Canadian debit card fraud uncovered - report

Canadian debit card fraud uncovered - report

Crooks in Canada have compromised thousands of cards after installing debit machines that recorded PIN numbers in stores, according to the Canadian Broadcasting Corporation.

CBC says the fraud involves Safeway food stores, a credit union and several independent retailers in British Columbia's Lower Mainland.

The report says "it appears" debit card pads were replaced with ones equipped with devices that transmitted PIN numbers and transaction information to a criminal organisation.

Most of the pads belong to TD Canada Trust, which says it will reimburse people whose cards have been fraudulently used.

The bank also told CBC the introduction of chip and PIN technology should help fight this type of fraud. The Canadian banking industry is currently one-year in to a long-term programme to replace mag-stripe cards with chip and PIN.

Massive B.C. fraud hits debit-card users - CBC

Comments: (1)

A Finextra member
A Finextra member 28 November, 2009, 10:03Be the first to give this comment the thumbs up 0 likes

Safeway can also process these card payments with signature instead of static pin-codes, then they'll notice the decline in card skimming.