New type of debit card skimming

Updated from September 2012.

Over 86% of Canadian adults have at least 1 debit card and about 74% have at least 1 credit card. Despite the convenience and popularity of these cards, there is a risk of fraud. It is important to protect your cards, just as you would cash or cheques. Some of the risks associated with debit/credit card fraud are the same as carrying around your account numbers, so protect your card information in your wallet, online and over the phone.

There is, however, another threat to card users that is unique - it's called "skimming." Skimming occurs when thieves set up a device that captures the magnetic stripe and keypad information from point of sales terminals.   It is important to note that debit card fraud has been decreasing in Canada because of the conversion away from magnetic striped to chip cards, but skimming with magnetic stripe cards still occurs.  

Crooks are now trying to get around the CHIP protection by somehow replacing a store/restaurant/gas station’s debit keypad with their own version.  The criminal’s keypad makes you push your debit card in over half of the length of the card so that a scanner can copy the magnetic strip.  The keypad then records your PIN as you enter it.  To combat this keypad switch many retailers are putting locks or other types of protection on the keypads themselves.  

The stores are doing more to protect your information, and by doing the following you can reduce the risk of having your information stolen:

• Check your card as you put it in the chip reader to make sure it only goes in about 1/3 of the way.  If it goes in more than half way the keypad is suspicious.
• Cover the PIN keypad when you are entering your code. This helps block a camera’s or other person’s view of your PIN number.
• Never let the card out of your sight. Watch as the retail person swipes it to ensure they only use the store cash register.
• Check your bank statements immediately upon receipt in the mail. Make sure all payments are yours.
• Regularly check your account balance and transactions by utilizing online banking and mobile banking. 
• Contact your financial institution immediately if your card is lost, stolen or subject to fraudulent use.
• Keep a record of card numbers, PINs, expiration dates and phone numbers so you can contact the issuing financial institution easily in case of theft.
• Memorize your PIN number. Do not use your birth date, address, phone number or social insurance number. Never store your PIN with your card and do not make it available to others.
• Keep your receipts. You'll need them to check your statement. If they have your account number on them, shred receipts before throwing them away.
• Mark through any blank spaces on debit slips, including the tip line at restaurants, so the total amount cannot be changed.
• Know your limits. Many issuers limit daily purchases and withdrawals for your protection.
• Do not use an ATM if it looks suspicious, it could have a skimming device.
• Be wary of those trying to help you, especially when an ATM "eats" your card. They may be trying to steal your card and PIN.
• Do not give your PIN number to anyone over the phone.  Often thieves steal the cards and then call the victim for their PIN, sometimes claiming to be law enforcement or the issuing financial institution.

If the RCMP discovers business has been skimming cards, financial institutions are notified and replace any cards that were used during the skimming period.  While this can create an inconvenience for card users, it helps protect customers and financial institutions from losses due to criminal activity.

By protecting your cards you will be protecting yourself.