In order for fraud to occur, a thief needs both your
PIN and the magnetic stripe information on the back
of your card. The PIN is not stored on the cards magnetic
stripe. So, if your card is stolen or duplicated, the
thief has to find some way to get your PIN. Common methods
used to steal or duplicate cards and obtain the PIN
are:
- Easily identified PINs - Your purse or wallet
is stolen and the thief finds your PIN written down
somewhere close to your card, or, successfully tries
a commonly used PIN, such as your birth date, based
on information found in your wallet. In this instance,
you could be liable for your loss.
- Surf and Pick Pocket - A thief watches as
you enter the PIN and subsequently distracts you and
steals your debit card. If you are a proven victim
of such a fraud, your losses would be covered by your
financial institution.
- Card Jam - Various devices are used to jam
your card in the bank machine. After your card becomes
jammed, a helpful stranger suggests that you try to
input your PIN a few times, but the card remains stuck.
After you leave, they remove your card and have your
PIN. Again, if you are a proven victim of such a fraud,
your losses would be covered by your financial institution.
- Skim and Clone (Transaction is sent to the financial institution) - There have been cases of
equipment being set up at a business to illegally
collect your PIN and card information. For example,
when you hand over your card to make a purchase, the
card is run through a device that sends your magnetic
stripe information to the financial institution. The
person then swipes the card a second time to record
the information into a hidden device which allows
them to make a duplicate of the card. At the same
time, a camera records your PIN information. In these
cases, if you are a proven victim of such a fraud,
your losses would be covered by your financial institution.
- Bogus machines (Transaction is not sent to the financial institution) - A
bogus machine, that replaces the real PIN Pad, lifts your card and PIN
information and issues a transaction receipt but does not actually send the
transaction to the FI. The implicated employee covers your purchase by
putting cash in the till so that the owner is unaware of any fraud since the
outlets books balance. At a future date, the employee uses the stolen data
to create a card to empty the funds from your bank account. The evidence of
the fraud could be that you have a transaction receipt (if indeed you
received one) for a purchase but the purchase does not appear on your bank
statement. In these cases, if you are a proven victim of such a fraud,
your losses would be covered by your financial institution.
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![A thief watches as you enter the PIN and subsequently distracts you and steals your debit card.](/web/20060214022716im_/http://strategis.ic.gc.ca/epic/internet/inoca-bc.nsf/vwimages/ca01834e.jpg/$FILE/ca01834e.jpg)
A thief watches as
you enter the PIN and
subsequently distracts you and steals your debit
card.
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