How to protect yourself from credit card fraud
7 minute read Published on Aug 21, 2026 by BrokerLink Communications
Most people don’t think too much about credit card fraud until it happens to them, like a charge they don’t recognize or a text message that looks a bit off. For many Canadians, credit card fraud is still a big problem. And it’s not just about money going missing. It often means lost time spent on the phone with your bank, time away from work and a lot of follow-up to get things straight again. Not to mention a damaged credit score.
In 2024 alone, Canadians reported more than $638 million in fraud losses to the Canadian Anti-Fraud Centre. The good news is that, most of the time, you can actually prevent credit card fraud yourself. And when it does happen, there’s a clear way to deal with it. You just need to know what to watch for and what to do next. Read on to find out.
What exactly is credit card fraud?
If someone steals your credit card or gets your card information another way and uses it to buy something without your permission, that’s credit card fraud. It usually falls under either:
Card-present fraud, where the physical card is used in person
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Card-not-present fraud, where purchases are made online, over the phone or in apps
With phishing texts, scam emails, weak passwords and data breaches being so common now, most credit card fraud doesn’t involve the physical card at all.
What are the most common types of credit card fraud?
Most credit and debit card fraud criminals aren’t very creative. But because they tend to use the same types of scams over and over, people sometimes don’t realize what’s going on until it’s too late. Here are some common ones:
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Phishing texts or emails that claim there’s a problem with your account or a missed delivery and ask you to click a link and enter your card details
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Compromised online purchases, where a retailer’s system is breached and card information is later reused
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Skimming at terminals or ATMs, where a hidden device copies card data during a tap, swipe or insert
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Lost or stolen cards that are used before you notice they’re gone
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Fake refunds or overpayments, where someone sends money and asks for part of it back before the original charge disappears
Credit fraud warning signs
In most cases, the same few warning signs show up first. Here’s what to watch for:
Small “test” charges to your account you don’t recognize
Multiple declined transactions in a row
Alerts about purchases you didn’t make
Requests for your card details by text or email
Pressure to act quickly
Just remember to always trust your gut. If something feels rushed or off, it usually is.
How can you stay safer online and on your phone?
Now that most card fraud starts online without your knowledge that your number was even stolen, it’s important that you check your bank and credit card statements regularly and turn on fraud alerts so you can see any charges as they happen. Here are some other ways that can help keep you safe:
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Don’t share your card number, personal identification number (PIN) or personal details by phone, email or text unless you started the conversation.
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Look closely at website addresses. Scam sites often look almost right, but not quite.
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Only shop on secure websites that have addresses starting with “https://” and a padlock icon in the address bar.
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If a link comes from a text or email, don’t use it. Open a new browser and go to the company’s website yourself.
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Avoid shopping or banking on public Wi-Fi. If you have no choice, don’t enter your card or banking details.
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Use strong, different passwords for your email and banking apps.
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Don’t let browsers or websites save your credit card details for future purchases.
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Consider using a digital wallet like Apple Pay or Google Pay, which doesn’t share your actual card number with merchants.
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Lock down your phone with a passcode, biometrics and security settings that limit access if it’s lost or stolen.
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Use strong security settings on your smartphone, like fingerprint access or enabling multi-factor authentication (MFA) wherever possible.
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Regular updates to your phone and apps can help protect against scams that target older software.
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Remember that real credit card companies won’t ask for personal information over the phone.
How can you stay safer in-store, at the ATM and when travelling?
In-person fraud still happens, but it’s usually easier to spot than online fraud. Let's take a closer look.
In-store and ATMs:
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Keep your card in sight when paying and cover the keypad when you enter your PIN to prevent shoulder surfing.
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If you think someone may know your PIN, change it immediately and contact your financial institution.
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Use another payment terminal if one looks loose or damaged, as some can be tampered with to copy card information.
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Stick to ATMs in well-lit, busy areas rather than isolated spots.
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Take a quick look at ATMs and point-of-sale terminals for any signs of tampering before using them.
When travelling:
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Let your bank know ahead of time to avoid any unexpected foreign charges getting flagged or blocked.
Bring a backup card if you can.
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Keep card numbers separate from your wallet so you can cancel quickly if needed.
What credit monitoring tools actually make a difference?
There are several credit monitoring tools or methods that can help you spot any fraudulent transactions or accounts:
Real-time alerts
Real-time alerts are one of the simplest and most effective tools you can use. Most Canadian banks let you set up notifications for every card purchase or for purchases over a certain amount. These alerts can help you spot fraud early, often before a lot of damage is done.
Credit monitoring services
Some banks and insurers offer credit monitoring, which can help flag unusual activity sooner.
Credit card statements
Check your credit card statements regularly, even if you use alerts. Criminals often start with small charges that are meant to test whether a card works. Contact your credit card issuer immediately if you have charges on your credit card statements that you didn’t make.
Credit reports
Review your free credit report at least once a year from Equifax and TransUnion to see if any new accounts have opened in your name. You can even receive multiple credit reports each year to help detect credit card fraud early.
What should you do if you’re a victim of credit card fraud?
If you think you’ve been a victim of credit card fraud, here’s what you need to do:
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First, lock down the credit card immediately. Freeze it in your online banking app or call your credit card issuer right away. That will stop any further charges right away. You may also want to take note of who you talked to and when you spoke to them in case it’s needed later.
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Next, report the unauthorized transactions to your bank or financial institution. They’ll guide you through the dispute process and let you know what documentation they need. It helps to write down dates, amounts and case numbers as you go.
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Change your PINs and passwords to something hard to guess, starting with your banking app and email account. From there, update any online stores or services where the card was saved.
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Ask for a replacement card and confirm that any digital wallet versions are replaced as well.
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Report the incident to the Canadian Anti-Fraud Centre. In some situations, your bank or insurer may ask for a local police report, especially if identity theft is involved.
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Finally, check your credit reports for anything unfamiliar. If needed, you can contact Canada’s two main credit bureaus to place a fraud alert to warn lenders to verify your identity more carefully.
Most cases are resolved within weeks, but sometimes they can take much longer. It’s important that you keep any records in case any questions come up later on.
Will your bank refund fraudulent charges?
Most of the time, yes. The Financial Consumer Agency of Canada (FCAC) notes that many Canadian credit cards come with zero-liability protection. If someone uses your card without permission, you’re generally not responsible for the charges, as long as you report them promptly and haven’t been careless with your card. What it usually doesn’t cover are the extra costs that come with cleaning things up, like lost time or administrative fees. That’s where insurance can help.
Where does identity theft insurance fit in?
Identity theft insurance is optional coverage for anyone who wants extra support with the cleanup. It isn’t meant to replace your bank’s fraud protection. Instead, it is meant to work alongside it.
Your card issuer typically handles unauthorized charges and refunds. But even when the money is refunded, credit card fraud can still cost time, your own money and create credit problems. Identity theft insurance is there to help with some of the secondary costs that come with cleaning up fraud. That might include:
Legal assistance
Notary fees
Credit report costs
Lost wages related to resolving the issue
The details depend on the policy. Coverage limits, waiting periods and exclusions vary and some scams or costs may not qualify.
Contact BrokerLink today
The process of getting identity theft insurance can be quite difficult, especially in regards to finding a policy that fits your needs at a good price point. That is why we recommend going with a BrokerLink broker. Here at BrokerLink, we do the shopping for you. We will compare all of your options for you to not only find you the best price, but also the best policy tailored to your specific wants and needs.