Tips to prevent debit card fraud

(NC)—March is Fraud Prevention Month, a national awareness program that informs Canadians about the dangers of fraud and how to prevent it.

“The INTERAC network is among the safest payments systems in the world, however debit card fraud can occur and that's why we're involved in educating Canadians about steps they can take to protect themselves,” said Tina Romano, Interac Association.

Debit card skimming is the unauthorized copying of electronic data from a debit card. Hidden equipment, such as card reading devices and pin-hole cameras are installed on ABMs or at retail locations to collect the card data and PIN of unsuspecting cardholders. The stolen data is then copied onto counterfeit cards, and used to withdraw funds without the knowledge of the cardholders.

Over the next couple of years, Canadians will be receiving new debit cards from their financial institution that contain an embedded microchip. The microchip puts the power of a computer onto the debit card, enabling the card to carry out additional security checks and prevent the production of counterfeit cards. Migration to chip technology represents an evolution of the electronic payments system that will make an already safe system even more secure.

“The PIN will continue to play a key role in the security of your chip debit card, so keeping your PIN secure remains an important role in preventing debit card fraud today and in the future,” said Romano.

Following are some debit card safety tips to help prevent debit card fraud:

1. Use your hand or body to shield your PIN during every transaction conducted at an Automated Banking Machine (ABM) or at the checkout.

2. Keep your debit card in sight when conducting transactions at the checkout.

3. Check your banking statements regularly and contact your financial institution immediately if you detect any unusual activity, for example purchases you did not make or missing charges.

4. Notify your financial institution immediately, if your debit card is lost, stolen or retained by an ABM.

5. Memorize your PIN - only you should know it. If you suspect that someone knows your PIN, even a friend or family member, change it immediately.

6. Select a unique PIN. Never use obvious information, such as, your telephone number, date of birth, address or Social Insurance Number. These numbers are often stored in the same place as your debit card enabling criminals to easily guess your PIN.

Retailers can play a role in preventing debit card fraud and protecting their customers by being aware of their surroundings and regularly inspecting their devices. Following are some tips retailers should follow:

1. Treat your PIN pads like cash. Keep PIN pads out-of-sight when not in use.

2. Check your PIN pads regularly for anything unusual.

3. Remind your customers to protect their PIN when entering it.

4. Talk to your payment service provider about other steps you can take to prevent fraud from happening at your location.

In the instance of debit card fraud, cardholders are protected by the Canadian Code of Practice for Consumer Debit Card Services, under which victims of debit card fraud will not suffer any financial losses.

More information about debit card safety and chip card technology is available online at www.interac.ca.

Source: www.newscanada.com
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