Canada is among the biggest per capita users of debit cards in the world and more than 99% of transactions occur without incident every year. We are lucky in Canada that we are protected by the Canadian Code of Practice for Consumer Debit Card Services and Interac policies. This means that your financial institution must reimburse you in full if you are a victim of debit card fraud as long as you took reasonable care to keep your account and PIN safe.
Financial institutions are continually upgrading card security to foil would be thieves, and the introduction of chip technology means that the store terminal and your card communicate with each other during the transaction and carry out security checks to ensure that the card is valid. This technology is very difficult to duplicate, and it means that debit card fraud losses have dropped by 92%. Despite this protection from your bank, you should still be extra vigilant when using your card in the following places.
Non-bank ATM’s - A favourite method of stealing debit card details is through card skimming. This happens when you swipe your card through a skimming device in what you think is a legitimate transaction. The skimmer retrieves your debit card information which the thief will get when he picks up the skimmer. These devices are often placed on ATM’s which are not attached to a bank, especially those in gas stations, hotel lobbies, small stores, or any outdoor locations. As the ATM’s are not owned by a bank, they are not always well monitored so become a target for thieves.
Mobile Vendors - Thieves can pose as legitimate street vendors swiping your card through mobile card terminals when they are actually swiping your card through a skimming device. You should be especially careful when using your card at events, street markets and other places where small businesses process card payments remotely.
Gas Stations - Skimmers are often found here as the readers are not always well monitored. Before you swipe your card, give the terminal a slight tug and if it does not feel secure do not swipe your card. You should pay for your gas inside or go to another gas station. It is better to suffer the inconvenience rather than having to deal with debit card fraud.
Self-Checkout Lines - Self-checkout lines in major retailers are also a prime target. Skimming devices are placed over the card readers often by a team of thieves one watching the camera while one places the skimmer over the card reader. Your information can also be stolen remotely using Bluetooth technology. Once they have your information it can be used to create clone cards, or scan be sold on old to others for fraudulent purchases.
How you can find out quickly if your debit card has been compromised
Your bank will usually investigate if they see any unusual activity on your card and you will often be reimbursed before you even know it has happened. However, it is a good idea to continually (at least once a week) monitor your bank account so that you can report anything suspicious immediately. Your current bank card can then be cancelled and a new one issued with a new number and PIN number.
To try and minimize your losses consider regularly changing your PIN number, keeping only a small amount of money in your checking account and turning off any overdraft protection. You are not liable for any fraudulent charges, but it can be a hassle dealing with debit card fraud.
Recent and Outlandish Covid-19 Scams
Why the Pandemic is Open Season for Scammers
Benefits and Impacts of Deferring your Mortgage Payments
Bubble Friendly Ways to Vacation
Will Covid-19 Relief Measures Affect my Taxes?
How to Manage your Personal Finances During the Pandemic
Covid-19 Now is the Time to get Serious About Your Financial Wellness
What does your CRA Notice of Assessment Mean?