Credit Card Fraud: How to Protect Yourself and What to Do If It Happens

Credit card fraud can happen to anyone — through data breaches, skimming devices, phishing messages or lost cards. While card issuers typically protect you from unauthorized charges, acting quickly is important. Here is how to protect yourself and what to do if your card is compromised.

Common Types of Credit Card Fraud

• Card-not-present fraud: stolen card details are used to shop online or by phone.
• Skimming: devices hidden on card readers, gas pumps or ATMs copy your card information.
• Phishing: fake emails, texts or calls pretend to be your bank and ask for your details.
• Lost or stolen cards used before you notice they are missing.
• Account takeover: criminals gain access to your online banking or change your contact information.
• New account fraud: someone opens a new card in your name using stolen personal information.

Warning Signs

• Purchases you don’t recognize, even small ones — fraudsters often test cards with tiny charges
• Alerts about password changes or new devices you didn’t add
• Missing statements or unexpected changes to your mailing address
• Calls from collectors about accounts you never opened

What to Do Immediately

1. Call your card issuer using the number on the back of your card or on the official website — not a number from a suspicious message.
2. Lock or cancel the card. Many banking apps let you lock a card instantly.
3. Review recent transactions and report every charge you didn’t make.
4. Change your online banking password and turn on two-step verification.
5. Check your credit reports with Equifax and TransUnion for new accounts you didn’t open.
6. Report fraud to the Canadian Anti-Fraud Centre and, if your identity was stolen, to your local police.

Are You Responsible for Fraudulent Charges?

Major card networks and issuers in Canada generally offer zero-liability protection for unauthorized transactions, as long as you took reasonable care of your card and PIN and reported the problem promptly. Check your cardholder agreement for the exact terms.

How to Reduce Your Risk

• Turn on transaction alerts so you are notified of every purchase.
• Never share one-time passcodes — your bank will never ask you for them.
• Use tap or chip rather than swiping, and cover the keypad when entering your PIN.
• Shop on secure websites and avoid saving your card on sites you rarely use.
• Use strong, unique passwords and a password manager.
• Be suspicious of urgency — scammers create panic to make you act fast.
• Shred documents that contain account information.

The Bottom Line

You can’t prevent every fraud attempt, but you can make yourself a much harder target and limit the damage. Turn on alerts, protect your passwords and codes, and contact your issuer immediately if something looks wrong.

This article is for general information only and is not financial or legal advice.