According to the Canadian Bankers Association, Canada ranks second in the world when it comes to debit card usage. In 2009, Interac reported a total dollar loss for cardholders to be approximately $142.3 million.
To protect yourself against debit and credit card frauds, Better Business Bureau offers the following advice :
If you are shopping at a retailer in-person…
Protect your PIN. Use your hand or body to shield your PIN when you are making transactions at a bank machine or a point-of-sale terminal. Cover as much as possible since scammers use cameras to capture PIN codes.
Look for signs of a tampered PIN pad. Check if the PIN pad has been tampered with before handing over your debit card. Look for the absence of a serial number, raised screws on the back, broken seals or signs of wear on the bottom panel could indicate the pad has been doctored.
Keep an eye on your card. Never let your credit or debit card out of your sight when you make a transaction.
Check your statements. Check your bank and credit card statement often, daily if possible, for any illegal activity. Call the card provider or institution at once if you are suspicious about anything in your account.
If you are shopping online…
Don’t fall for phishing. You click on a link in an email purportedly from your bank and end up at a Web site where you're asked to enter and "verify" your debit card number or Social Security number. This website spoofing is better known as “phishing.” Your bank would not contact you by email to verify information, so do not fall for the phishing trap.
Confirm your online purchase is secure. Shoppers should always look in the address box for the “s” in https:// and in the lower-right corner for the “lock” symbol before paying. If there are any doubts about a site, BBB recommends right-clicking anywhere on the page and select “Properties.” This will let you see the real URL (Web site address) and the dialog box will reveal if the site is not encrypted.
If you find any unauthorized transactions…
Let your financial institution know. Notify your financial institution's branch or telephone banking call centre immediately and make sure you are able to tell the bank the amount and date of the fraudulent transaction. The bank may be able to explain the transaction and, if it is fraudulent, will be able to tell you what to do next. Keep all of the documents that provide evidence of the fraud. Record the name of the person you spoke to at the bank, as well as the date and time you called.
Report the loss to credit-reporting agencies. TransUnion (transunion.ca), Equifax (equifax.ca) are the key credit bureaus who can flag, or place an alert on an account for fraudulent activity, which then requires that they contact the cardholder before any new lines of credit are opened. Consumers can also ask to have an account frozen, which means their credit history can’t be reviewed by lenders and prevents new lines of credit from being opened. But, keep in mind, it may take several days to unfreeze accounts.
Report it to police. Contact your local police’s non-emergency number and record the police report number. You should also keep a log of transactions to help you figure out where the fraud could have occurred.