Your Rights and Responsibilities: Debit card fraud

Debit card fraud

If you are a victim of debit card fraud, it is usually up to the financial institution to prove that you are responsible for the charge, and not the other way around. Financial institutions will usually cover any losses if you have taken the appropriate steps to protect your card and your personal identification number (PIN). These steps are as follows:

• Never disclose your PIN to anyone, including family, friends, financial institution employees or law enforcement agencies.
  
  
• Keep your debit card in a safe place and never lend it to anyone.
  
  
• If you suspect that someone knows your PIN, change it immediately and contact your financial institution.
  
  
• Memorize your PIN. If you must write it down, make sure it is well disguised and not kept in the same wallet, purse, etc., that contains your card.
  
  
• When selecting a PIN, do not use obvious information. You may be liable if you use your name, address, telephone number, date of birth or social insurance number for your PIN.
  
  
• Check your balance and account statements frequently to verify that all of your transactions have been properly recorded.
  
  
• If your card is lost or stolen, or retained by an automated banking machine (ABM), or if you find that there has been an unauthorized transaction made with your card, notify your financial institution immediately.
  
  

If your financial institution informs you that it is not prepared to cover your losses, ask to speak with the branch manager. If the matter cannot be settled at the branch level, ask for information about your financial institution's complaint-handling process.

If you are having difficulty finding out about your institution's complaint-handling process or you are experiencing problems using it, or if you believe that your financial institution has not lived up to the Canadian Code of Practice for Consumer Debit Card Services, contact FCAC.

The Canadian Code of Practice for Consumer Debit Card Services — which helps protect consumers in Canada who use debit card services — outlines industry practices and consumers' and the industry's responsibilities with respect to debit cards.

During the dispute-resolution process, financial institutions have agreed that cardholders should not be unreasonably restricted from using funds that are the subject of a dispute. Debit card-issuing institutions have agreed to respond to a cardholder's report of an unauthorized transaction within 10 business days, not counting the time it takes for the consumer to supply a written statement or an affidavit, if requested to do so by the institution.

Here are some additional safety tips when using your debit card:

Use your hand or body to shield your PIN when you are making transactions at an ABM or a point-of-sale terminal.

Only make transactions when and where you feel safe.

Never let your banking card out of your sight when you make a transaction.

If you find any unauthorized transactions:

Notify your financial institution's branch or telephone banking call centre immediately and make sure you are able to tell the bank the amount and date of the fraudulent transaction. The bank may be able to explain the transaction and, if it is fraudulent, will be able to tell you what to do next. Keep all of the documents that provide evidence of the fraud. Record the name of the person you spoke to at the bank, as well as the date and time you called.

Report the loss to all two credit-reporting agencies so that they can help guard against anyone from applying for credit in your name.

Report the situation to the police, and record the police report number.