This week RateSupermarket.ca’s writers will be focusing on credit card questions. Ever wondered what to do if your credit card goes missing? Here’s the answer.
According to an RCMP report, 44% of all Canadian credit card fraud is a result of counterfeiting. On average, charges from counterfeiting amount to $1,241 per stolen card. Credit card fraud that is a result of loss or theft totals 21%, with average charges amounting to $700 per account.
What is credit card counterfeit and how is it done?
The most widely used technique is called “skimming” or “phishing”. In this practice, the back of the credit card, where the magnetic strip is found, is copied using a device that is illegally attached to a tampered terminal. More often than not, the retailer doesn’t even know about the skimming. The skimmed data is then attached to phony cards and used until you notice something is wrong.
Lesson: Frequently check your credit card statement to make sure there are no unauthorized charges. It is difficult for frauds to use your card if they don’t know your PIN. Protect your PIN.
Five ways to protect your PIN
- Cover your PIN when entering it in a public space
- Memorize your PIN – don’t put the number on a piece of paper
- Don’t share your number with anyone
- Avoid using easy or obvious PINs
- Create a complex PIN
What to do when you notice your card is missing
According to one major Canadian financial institution, you should report your missing or stolen card immediately. If you do so, your liability will be minimal. Many people worry about the hassle of cancelling and replacing their cards. Most major financial institutions will replace your card in three business days – sometimes even sooner.
Here’s what to do if you lose your card:
Contact your credit card provider – The sooner you contact them, the better. Your credit card provider will first block your current card from further use. Then they will cancel the card altogether, providing you with a new one shortly thereafter. Take notes during the call. Make sure to write down the name of the person you spoke to, the date and time of your call, any important details, and the file number of your report.
File a police report – Contact your local police and file a report – no matter what the circumstances – whether it was lost, stolen, or fraudulently acquired. Tell the police the locations of your last purchases. This information will help them to track the skimming device, saving others from the same fate as you.
Go over your credit card bills – Have a look over your bills and make sure you recognize all of the charges. According to the Financial Consumer Agency of Canada, many credit card providers have a zero-liability policy on unauthorized transactions. They say, “If your credit card is lost or stolen, or if someone uses your credit card number to make transactions you didn’t authorize, you can usually be reimbursed.”
Check your credit report – You should contact both of Canada’s two credit bureaus – Equifax.ca and Transunion.ca – and ask that a fraud alert be put on your account. Be sure to ask for copies of your credit report and review them for possible inaccuracies.
Make sure to follow up – You’d think that once you’d taken the above steps, you would be in the clear, but you should always follow up. Make sure your rating stays clear. Make sure there are no more unauthorized charges on future bills.
Card Registry Service
RBC offers a complimentary Card Registry Service for its cardholders. The service is extended to all other cards and documents, as well. Simply register your cards with them; if your cards get lost or stolen, report it to the Card Registry Service. They will take care of everything from then on. They will:
- Contact all card issuers for you
- Cancel all cards
- Have new cards issued to you immediately
Check to see if your financial institution offers the same sort of service.
Melanie
Writer for RateSupermarket.ca
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