Debit Card Fraud

Debit cards are the most frequently used cards today including credit cards. Statistics show that by the end of 2004, over 746 million transactions were made with debit cards across Canada, and that was only for cash withdrawals!*

As our reliance on technology grows, our concerns about safety and protection will also grow. As it becomes easier for people to manage their money, added care will also be required to ensure that confidential information does not fall into the wrong hands.

This is especially true when considering debit cards. Incidents of “skimming” have occurred recently where consumers have provided their debit card to make a payment. The merchant swipes the card through a hidden device to obtain information from the magnetic stripe so that duplicate cards can be issued. At the same time, a camera will record consumers entering in their PIN.

To avoid fraud from occurring, consumers should consider using the following precautions for all debit transactions.

• Review your monthly bank account statements or bankbooks on a regular basis. Look for extra or missing transactions. Report any discrepancies immediately. Missing transactions could be asign that your card has been skimmed.
• Your ABM/debit card is the key to your account(s). It is for your personal use only. Keep you card in a safe place and never "lend" it to anyone, including friends and family members.
• Conducting an ABM or debit transaction requires both your access card and the corresponding Personal Identification Number (PIN). Protect your PIN, it is your electronic signature. Don't write it down - memorize it.
• If you are selecting a PIN, always avoid the obvious e.g. your name, your telephone number, your date of birth.
• Never disclose your PIN to anyone. No one from a financial institution, the police or a merchant will ever ask you for your PIN. You are the only person who should know it.
• Always conduct ABM transactions when and where you feel most secure. If you are uncomfortable about using the machine for any reason, do it later or go to another location.
• To ensure privacy when conducting an ABM or debit transaction, use your hand or body as a shield to prevent others from observing you entering your PIN.
• Never let your banking card out of your sight when conducting a transaction at the point-of- sale. Always remember to take your banking card and transaction record with you once your transaction is completed.
• If your card is lost, stolen or is retained by an ABM, notify your financial institution immediately.
• Robbery rarely occurs at ABMs, but if it should happen, remember that your safety comes first. Always report the incident to the police and to your financial institution.

*Canadian Bankers Association, October 2004.