Credit card fraud means someone has used your credit card without authorization to make unauthorized purchases or withdraw funds from your credit account. Thieves can steal your physical card, hack into your account online, or even skim your credit card information from a bank machine or gas pump. No matter how you’ve become the victim of credit card theft, you can certainly get the police involved.
Key Points:
- If your credit card has been used fraudulently, you should report it to the police.
- However, the police may not necessarily conduct an investigation; instead, this may be done by the credit card issuer.
- If you’re the victim of credit card fraud, report it to your creditor and the police to hold the thief accountable.
What Is Credit Card Fraud?
Credit card fraud is when an unauthorized person illegally uses your credit card or its information to make purchases or access money. There are different approaches to committing the offense, including the following:
Card Theft/Loss
When a card is stolen or lost, and funds are taken from the card, this becomes credit card fraud. This is why it is particularly important to continually monitor your credit account and promptly cancel your card if you suspect theft.
Card-Not-Present Fraud (CNP) Fraud
This occurs when the card details are entered over the phone or online. Funds are taken without the actual account holder being in control of the purchase. With the prevalence of e-commerce, the likelihood of this issue increases.
Counterfeiting
Should the details of a credit card be taken and then used to create a fraudulent card, this is classed as counterfeiting. While one of the less prevalent types of fraud, skimming devices can take card details in passing.
Mail Interception
If a card is ordered by a consumer and is intercepted before arrival, then used, this counts as an arrival-failure type of fraud. It is important to track the status of incoming cards; and, should it be significantly delayed, investigate immediately.
Application Fraud
Many credit card applications are digital, which can lead to application fraud. This is when someone uses the personal and financial details of another individual to take out a credit card. It can result in severe damage to the victim’s credit profile.
What Are Red Flags Of Credit Card Fraud?
Pay attention to the following warning signs of potential credit card fraud:
- Unfamiliar charges on your credit card statement.
- Notifications from your bank or credit card provider about suspicious activity.
- Your credit card is declined for seemingly no reason, possibly due to being blocked after suspicious activity.
- Missing credit card statements or communication from your credit card issuer, which could mean someone changed your address with your provider.
What Can You Do If You’re A Victim Of Credit Card Fraud?
If you’ve been subject to credit card fraud, there are a few things you can do, including the following:
Call Your Credit Card Agency
Among the first steps to take if you are the victim of fraud is to immediately contact the agency which holds your credit account directly. Inform them of the false transaction(s). Note the amount, date, and time for ease of reference.
Provided you address the issue promptly, the credit card company will open an investigation into the incident and immediately cancel your card. Generally speaking, you won’t be held financially responsible for unauthorized charges.
Report Fraud To The Canadian Anti-Fraud Center
Another diligent step to take is to swiftly report the fraudulent incident directly to the Canadian Anti-Fraud Centre. This association assists in preventing fraud and has structured approaches to handling reports. It works in conjunction with the RCMP, the Ontario Provincial Police, and the Competition Bureau of Canada.
- Purpose Of Filing: The Anti-Fraud Center collects and disseminates information relating to both ongoing and historic scams. By submitting your report, you can actively assist the agency in gaining the necessary details to stop future fraud. They can also provide you with further resources to assist you in recovery.
- How To File A Report: When filing a report, you can use the online tool with either a GC Key (an authentication service provided by the federal government) or a relevant sign-in partner, usually your bank. Alternatively, you can call the toll-free phone number (1-888-495-8501) during business hours.
Place A Fraud Alert On Your Credit Report
An important step to protecting your credit profile and financial well-being is to immediately put a fraud alert on your credit report. This way, you are not held responsible, financially or otherwise, for unauthorized charges.
You can do this by contacting both credit bureaus, Equifax and TransUnion. The two hold information separately, so you must be sure to talk to both.
Once you get in touch with the credit bureaus and verify your identity, they will place a fraud alert on your credit account. In addition to flagging the account for suspicious behaviour, the agencies may offer you supplemental advice, such as to flag the matter with your bank. Be sure to follow the recommendations to the letter. It is prudent to alter your passwords for any online.
Should You File A Report With The Police?
Since credit card fraud is a crime, you should inform the police. In fact, the Canada Anti-Fraud Centre recommends that you file a police report. Identify the local police department in your area, whether that is a municipal force or the RCMP, and contact their administrative line directly.
The police will open a file to address the complaint. It keeps an official record of the issue. If it occurs again, be sure to keep the police up-to-date. This facilitates law enforcement in stopping future crime.
Do Police Investigate Credit Card Fraud?
Generally, the police do not involve themselves directly in these kinds of matters. You will likely be directed to speak with your credit card agency directly, or to the credit bureaus. Nonetheless, since fraud is so far-reaching, it is important to report the fraud to assist with larger cases.
Penalties For Credit Card Fraud In Canada
As a criminal offense, the penalties for credit card fraud are set forth by the Criminal Code of Canada. Matters are assessed on an individual basis, though there are some standards in place which are used as guidelines. These include:
- Fines: If an individual possesses a forged or stolen credit card (or is actively using a cancelled card) there is the potential for a $5,000 fine. While fines are a possible legal recourse, it is not the only option. Therefore, the fine will not necessarily apply.
- Imprisonment: A jail sentence of six months may be placed instead of the above-noted fine. In certain situations, both the fine and minimum jail sentence are ordered. For a more severe offence, and if it is classed as an indictable felony, a maximum of 10 years of jail time can result.
How To Protect Yourself From Credit Card Fraud
While fraud is frightening, there are simple steps you can take to preserve your credit and financial well-being. These include:
- Checking Your Credit Report Regularly: Look into your credit report directly from TransUnion and Equifax at least once yearly. Ensure that all the charges are accurate. If you suspect foul play, notify the credit bureaus, creditors, and even the police if necessary.
- Keeping Your PIN And Passwords Safe: It is important to never share your passwords or your PIN. This offers a basic level of security and prevents many issues if your card is lost or stolen.
- Use Your Information Responsibly: In general, do not issue personal information over the phone or the internet. This includes your date of birth, Social Insurance Number (SIN), credit card details, and address. If concerned about providing this information, check the party’s credentials, and either call back or return to the website when you are certain of its ethical nature. It’s always best to be cautious.
Final Thoughts
Now that you have a better understanding of the nature of credit card fraud, you can be prepared for the possibility. While the police don’t usually directly act in most credit fraud scenarios, they play an important role in managing it.
