Credit card fraud is a prevalent type of identity theft in Canada. According to the Canadian Anti-Fraud Centre (CAFC), thousands of Canadians fall victim to credit card fraud each year, with losses amounting to millions of dollars. A recent report revealed that over 70% of credit card holders in Canada have experienced credit card fraud, with many facing fraudulent charges multiple times.
While credit card fraud remains a significant issue, new defences are continually being developed to protect consumers. Here are ten tips to help you secure your credit card from unauthorized use:
1. Use Strong Passwords
You’ve probably heard this one before, but it merits repeating. Use a strong password for each website you log in to.
According to the Canadian Centre for Cyber Security, a strong password:
- Is at least 12 characters long
- Consists of random, mixed-case letters, numbers, and symbols, or several unrelated words
- Is unique to the account
Using these principles, you’ll have many unique passwords for your accounts. For example:
- Bank: X9!zQ6&kL#72A$d9T*01
- Credit card: Jumper1BlueberryLightning$Road4Nectar
- Email: PlanetJazzElephantSunriseLightbulbCanyon
Once you’ve established strong passwords, remember to update them regularly. Even the strongest passwords can be compromised.
Pro Tip: Use a password manager to keep track of your passwords. A password manager creates, stores, and inputs your passwords, enhancing your online security by identifying weak or repeated passwords, generating strong ones, and auto-filling your credentials across sites and apps.
2. Avoid Logging into Financial Accounts While Using Public Wi-Fi — or Use a VPN
You don’t have control over public Wi-Fi networks. If a network you’re on is compromised, your data is at risk. Studies show that many Canadians have had their information stolen while using public Wi-Fi, with common locations being cafes, airports, and hotels.
Avoid making sensitive transactions over public Wi-Fi to prevent your credit card information from being intercepted. Alternatively, you can use a virtual private network (VPN). A VPN keeps your online activity private and conceals your identity while surfing the web.
3. Don’t Provide Credit Card Information Over the Phone Unless You Made the Call
Don’t share your credit card number with an unexpected caller. Scammers often attempt to steal personal information over the phone by pretending to be from a legitimate business. For instance, they might claim to be from your bank and say your account has been compromised.
These scams can be very convincing. Scammers use social engineering tactics to get you to act quickly without thinking. If you receive one of these calls, don’t provide any personal information. Instead, hang up and contact the institution directly using the official contact information.
4. Don’t Click on Unsolicited Links
Scammers can trick you into providing credit card details through phishing texts and emails, posing as trustworthy entities like your bank. They may replicate logos and formatting to appear legitimate, using common phishing scams like suspicious account activity or lost package notifications.
If you receive a suspicious text or email, do not click on any links or reply. Mark it as spam. Contact your financial institution directly using the contact information on your credit card to verify unexpected communications or report fraud.
5. Sign Up for Paperless Account Statements
Not all credit card theft is high-tech. Fraudsters can sift through your trash to retrieve sensitive information like credit card offers and bank account details.
To protect against this, sign up for paperless billing with your financial institutions to keep sensitive information from your trash. If you need to discard paper documents with personal information, shred them using a quality shredder.
6. Monitor Your Accounts and Your Credit Report
Criminals often start with small purchases to ensure the card is active and the theft goes undetected. Checking your account regularly can help detect fraudulent activity that may have slipped through your financial institution’s fraud detection system.
In addition to checking your account activity, review your credit report regularly. In Canada, you can check your credit reports from Equifax and TransUnion for free once a year. This review can help you detect fraud and identity theft before significant damage is done.
7. Look for the Lock Symbol in Your Browser Bar and “HTTPS” in URLs
When shopping online or accessing financial accounts, ensure the site is encrypted. An encrypted site means the information between the website and your computer is scrambled so no one else can see it.
You’ll know a website is encrypted if there’s a lock icon in the browser bar and “HTTPS ” in the URL.
Pro Tip: A lock icon does not indicate that the site is trustworthy. It just means the site is encrypted. Use good judgment and remain vigilant.
8. Choose Tap to Pay
Using tap-to-pay is more secure than inserting your card into a card reader. When you tap to pay, a chip in your card creates a one-time code that replaces your account information. Using tap-to-pay prevents your account information from being intercepted.
Conversely, when you swipe your card, your payment and personal information are collected, and a skimming device on a card reader could easily capture enough information for someone to commit credit card fraud.
9. Use a Mobile Wallet
Mobile wallets like Apple Pay and Google Pay work like tap-to-pay, creating a one-time encrypted code for each transaction in place of your credit card information. Even if intercepted, your credit card information remains safe.
10. Sign Up for Two-Factor Authentication Whenever Possible
Two-factor authentication is a security process where a user provides two different authentication factors to verify their identity, typically a password and a one-time code sent via text or email. Some credit card companies use this to verify transactions before completion.
Stay Vigilant
Despite evolving security measures, credit card fraud remains rampant. If you’re like most Canadians, it’s already happened to you. But you can still do a lot to make yourself a less desirable target. Use strong passwords, check your credit report, choose more secure payment methods, enable two-factor authentication, and follow other cybersecurity best practices to safeguard your finances.
If you become a victim of fraud, report it to the CAFC. Your information could help shut down a future con game.
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