Credit card fraud; Banks will hold customers liable if there is no evidence

 

 

Credit card fraud is a growing problem across Canada. The Canadian Anti-Fraud Centre says the rise in identity fraud cases over the past three years is related to stolen credit cards. The Banking Services and Investments Ombudsman says fraud-related complaints are the main problem it handles, and that e-transfers alone account for more fraud complaints than credit cards.

Under federal law, a person's maximum liability for unauthorized credit card transactions is generally capped at $50 unless the bank can prove that the customer was grossly negligent in protecting their card. Financial institutions are raising awareness among customers about the increasing incidence of fraud and the growth of sophisticated technologies. Therefore, cybersecurity experts say that once a fraud has occurred, a thorough investigation should be conducted and clear evidence should be provided. If fraud cannot be proven, banks will file charges against the customer and impose charges.