Protect your business against fraud

A fraudulent credit card transaction could involve an invalid account number, unauthorized use of a valid account number or a lost or stolen card. Card skimming is the most common form of debit card fraud. Fraudulent transactions normally occur within hours of loss or theft and in most cases the victim has not yet reported his/her card as missing or stolen.

Fraud can also include stolen credentials off an e-commerce website or from an in-app purchase on a mobile device.

A common type of fraud occurs when orders are placed to Canadian businesses from overseas.

Typically, a merchant will receive a small initial order from an overseas customer by phone or email that establishes the relationship. A second order may follow requesting a much larger shipment of merchandise to an international address.

Be aware, however, that obtaining an authorization number only confirms that funds are available on the card. It does not confirm that the legitimate cardholder authorized the transaction, nor will it prevent a chargeback.

Fraudulent credit cards can be broadly classified into two groups:

1. Counterfeit cards, where the card is illegally produced but looks and works like a legitimate card. Be sure to examine credit cards carefully to detect signs of tampering or counterfeiting.
2. Lost or stolen cards, where the card is legitimate, but the user is not the authorized cardholder.

Trust your instincts – if a transaction feels off and doesn't seem legitimate, you can make a Code 10 call at any time which alerts our authorization centre of the suspected fraudulent transaction, but does not alert the individual presenting the card.

While it's important to report suspected fraudulent transactions, do not perform a Code 10 call if your personal safety is at risk. Instead, complete the transaction and contact TD Merchant Solutions only when it's safe.

Skimming refers to the practice of capturing account information from the magnetic stripe of a debit or credit card in order to make a counterfeit card. When debit cards are involved, Personal Identification Numbers (PINs) are also stolen.

It's possible that card skimming could be happening right now at your business, and you wouldn’t even know it. But by taking the precautions shown below, you'll help prevent skimming and protect your customers from falling victim to fraud.

According to the federal government, telemarketing fraud costs Canadians more than $100 million every year. While telemarketing is a legitimate sales tool for many companies, including TD Bank Financial Group, criminals may also use it to deceive you with phony offers. Your best defense is to learn to recognize fraud and take a few simple steps to protect yourself in these scenarios.

Never invest or buy a product or service without fully understanding what it is, and verifying whether it is legitimate.

If the caller is using high-pressure sales tactics, it's a sign that something is probably wrong, especially if you're told to make a decision by the end of the call. The RCMP advises consumers not to be afraid to hang-up the phone – it's not rude, it's smart.

In April 2015, amendments were made to the Code of Conduct for the Credit and Debit Card Industry (the Code), including three new policy elements. We encourage you to view all 13 policy elements.

TD Bank Group continues to support the evolution of the Code, and believes it provides merchants a greater voice in the payments market, while also balancing the interests of the other participants in this industry.

You can also file your complaint directly with the Financial Consumer Agency of Canada (FCAC) to investigate non-compliance with the Code. FCAC can be reach via:

Phone: 1-866-461-32221-866-461-3222
Email: info@fcac-acfc.gc.ca
Mail:  Financial Consumer Agency of Canada 6th Floor, Enterprise Building 427 Laurier Ave. West Ottawa, ON K1R 1B9

Please note FCAC is not a dispute-resolution agency for consumers in their individual dealings with payment card network operators or acquirers.