Carrying around a credit card may make your life easier, but it also makes the jobs of fraudsters and thieves easier too. With technological advancements, a clerk at the store can easily clone your credit card without you realizing it. Pickpockets still exist, and your wallet containing your credit cards could get stolen. You can be a victim of credit fraud, even if you reveal your Personal Identification Number (PIN) number over the phone or email to the wrong person. At times, digging through your trash or mail, fraudsters acquire a financial document with your PIN number on it. to make sure you are not a victim of credit card fraud, you must take preventive measures as well as review your financial statements and make sure that there are no irregularities.
Canadian Bankers Association in 2011 recorded credit card fraud at C$436 million. Credit card fraud could happen to anyone, hence there are procedures and actions to be taken if you can hit by one.
- Make a note of when you noticed the fraud, the people you met and locations visited in the last few days.
- Immediately inform your credit card issuer of the irregular transaction.
- File a complaint with the local police.
- Check your credit agreement. By law, your agreement will contain a part that will explain your maximum liability in case of stolen, lost or unauthorised usage of your credit card.
- Inform the two credit bureaus, Equifax Canada and TransUnion Canada on the irregular credit transaction. This is important as a fraudulent transaction can have a negative impact on your credit report and credit score. This will result in the perception that you are a risk borrower and affect your future financial transactions.
- Immediately change your PIN number.
- As an additional action, you can report the fraud to the Canadian Anti-Fraud Centre.
Most banks and lenders should be following Code of Conduct for the Credit and Debit Card Industry. This code holds cardholders non-liable for the loss of their card due to ‘circumstances beyond their control’. The cardholder won’t be held responsible if:
- the card was reported as lost or stolen in a reasonable amount of time
- the card had expired or been canceled
You should find out if your card has a ‘zero-liability’ for an authorized use. Visa and Mastercard has a zero-liability policy, wherein if your card has been stolen or lost, or there is an unauthorized transaction, then you will be reimbursed for the amount purchased maliciously.
In today’s world which is highly dependent on technology, fraudulent practices are increasing. Prevention is better than a cure. A few simple methods will go a long way to protect you from it. Always make sure your banks deliver your documents safely. Never give out your PIN number through the phone or email, even if the speaker claims to be from the bank. Keep your eyes on the credit card at all times when swiping to make sure it is not swiped on any other gadget.
