What is Fraud? Fraud is generally defined in the credit card world as any transaction that was not made by the cardholder and these transactions can occur in a number of different ways.
Terms:
Lost or Stolen Card: You, the cardholder are no longer in possession of your cards after having "lost" the card at an unknown place or time or, after realizing that your card was "stolen" from your purse or wallet, home, office, etc. Fraud occurs when the lost/stolen card is subsequently used without your permission.
Non-receipt: You did not receive a new or replacement card that was sent to you by your Issuing bank. You may have no idea that the card went missing until you receive a statement listing transactions not made by you.
Fraudulent Application: Your personal information is used to apply for a credit card. This may include your name, address, SIN, and date of birth. This type of fraud is often difficult to detect until the issuer receives a complaint from the consumer or, the account goes into collections shortly after having been issued. If you’re not a customer of the bank that issued the card, you may not know a card has been issued in your name until you apply for credit elsewhere and are denied because of a poor credit rating.
Counterfeit: You’re in possession of the card issued to you by your bank however transactions appear on your account statement not made by you. This could be an indication that a counterfeit card bearing your account number is in circulation and being used at the same time you’re making legitimate purchases.
Account Takeover: You’re in possession of your card and somebody posing as the cardholder "takes over" the account by requesting a replacement card on the same account, usually to be mailed to a different address. You would not have any knowledge that this has been done until you receive an account statement showing transactions not made by you or, you fail to receive your monthly account statement.
No Card Present: You’re in possession of your card and somebody has made transactions using the card number only, as in the case of mail orders, phone orders, or Internet transactions. You may not know this has been done until you receive an account statement showing mail/phone order or online transactions not made by you.
Other: There are other scenarios that are classified as fraud, but don’t fall into the described categories. An example would be the theft and subsequent use of balance transfer cheques, which you may or may not have ordered from your bank.
Worried about credit card crime? With more and more of us shopping online and over the phone, protection from fraud is more important than ever. Most banks now offer a fraud protection guarantee so you won’t pick up the bill if someone steals your credit card details.
Actions:
Check your card statements regularly – if anything seems unusual, alert your credit card provider immediately.
When signing up for your credit card, the agreement the provider sends to you details the maximum amount you would have to pay if your credit card was lost or stolen, and/or if someone used it illegally. This maximum amount applies only until you inform the credit card issuer that the card has been lost or stolen. Keep in mind that all is negotiable, therefore ask if this amount can be lowered. Credit cards are like any product - as a consumer you can negotiate.
Call your issuing bank immediately. The Issuer may want to cancel your current card and issue you a new one. Check to verify that your mailing address has not been changed.
As soon as you report the incident, you are no longer liable for any misuse of the card. This is why it is critical to report a stolen or lost card right away. Please ensure that you write down the date/time and person when contacting your credit card company
If you’re still in possession of your card but fraudulent purchases have been made on the account, call your issuer to report the fraud and request a new card.
In the event of a fraud application being made in your name or if you are a victim of an account takeover, contact the credit bureaus to let them know you’re a victim. A "Fraud Alert" message will be placed on your file. You should also request a copy of your credit bureau report and you should review it carefully for any information that may be incorrect. Contact the credit bureaus at:
Continue to check your statements in the following months to ensure the problem is completely resolved.
Report the fraud activity to the proper authorities. Your issuer will advise you if they require that you make a police report.
If your Social Insurance Number was compromised, you should report the incident to Human Resources Development Canada at 1-800-206-7218.
If you’re a victim of an Account Takeover or Fraud Application, or if you’ve been defrauded due to phone solicitation, report the incident to Phonebusters at 1-888-495-8501.
Phonebusters is a central agency that collects information on telemarketing complaints and victims of fraud applications throughout Canada and disseminates this information to the appropriate enforcement agency.