How to avoid bank card fraud?

Bank cards have become an integral part of everyday life for Calgary residents, allowing them to make purchases quickly and conveniently, withdraw cash from ATMs, and conduct online transactions. However, this growth in digital payments has been accompanied by an increase in fraudulent schemes aimed at stealing card information and unauthorized use of bank accounts. In 2024, the Calgary Police Service received more than 9,800 calls regarding various types of fraud, a significant portion of which were related to bank cards. Fraudsters are constantly improving their methods, using both high-tech devices and psychological manipulation to deceive unsuspecting users.

Modern bank card fraud schemes can take many forms, from physically installing skimmers on ATMs to sophisticated telephone scams where criminals pose as bank representatives. In Calgary, distraction thefts are particularly common, where fraudsters first observe the victim entering their PIN code and then distract them to steal the card. Equally dangerous are phone calls from fake bank employees who convince victims to hand over their cards to a courier under the pretext of “fraud protection.”

Understanding modern threats to bank cards

Bank card security technologies have improved significantly with the introduction of chip technology and contactless payments, but fraudsters have also adapted to these changes. Skimming remains one of the most common threats, especially in shopping centers and gas stations. A skimming operation was discovered at the CrossIron Mills mall near Calgary, where criminals installed devices on payment terminals in several stores. These devices are capable of reading information from the magnetic strip of a card and recording the PIN code through hidden cameras or keyboard overlays.

Modern skimmers are becoming increasingly sophisticated. Some are so thin that they fit inside a card reader, making them virtually invisible to ordinary users. In addition, many devices are equipped with Bluetooth technology, allowing fraudsters to collect data remotely without returning to the installation site. After collecting the information, criminals create fake cards or use the stolen data for online purchases.

Telephone fraud has also evolved, using caller ID spoofing to imitate calls from banks. Fraudsters may know personal information about their victims obtained from data leaks or social networks, which makes their calls more convincing. They create a false sense of urgency by claiming that the victim's card has been compromised and requires immediate action.

Safe use of ATMs and payment terminals

When using ATMs, always assess your surroundings before approaching the machine. Avoid ATMs in poorly lit or isolated areas, especially at night. Choose ATMs located in bank branches, shopping centers, or other crowded places with good visibility and video surveillance cameras. If you are using a drive-through ATM, make sure all car doors are locked and windows are rolled up.

Before inserting your card, carefully inspect the ATM for suspicious devices. Skimmers often have a different color, texture, or look too bulky compared to the rest of the machine. Pull on the card reader—if it moves or seems loose, do not use that ATM. Also check the keypad for overlays or cameras pointing at the PIN entry area.

When entering your PIN, always cover the keypad with your other hand or body, even if no one is nearby. Hidden cameras can be installed in the most unexpected places, including fake brochure holders or decorative elements. After completing the transaction, immediately take your cash, card, and receipt. Do not count your money at the ATM — do it in a safe place.

If an error occurs during the transaction or your card gets stuck, do not accept “help” from strangers, especially if they offer to enter your PIN. Contact your bank at the number listed on the ATM or call your bank's hotline.

Protection against telephone and online fraud

Banks never call customers to request personal information, PIN codes, or card details. If someone calls claiming to represent your bank and asks for such information, hang up immediately and call the bank directly at the number on the back of your card. The Calgary Police Service emphasizes that police officers will also never contact citizens to request money, cryptocurrency, or gift cards. Be especially wary of offers to send a “courier” to pick up a “compromised” card. This scam has become particularly prevalent in Calgary, where fraudsters convince victims that their cards have been compromised and offer to send a courier to pick them up. In some cases, the losses have exceeded $60,000. No legitimate bank or financial institution will send a courier to pick up cards.

To protect yourself from online fraud, only use official bank websites by entering the URL directly into your browser. Avoid clicking on links in emails or SMS messages, even if they appear legitimate. Enable two-factor authentication on all bank accounts where possible, and prefer authenticator apps over SMS.

Never use public Wi-Fi to access banking services. If you need to check your account while away from home, use your phone's mobile internet or a reliable VPN to secure your connection. Public Wi-Fi networks in cafes, airports, or hotels may be compromised by hackers who can intercept your logins and passwords.

Advantages of contactless payments and how to use them safely

Contactless payments, including tap-to-pay cards and mobile wallets, are actually more secure than traditional magnetic stripes. Each contactless transaction generates a unique cryptographic code that cannot be copied or reused. Even if a fraudster somehow intercepts the signal, the information obtained will be encrypted and only suitable for one-time use.

When using contactless payments, your personal information is not transmitted in its entirety—instead, an anonymized token is used. This means that even if the signal is intercepted, the fraudster will not obtain your full name, card number, or bank details. In addition, most contactless cards have a transaction limit (usually up to $250 in Canada) without entering a PIN, which limits potential losses in the event of card theft.

Mobile payments via Apple Pay, Google Pay, or RBC Mobile add another layer of security through biometric authentication (fingerprint or facial recognition). These systems do not store your card numbers on your device and generate unique codes for each transaction, making them virtually impossible to counterfeit.

However, it is important to remember that contactless cards can still be used for unauthorized purchases if they are stolen. Therefore, immediately notify your bank of a lost or stolen card, even if it has a contactless feature.

Creating strong passwords and PINs

Choosing a secure PIN is crucial for protecting your bank cards. Avoid obvious combinations such as your date of birth, phone number, address, or sequential numbers (1234, 1111). Do not use the same PIN for different cards and change it periodically, especially if you suspect that someone may have seen it.

Never write your PIN on the card itself or on a piece of paper that you keep in your wallet. If you have trouble remembering the code, create an association or mnemonic device that only you will understand. Some people use meaningful but not obvious dates or mathematical operations with important numbers.

For online banking, create complex, unique passwords for each account. Use a combination of upper and lower case letters, numbers, and special characters. Consider using a password manager to create and store complex passwords. This software can generate random passwords and store them in encrypted form, so you only need to remember one master password.

Enable all available notifications from your bank—about logins, password changes, and all transactions. This will allow you to immediately detect suspicious activity. Canadian banks, including TD, RBC, BMO, Scotiabank, and CIBC, offer free alerts via SMS or email.

What to do if you suspect fraud

If you notice suspicious transactions on your account or suspect that your card has been compromised, you need to act immediately. The first step is to call your bank to block your card. Major Canadian banks have 24-hour hotlines:

• TD Canada Trust — 1-866-222-3456

• RBC Royal Bank — 1-800-769-2511

• BMO — 1-877-225-5266

• Scotiabank — 1-800-472-6842

• CIBC — 1-800-465-2422 When contacting your bank, be prepared to provide detailed information about suspicious transactions, including dates, amounts, and locations. The bank will open a fraud investigation and, in most cases, refund the lost funds if you have acted responsibly in protecting your card and personal information. Canada has zero liability policies from Visa, Mastercard, and American Express that protect consumers from unauthorized transactions.

At the same time as contacting your bank, file a report with the Calgary Police Service by calling the non-emergency number 403-266-1234. The police will give you a case number, which you will need for reimbursement and insurance claims. Also report the incident to the Canadian Anti-Fraud Centre online or by calling 1-888-495-8501.

Contact the credit bureaus (Equifax Canada at 1-800-465-7166 and TransUnion Canada) to place a fraud alert on your credit report. This will prevent new credit accounts from being opened in your name without additional identity verification. Review your credit reports regularly over the next few months to identify any suspicious activity.

Preventive measures and regular account checks

The best protection against bank card fraud is prevention and constant vigilance. Review your statements for all your cards and bank accounts regularly, at least once a week. Enable automatic notifications for all transactions, even the smallest ones — fraudsters often test stolen cards with small purchases first.

Keep your cards in a safe place and never leave them unattended. When you receive new cards, sign and activate them immediately. Destroy old cards by cutting them into several pieces, especially through the chip and magnetic strip. When disposing of bank documents, use a shredder or tear them into small pieces.

Be careful with social media — do not post photos of cards, bank statements, or information about large purchases. Fraudsters can use even partial information for social engineering or to answer secret questions asked by banks.

When traveling abroad, inform your bank of your travel plans to prevent your card from being blocked due to suspicious activity in another country. Use ATMs of large banks and avoid independent ATMs in tourist areas, where there is a higher risk of skimmers being installed.

Educational resources and community support

Calgary has an active network of organizations dedicated to fraud prevention and public education. The Calgary Police Service regularly holds financial security seminars and publishes updated information on new types of fraud through its social media channels and website. Every March, Alberta observes Fraud Prevention Month, during which various organizations join forces to raise public awareness.

Calgary Crime Stoppers offers an anonymous hotline 1-800-222-8477 to report suspicious activity. The Canadian Anti-Fraud Centre regularly publishes reports on fraud trends and recommendations for protection. These resources are free and available to all residents.

Local banks also offer educational materials and personal consultations on financial security. Many have dedicated fraud prevention teams that can provide specific advice for your situation. Don't hesitate to contact your bank with security questions—it's better to prevent a problem than to deal with its consequences.

Conclusion

Protecting yourself from bank card fraud requires a combination of technical knowledge, healthy skepticism, and constant vigilance. While security technologies are constantly improving, fraudsters are also adapting and creating new schemes. The best defense is an educated consumer who understands the risks, uses secure practices, and knows how to respond quickly if problems arise. Remember: Calgary banks and law enforcement agencies are there to help, but you are always your first line of defense.