Protect yourself over the phone

Legitimate credit card companies don’t ask for personal information over the phone. If you’re suspicious of a call, hang up and call back using the number on the back of your credit card. If they confirm they didn’t call, let them know about the situation. This way, they can document it and monitor your account.

Protect yourself from credit card fraud over the phone:

• take a moment to think about why this person or company is contacting you

• don’t give out credit card information over the phone in public
• only give your credit card information to a company you trust
• request further information from someone who calls asking for credit card information

Learn how to protect yourself from telemarketing and retail scams over the phone.

Learn how to report suspicious text messages.

Additional tips to protect yourself

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

• make a list of your credit cards with the phone numbers to call in case of theft or loss
• never lend your credit card to anyone, not even family members
• keep any convenience cheques your credit card issuer gave you in a safe place
• report a lost or stolen card to your credit card issuer immediately
• review your credit card statement monthly
• report any transactions you didn’t make or approve to your credit card issuer immediately
• check your credit report at least once a year and immediately report any errors
• enable multi-factor authentication whenever possible

With multi-factor authentication (MFA), you need to provide multiple authentication factors to access a device or an account. For example, scanning your fingerprints or entering a passcode. If cyber criminals gain access to your password, they still need to provide additional information to access your accounts.

Learn more about multi-factor authentication.

You may use a mobile device to do your online banking. If you lose this device, let your credit card issuer right away. You should also contact your mobile service provider so they can help you de-activate your device.

If you're a victim of credit card fraud

If you think you’re a victim of credit card fraud, contact your credit card issuer immediately. Take note of who you talked to and when you spoke to them.

You may then proceed as follows:

1. write down what happened and how you first noticed the fraud
2. keep all documents that you think might be helpful if the police investigate the fraud
3. contact your local police to report the incident
4. if you believe a company has been hacked in the fraud process, contact them
5. continue to check your credit card statements for any additional fraud charges

Put fraud alerts on your credit reports

You may contact Canada’s 2 main credit bureaus: Equifax and TransUnion. Ask them to place a fraud alert on your credit report. Ask for a copy of your credit report from each credit bureau. Review them and report any incorrect information.

Learn how to get your credit report.

Report the fraud to the Canadian Anti-Fraud Centre

The Canadian Anti-fraud Centre is a national service that gathers intelligence on fraud across Canada and assists the police with prevention. It’s jointly managed by the Royal Canadian Mounted Police, the Competition Bureau Canada and the Ontario Provincial Police.

Contact the Canadian Anti-Fraud Centre.

Related links

• Resolving an unauthorized transaction
• Unauthorized credit and debit transactions: know your rights and responsibilities
• Getting your credit report and credit score
• Mobile wallets