Credit card fraud - Canada.ca (2024)

How credit card fraud happens

Credit card fraud happens when someone steals or uses your credit card or credit card information without your permission.

Your information or your card is used to:

make a purchase in a store or at a payment terminal
make a purchase or transaction online
withdraw cash from an automated teller machine (ATM)
make a purchase or transaction by telephone

A person might steal your credit card information by:

looking for bank statements or information in your trash or mailbox
hacking into computers of companies such as your Internet service company or your gym
installing small devices on payment terminals that record your credit card information when you make a purchase
sending you a fraudulent email or text message asking for your credit card information, also called phishing
asking you to use your credit card on an illegitimate website to make a purchase
accessing your lost or stolen mobile device
pretending to be a bank employee and asking for your credit card information over the phone

Protect yourself from credit card fraud

All credit cards issued in Canada now have a computer chip that makes transactions more secure. The computer chip works with your personal identification number (PIN) to make sure you give permission for each transaction. This helps protect you against fraud if someone steals your credit card.

However, credit cards may also have a contactless feature. This allows you to make purchases up to a certain amount without entering a PIN. Someone who finds or steals your credit card may access this amount.

There are other actions you may take to protect yourself from credit card fraud. Follow these tips to protect your credit card and your personal information.

Keep your PIN safe

Choose a PIN that is hard to guess. For example, avoid using your birthday, Social Insurance Number (SIN), address or telephone number as your PIN.

Protect yourself in public places

Protect yourself from credit card fraud in public places:

keep your credit card in a safe place
limit the number of credit cards you carry with you
hide the keypad with your hand or body when you enter your PIN at an ATM or payment terminal
keep your credit card in sight at all times when making a purchase
report anything you think is suspicious about a payment terminal or an ATM. Contact the business’s head office and your credit card issuer
always keep an eye on your mobile devices and make sure they lock within seconds after using them

Protect yourself at home

Protect yourself from credit card fraud at home:

put a lock on your mailbox. This will prevent someone from stealing your credit card statements or replacement cards
sign the back of a new credit card immediately after you get it
destroy old credit cards that are no longer valid by cutting them up
keep your credit card statements in a safe place
get written confirmation from your credit card issuer when you cancel your card

Protect yourself online

Protect yourself from credit card fraud online:

use only secure websites when sharing personal or financial information or buying something online. Look for websites with addresses starting with “https” or with a padlock image in the address bar
keep your computer firewall, anti-virus and anti-spyware systems up to date
don’t give your credit card information over email
log out of your online banking website as soon as you’re done using it
don’t allow your computer or mobile device to remember your password or banking information like your account number
don’t use public Wi-Fi or public computers to do your online banking or shopping
if you must use a public computer, clear its history and cache when you finish using it

Protect yourself over the telephone

Legitimate credit card companies don’t ask for personal information over the phone. If you’re suspicious of a call, hang up and call back using the number on the back of your credit card. If they confirm they didn’t call, let them know about the situation. This way, they can document it and monitor your account.

Protect yourself from credit card fraud over the telephone:

avoid giving out credit card information over the telephone in public
only give your credit card information to a company you trust
request further information from someone who calls asking for credit card information

Make sure a company is legitimate before giving it your information. If you’re not sure, hang up and contact the Better Business Bureau to check if the company is valid.

Find your Better Business Bureau.

Additional tips to protect yourself

To better protect yourself from credit card fraud, you may also:

make a list of your credit cards with the phone numbers to call in case of theft or loss
never lend your credit card to anyone, not even family members
keep any convenience cheques your credit card issuer gave you in a safe place
report a lost or stolen card to your credit card issuer immediately
review your credit card statement monthly
report any transactions you didn’t make or approve to your credit card issuer immediately
check your credit report at least once a year and immediately report any errors

You may use a mobile device to do your banking from an application or an online banking site. If you lose this device, let your credit card issuer right away. You should also contact your mobile service provider so they can help you de-activate your device.

If you're a victim of credit card fraud

If you think you’re a victim of credit card fraud, contact your credit card issuer immediately. Take note of whom you talked to and when you spoke to them.

You may then proceed as follows:

write down what happened and how you first noticed the fraud
keep all documents that you think might be helpful if the police investigate the fraud
contact your local police service to file a complaint
if you believe a company has been hacked, for example your telephone company, contact them
continue to check your credit card statements to make sure there are no additional fraud charges

Put a fraud alert

You may also contact Canada’s 2 main credit bureaus: Equifax and TransUnion. Ask them to place a fraud alert on your credit report. Ask for a copy of your credit report from each credit bureau. Review them and report any incorrect information.

Learn how to get your credit report.

Report the fraud to the Canadian Anti-Fraud Centre

The Canadian Anti-fraud Centre is jointly managed by the Royal Canadian Mounted Police, the Ontario Provincial Police and the Competition Bureau Canada. It's Canada's central repository for information about fraud.

Contact the Canadian Anti-Fraud Centre.