{"id":774138,"date":"2019-04-18T01:31:16","date_gmt":"2019-04-18T05:31:16","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?page_id=774138"},"modified":"2026-04-14T22:32:09","modified_gmt":"2026-04-15T02:32:09","slug":"credit-card-fraud-traps-and-scams-guide","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/credit-cards\/credit-card-fraud-traps-and-scams-guide","title":{"rendered":"How to identify credit card fraud, traps and scams"},"content":{"rendered":"

Credit card fraud in Canada stirs financial anxiety in many individuals. According to a survey by CPA Canada, 86% of respondents reported that they were aware of credit card fraud in 2019 and nearly 39% refused to use their credit card with certain vendors for fear of credit card fraud. In this guide, we’ll explore how to identify and avoid credit card fraud.<\/p>

What is credit card fraud?<\/h3>

Credit card fraud occurs when an individual obtains someone’s credit card information and uses that information to make an unauthorized purchase. To commit credit card fraud, the individual does not need to steal the physical credit card<\/a>; they only need the card information since it can be used to make a purchase online.<\/p>

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“Everyone who steals a credit card, forges or falsifies a credit card, uses or traffics in a credit card or a forged or falsified credit card, or uses a revoked or cancelled credit card is guilty of an indictable offence and is liable to imprisonment or punishable on a summary conviction.”<\/p>

– Criminal Code of Canada, section 342(1)<\/p>\n<\/div>\n

In Canada, credit card fraud is a punishable crime. The Criminal Code of Canada states that credit card fraud includes the following:<\/p>

  • Theft<\/li>
  • Forgery<\/li>
  • Falsification<\/li>
  • Wrongful possession of other people’s credit cards with the intent to commit fraud<\/li>
  • Usage of equipment or software designed to steal credit card information (such as a PIN)<\/li><\/ul>

    4 common types of credit card scams<\/h3>

    There are various ways that people can obtain the credit card information needed to commit a credit card scam. Some of the most common methods include:<\/p>

    1. Calls from the “fraud department.”<\/strong> Scammers will call and impersonate representatives from a credit card fraud department. In order to “stop fraud,” they’ll ask for your credit card information.<\/li>
    2. Phishing.<\/strong> These are emails or text messages that appear to be from legitimate businesses or entities that ask for your credit card information.<\/li>
    3. Card skimmers.<\/strong> These are small, plastic machines that are hooked up to ATM or gas pump card readers. They have the same scanner as actual card readers and are challenging to detect.<\/li>
    4. App skimmers.<\/strong> Similar to card skimmers, skimming apps can read digital credit card data. In order for app skimmers to work, the sensors must be physically close to your phone or device. However, it can read through pockets or purses.<\/li><\/ol>

      Credit card fraud detection indicators<\/h3>

      If you have fallen victim to credit card fraud, you may experience one or more of the following credit card fraud detection indicators:<\/p>

      • Unknown inquiries.<\/strong> Every time you apply for new credit, an inquiry will appear on your credit report after the lender checks your credit score. If you notice inquiries or new accounts that aren’t yours on your credit report, you may be a victim of credit card fraud or identity theft.<\/li>
      • Unknown transactions.<\/strong> If you notice purchases on your credit card that you didn’t make, someone may have used your credit card to commit fraud.<\/li>
      • Fraud alerts.<\/strong> If your credit card issuer is sending fraud alerts, an unauthorized individual may have used your credit card.<\/li><\/ul>

        How does someone obtain my credit card information?<\/h3>

        There are a number of ways a fraudulent individual can obtain your credit card information:<\/p>

        • Hacking into the computers of individuals or companies to steal credit card information<\/li>
        • Sifting through your garbage or mail to locate credit card statements, banking information or other personal details<\/li>
        • Phishing by using an email that appears to be from a real business to ask for credit card information<\/li>
        • Swiping your credit card in a device that copies the information stored on the magnetic stripe<\/li>
        • Installed devices on payment terminals that record credit card information
          Any communication asking you to use your credit card to make a purchase on an illegitimate website<\/li><\/ul>