Credit card fraud today is more prevalent than ever before. Credit card issuers and fraudsters seem to be playing a never-ending game of cat and mouse. Whenever credit card security is improved, fraudsters find a way around it.
A recent news story in Calgary provides a good wakeup call with just how sophisticated credit card fraud has become. It’s important for cardholders to take the necessary precautions to avoid becoming the next victim of fraud.
“Sophisticated” Credit Card Fraud in Calgary
Calgary police have laid 20 counterfeiting and fraud-related charges. 22 year old Philippe Nerin, and 19 year old Yancee Lemire, of Quebec, are facing a laundry list of serious charges, including possession of property obtained by crime and defrauding a person over $5,000.
Officers found equipment that could be used to make counterfeit credit cards. The equipment included a credit card embosser, a foil tipping machine, a mag strip encoder, over 600 pre-printed blank (un-embossed) credit cards and a computer storing stolen credit card data. Police also seized $6,210 in cash, over $6,500 in prepaid gift cards and a host of brand-new Apple products.
Police were tipped off when one of the accused attempted to book a hotel room with a fraudulent credit card. When officers entered the hotel room they uncovered an elaborate criminal operation. Not only did they apprehend the suspects, they found a large quantity of credit cards and credit card blanks in the hotel suite.
“This was a very sophisticated and organized crime that was occurring. These two individuals flew into Calgary, we believe for the specific purposes of perpetrating these frauds,” said S/Sgt. Kristie Verheul from the Economic Crimes Unit.
Officers called in for further assistance from the Economic Crimes Unit (ECU). The ECU discovered equipment and goods which could be used to fabricate counterfeit credit cards.
“They had with them the entire lab, as you see before you, that was available to make identities associated to credit cards that they were also making and from the computer and the Internet, where you can purchase credit card information, they took credit card information and made these false credit cards so the credit card on the front of the credit cards will have a name and a number. The mag stripe data, is something that will associate to the credit card list of the victim’s information that was potentially swiped off of a swiping mechanism, taken from a restaurant, found over the Internet, etc.” said S/Sgt. Verheul.
Protecting Yourself from Credit Card Fraud
This news story serves as an important reminder about the importance of protecting yourself from credit card fraud. Although it’s impossible to stop all credit card fraud, here are some ways you can better protect yourself from fraudsters.
Places Prone to Skimming: You should be extra cautious when using your credit card at places prone to skimming. What’s skimming? It’s when your credit card information is stolen by fraudsters at a tampered point of sale device. Places like gas stations and ATMs are targeted by fraudsters as they’re often left unattended for hours. Try to only use your credit card at secure point of sale devices.
Switch to a Chip-and-PIN Credit Card: If you’re still using a credit card with a magnetic strip, you’re leaving yourself vulnerable to credit card fraud. If you haven’t made the switch to a Chip-and-PIN credit card, what are you waiting for? Not only are Chip-and-PIN transactions more secure, they’re nearly impossible to clone.
Keeping Your Credit Card Safe: A lost or stolen wallet is like a treasure-trove for fraudsters. To protect yourself, only carry the credit cards you plan to use and leave the rest at home. That way if your wallet is stolen, the damage will be limited.
The Bottom Line
Although most cardholders are protected under built-in zero-liability policies, it’s still important to protect yourself from credit card fraud. Not only can credit card fraud be a headache to deal with, it can damage your credit report – taking extra time and effort to correct. It’s important to regularly review your credit card statement for fraudulent charges. If you suspect you’ve been the victim of credit card fraud, you should report it immediately.
