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:
- write down what happened and how you first noticed the fraud
- contact your financial institution right away to tell them about the fraud
- take note of whom you talked to and when you spoke to them
- keep all documents that you think might be helpful when the police investigate the fraud
- contact your local police service to file a complaint
- 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 is jointly managed by the Royal Canadian Mounted Police, the Ontario Provincial Police and the Competition Bureau Canada. It's Canada's central repository for information about fraud.
Contact the Canadian Anti-Fraud Centre.
Related links
FAQs
Credit and Debit Card Fraud
If the bank reviews your complaints and takes responsibility for the loss, they will report it to police, there is no need for you to report it. If the bank determines that you are responsible for the loss, you must get a letter in writing from them and then report it to police.
How do people get caught for debit card fraud? ›
How Do Banks Investigate Fraud? Bank investigators will usually start with the transaction data and look for likely indicators of fraud. Time stamps, location data, IP addresses, and other elements can be used to prove whether or not the cardholder was involved in the transaction.
How do banks investigate unauthorized transactions in Canada? ›
In cases where unauthorized transactions are identified, banks are bound by regulatory requirements to report these incidents. Suspicious Activity Reports (SARs) are filed, and due diligence is conducted to gather supporting documentation for the questionable transactions.
What is the punishment for bank fraud in Canada? ›
Fraud charges over $5,000 is a straight indictable offence and carries a maximum sentence of 14 years in prison. It is a very serious criminal charge, and in many cases, a conviction will lead to a lengthy prison term.
Do banks refund scammed money in Canada? ›
You should immediately report any unauthorized transaction to your bank. If you took the necessary steps to protect your PIN, you should get your money back. You're not responsible for losses that result from circ*mstances beyond your control, which include: technical problems.
What happens if my debit card is used fraudulently? ›
If you notify your bank or credit union within two business days of discovering the loss or theft of the card, the bank or credit union can't hold you responsible for more than the amount of any unauthorized transactions or $50, whichever is less.
Can I track someone who used my debit card online? ›
Remote or card-not-present (CNP) fraud occurs when your credit card has been used online without your permission. Unlike in-person (or card-present) fraud, there is usually no witness or security camera footage to track or identify the person using the card, so finding the culprit can be significantly more challenging.
What percent of fraudsters get caught? ›
Some estimates say less than 1% of credit card fraud is actually caught, while others say it could be higher but is impossible to know. The truth is that most credit card fraud does go undetected, which is a major reason why it's become a favorite among crime rings and fraudsters.
Do police investigate debit card theft? ›
The police can then investigate the matter and potentially file felony charges against the culprit. If the thief is found and convicted, the judge can order that the thief pay victim restitution; or. Filing a civil lawsuit. The victim can sue the thief for theft and fraud.
Can banks find out who used your card? ›
Can You Track Someone Who Used Your Credit Card Online? No. However, if you report the fraud in a timely manner, the bank or card issuer will open an investigation. Banks have a system for investigating credit card fraud, including some standard procedures.
Filing a false credit card dispute should never be done; it is credit card fraud and can have consequences like fines, court fees, jail time, blacklisting, and hurt your credit scores.
What two conditions must be met in order to prove fraud? ›
In the United States, common law generally identifies nine elements needed to establish fraud: (1) a representation of fact; (2) its falsity; (3) its materiality; (4) the representer's knowledge of its falsity or ignorance of its truth; (5) the representer's intent that it should be acted upon by the person in the ...
Can you go to jail for lying to a bank about fraud? ›
Section 1014 criminalizes the act of making false statements to a financial institution. If convicted of bank fraud you may be facing large fines of up to $1,000,000 and/or imprisonment of up to thirty years.
What is the limitation period for fraud in Canada? ›
This two-year limitation period applies to both: legal fraud or misrepresentation, (where money is sought for damages), and to. equitable fraud or unconscionable bargain, (where equitable relief is sought for damages, such as the cancellation of a contract).
Can police find who stole my credit card? ›
Banks, credit card companies, and law enforcement agencies use sophisticated detection and tracking methods. The success of catching fraudsters also depends on the promptness of fraud reporting and the specific circ*mstances of each case, though.
Can credit card theft be traced? ›
Using Geolocation Tracking
Credit card companies and banks generally use software to extract geolocation data and leverage it for information like the malicious user's time zone, internet service provider (ISP), and exact location of the fraudster at the time of the fraudulent purchase.
Who investigates identity theft Canada? ›
The Canadian Anti-Fraud Centre collects information on fraud and identity theft. We provide information on past and current scams affecting Canadians. If you think you're a victim of fraud, report it!
How do you prove theft in Canada? ›
To be convicted of theft, the Crown must prove the charges beyond a reasonable doubt. They must show that the property was taken or stolen without permission and without the lawful authority to do so. In individual cases, there may be explanations or defences available to individuals charged with this crime.
