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Quiz: Are You Exposing Yourself to Credit Card Fraud?

March 31, 2021
8 mins
A woman gives her credit card info to someone over the phone

According to a recent Leger survey conducted on behalf of Moneris Solutions Corporation, Canada’s largest payments processor, many Canadians are unwittingly exposing themselves to payments fraud during the pandemic.

Almost 40% of survey respondents report experiencing payments fraud or engaging in behaviour that could expose themselves to fraud since March 2020.

In the same period, 14% of Canadians purchased items from an online retailer that were never received.

Sixty-nine percent of respondents feel that online shopping leads to more fraudulent activity and 73% say shopping digitally increases their exposure to fraud.

Further results show more than 80% of survey respondents report at least one factor that influences their online shopping comfort level:

  • 63% of Canadians perceive sites with built-in fraud and payment protection to be safe.
  • 53% feel comfortable shopping with large, recognizable brands.
  • 51% are more comfortable shopping online if they remove their credit card information from their store profile.
  • 40% say that the look and user experience of the site influences them.
  • 38% say a prior cyber breach impacts their opinion.

Although Canadians have varying comfort levels when shopping online, 79% feel comfortable shopping on their computer compared to just 57% who feel comfortable shopping on a mobile device.

Take the RATESDOTCA quiz to learn how you may be exposing yourself to fraud.

How credit cards can safeguard your purchases

Most credit cards offer protection against unauthorized transactions and fraud. However, many also provide additional coverage for lost, stolen, or damaged items. Other payment preferences like debit cards and cash do not offer these services — making credit cards one of the most secure ways to pay for purchases.

Shopping coverage

Many credit cards offer shopping coverage when the full price of an item is charged to the card:

  • Purchase protection: While coverage may vary, cardholders can often claim lost, stolen, or damaged items under purchase protection, up to a specific claim limit per year.
  • Extended warranty: Cardholders with this benefit can usually take advantage of around two additional years of coverage for items with an original manufacturer’s warranty.
  • Price protection: This service is quite rare; however, credit cards with price protection allow cardholders to claim the price difference for purchases when they go on sale within a certain period.

Be sure to read your credit card’s insurance certificate for the specific details relating to your card.

Fraud protection

Most credit cards come equipped with several safety features, including chip technology, a credit card verification value (CVV) and a signature panel. But they may also provide real-time fraud alerts and other services.

Be vigilant when using your credit card by actively protecting your PIN, shopping only on trusted websites and reporting any suspicious transactions you discover. If you take reasonable precautions in the store and online, Zero Liability coverage should protect you from unauthorized transactions and fraud.

Hayley Osmond

Hayley Osmond is an editor and writer in the personal finance space, where she uses her eight years of media and marketing experience to bring content to life. She specializes in money products, including mortgages, home and auto insurance, and credit cards. Hayley holds a Broadcast Journalism diploma from Sheridan College and was awarded the Shaw Media Journalism and Media Award for graduating at the top of her class. Her work has appeared in Global News and diverse digital corporate training materials behind the scenes.

Hayley is passionate about making complex subjects, such as home buying and financial literacy, concise and intriguing. Her work has garnered media coverage from The Globe and Mail, blogTO, Yahoo! News, and CityNews 680 and has been syndicated across other publications.

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