Debit/Credit Card Fraud

Payment card fraud can be difficult to detect, as criminals may have additional pieces of ID that identify them as the true owner of the card.  For example, the criminal may also have the birth certificate of the cardholder, or other pieces of ID that don't use photographs.  It is also common for criminals to carry forged identification.

There are a number of ways to prevent unauthorized purchases from being made:

BUSINESSES SHOULD:

• check secondary identification (i.e. driver's licence, or other photo ID).  When checking identification, look for indications that it has been altered in some way.  The person with the stolen credit card may also have stolen identification or obtained fake identification.
• compare signatures of the signed credit slip to the signature on the credit card, and to that of the secondary ID.
• be careful when accepting credit card numbers over the phone.  Credit card numbers should be verified and (whenever possible) backed up with a signature check and secondary piece of identification.
• follow all instructions and procedures provided by the payment card companies.

If you suspect fraud write down a description of the person and other details, such as the type of car they were driving and their licence plate.

CONSUMERS SHOULD:

• avoid carrying more credit cards than necessary.  If you don't plan to use a card, don't carry it with you.
• report lost and stolen credit cards immediately to the financial institution and/or credit card company.  Payment cards can be cancelled preventing a criminal from using your card.
• refrain from writing down and carrying the P.I.N. (Personal Identification Number) of your card.
• change your P.I.N. frequently
• keep all payment card receipts, and compare to your monthly credit statement.  This will enable you to see if unauthorized purchases have been made.  Once compared, keep or shred the receipts and your monthly statement.  Since the credit card number appears on the statement and receipts, someone who obtains one of these from your trash can potentially make purchases using your card number.
• avoid giving payment card numbers to telemarketers.  Don't give telemarketers your payment card numbers, unless you are sure they represent a reputable company and/or initiated the call.  Con artists may contact you claiming to represent an organization so they can get your credit card information.

Remember that criminals don't need the payment card itself, only the card numbers.  With the numbers, a criminal could make purchases over the phone, through mail order, or online from Internet e-commerce sites.  If a criminal is experienced enough and has the proper equipment, a new card could be created from the stolen information.  For this reason, it's important that you protect your payment card information just as you would the card itself.

Report lost and/or stolen payment cards immediately.  Suspicious or unauthorized transactions should be reported directly to your financial institution or credit card company before contacting the police.  This will help determine if an error was made or fraud has been committed.