Debit card fraud
How debit card fraud happens
Debit card fraud happens when someone uses your debit card or debit 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)
- withdraw money with an in-store purchase
A person might steal your debit card information by:
- installing a device on a payment terminal that records your card information when you make a purchase
- looking over your shoulder at the personal identification number (PIN) you enter at an ATM or payment terminal
- sending you fraudulent emails or text messages asking for your debit card information
- pretending to be a bank employee and asking for your debit card information over the phone
- using a device that jams your card in an ATM. An accomplice then suggests that you try to enter your PIN a few times. When the card remains jammed, this person later removes your card and has your PIN
- accessing your lost or stolen mobile device
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 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 debit card.
There are actions you may take to protect yourself from debit card fraud. Follow these tips to protect your debit card and your personal and banking 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
- hide the keypad when you enter your PIN at an ATM or payment terminal
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.
Enable multi-factor authentication
Whenever possible, enable multi-factor authentication (MFA). With MFA, you need to provide more than one authentication factor to access a device or an account. For example, to access your bank account, you may need to scan your fingerprints or enter 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.
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 ATMs, online and in-store transactions. This limit also applies to debit cards that have a contactless feature. Someone who has your debit card may access this amount.
If you feel that your limit is too high for your needs, contact your financial institution to change it. You may also ask them to disable the contactless feature on your debit card.
Protect your debit card and your debit card information
To better protect yourself from debit card fraud:
- keep your debit card in a safe place
- never lend your debit card to anyone, not even a family member
- 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
- complete your transaction before answering anyone who may try to get your attention
- check your account statements often to make sure all transactions are correct and legitimate
- keep paper and electronic copies of your account statements in a safe place
- contact your financial institution right away if your card is lost, stolen or stuck in a machine
- 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
You may use a mobile device to do your online banking. If you lose this device, let your financial institution know right away. You should also contact your mobile service provider so they may deactivate your device.
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.
If you're a victim of debit card fraud
If you think you’re a victim of debit card fraud, contact your financial institution immediately. Take note of whom you talked to and when you spoke to them.
You may then do the following
- write down what happened and how you first noticed the fraud
- keep all documents you think might be helpful if the police investigate the fraud
- contact your local police service to report the incident
- if you believe a company was hacked in the fraud process, contact them
- continue to check your bank account statements for any additional fraudulent charges
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. It assists the police with prevention. It’s jointly managed by the Royal Canadian Mounted Police, Competition Bureau Canada and the Ontario Provincial Police.
Contact the Canadian Anti-Fraud Centre.
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