Where There’s a Wallet, There’s a Way

Written by Cassie Licari & Dominique Houle on 25/01/11

Photo by MatthewSBOC on Flickr

Opening that envelope from the bank containing a shiny new debit or credit card is certainly an exciting time. Everyone gets a little tingle in their stomach and green dollar signs in their eyes! Even though this can be an exhilarating moment, there are some things every debit or credit card user should keep in mind.

Lock It Up!

Your debit card is used by swiping your card or inserting your chip into a machine, followed by you entering in your personal identification number (PIN) to pay for your items. You may think this is completely safe, but there are ways that some people try and steal money from your account, and this is called debit card fraud. It can happen many different ways, one being by copying your private account information when you swipe your card through a machine. They may then watch you enter your PIN, or have a way to track your PIN when you enter it into the debit machine. With this information, they can make duplicates of your debit card and use them to buy things or to withdraw money from your account. In 2009 alone, $142.3 million dollars from citizens was lost to debit card fraud (RCMP). So here are some things to consider to help prevent your hard-earned money from being added to this statistic:

• When selecting a PIN, always avoid the obvious: your name, telephone number, date of birth, address, etc. Also, always monitor your spending whether its online or through regular bank statements. You can then see if there is any irregular activity in your account.
• Keep your card in a safe place and never lend it to anyone. Protect your PIN by memorizing it – don’t write it down or tell anyone what it is. A helpful idea when thinking about how to protect your debit and credit card is to treat them like cash. I wouldn’t leave my cash just sitting on my desk at school or on the break room table at work – I would want it tucked away in a safe place. Also, no one from a legitimate bank, police service, or business should ask for your PIN out loud.
• To ensure privacy, use your hand or body as a shield to prevent others from seeing you enter your PIN.
• If you are ever shopping online, make sure you only use websites that are reliable and have the lock symbol on the webpage. For more information about this, click here.
• If your card is lost or stolen, talk to your parents and notify your bank immediately. Most institutions offer 1-800 telephone numbers and/or 24-hour service for lost or stolen cards.

To see more helpful tips, click here.

Learning about debit and credit card fraud is a smart way to make sure we protect ourselves when buying the things we want. For more information visit the links below.

RCMP: Credit Card Fraud
RCMP: Debit Card Fraud
RCMP Safety Tips

Tips from some financial institutions:

Canadian Imperial Bank of Commerce (CIBC)
Royal Bank of Canada (RBC)
Toronto-Dominion bank (TD Canada Trust)
Bank of Montreal (BMO)
Bank of Nova Scotia (Scotiabank)
Alterna Bank