What is fraud?
In the credit card world, fraud is generally defined as any transaction that was not authorized by the cardholder or an authorized user. These transactions can occur in a number of different ways, as described below.
Lost or stolen card – You, the cardholder, are no longer in possession of your card after having lost the card at an unknown place or time or after realizing that your card was stolen from your purse, wallet, home, office, etc. Fraud occurs when the lost or stolen card is subsequently used without your permission.
Non-receipt – You did not receive a new or replacement card that was sent to you by your credit card company. You may have no idea that the card went missing until you receive a statement listing transactions not made by you.
Fraudulent application – Your personal information is used by someone else to apply for a credit card in your name without your permission. Personal information may include your name, address, Social Insurance Number, and date of birth.
Counterfeit – You’re in possession of the card issued to you by your bank, but transactions appear on your account statement that were not made by you. This could be an indication that a counterfeit card bearing your account number is in circulation and is being used at the same time that you’re making legitimate purchases. This type of fraud is sometimes referred to as “skimming”.
Account takeover – You’re in possession of your card and somebody posing as you “takes over” your account by requesting a replacement card on the same account, usually to be mailed to a different address. You would not have any knowledge that this has been done until you receive an account statement showing transactions not made by you or you fail to receive your monthly account statement.
No card present – You’re in possession of your card and somebody has made transactions using the card number only, usually in the form of mail orders, phone orders, or Internet transactions. You may not know this has been done until you receive an account statement showing mail, phone, or online transactions not made by you.
Email/SMS/Phone Phishing – You receiving fraudulent e-mail or communications, also known as phishing or brand spoofing. Fraudulent communications generally ask customers to select a link or call a number, leading them to a fraudulent site that looks like a legitimate financial institution's web site — even duplicating logos and text. Customers are asked to enter account or personal information.
- When others use your information to attempt to obtain credit or access your account. Protect your personal information by shredding unwanted personal documents such as transaction records, credit applications, insurance forms, cheques, financial statements, and tax returns.