The use of credit and debit cards is so common these days that it is hard to imagine life without them. However, with this convenience of payment without cash comes the potential that the information contained on the cards can be intercepted and used illegally. By 2008, it was estimated that the number of payment cards in use throughout Canada was approaching 100 million. At that time, losses related to payment cards reached close to $500 million. These losses translated into an approximate $905 loss to the average consumer!
Payment card counterfeiters are becoming increasingly sophisticated and are using the latest computer devices to add stolen information on to fake cards. It is important to remember that despite the sophistication employed to create them, counterfeit payment cards are useless without a victim’s personal banking information to store on them.
Payment card information can be intercepted in a variety of ways. The most common way is when a legitimate cardholder uses the card at either a point-of-sale(POS) terminal or an ATM. Payment card fraudsters will attach a device to the POS terminal or ATM which reads the information recorded on to the magnetic strip of the card. With debit cards, the Personal Identification Number or PIN is intercepted visually. This can be done with a very small ‘pin-hole’ camera or simply by someone looking over your shoulder while you make a transaction.
How do I protect myself?
• Keep your payment cards in a safe place and never lend them to anyone. Lending out your cards is considered by many financial institutions to be a violation of the credit/debit agreement. As a result, you may be solely responsible for any financial loss.
• Memorize your PIN, don’t write it down and don’t share it with anyone! This is considered to be your electronic signature and can grant access to the entire account that is linked to the payment card.
• Protect your PIN. Use your body or your hand to shield the PIN pad from anyone who may be looking over your shoulder.
• Never let the payment card out of your sight during a transaction. Swipe the card yourself if possible.
• Only conduct transactions where you feel secure. If the POS terminal or ATM appears to have been tampered with don’t use it. As well, if something appears odd or unusual about the transaction, notify your financial institution immediately.
