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RBC Royal Bank places a high priority on protecting clients against potential losses from financial fraud. We work closely with other financial institutions, industry associations and law enforcement authorities across the country to combat financial crime. The following provides background on debit card safety.
Is fraud on the rise? Should I be worried?
Fraud is a global issue and organizations like RBC have a full team of specialists, backed by the latest fraud technology and measures, to fight fraud attempts. Despite the best prevention efforts, some fraud still takes place. In cases of confirmed fraud, clients are protected - funds will be reimbursed and we will do whatever else is needed to block unauthorized access to their funds with us.
Is debit card fraud easy to do? How can I be sure it's safe to use your banking machines?
Over a billion transactions are conducted at banking machines across the country every year without incident. We have systems and procedures in place to catch fraud in progress or to take immediate steps if a fraud has taken place. You can continue to use our banking machines with confidence.
What are you doing to protect me while I use your banking machines?
Our banking machines remain safe to use. If a client becomes a victim of card fraud through no fault of their own, we will reimburse their accounts with us and take whatever other steps are needed to protect their funds with RBC.
Whenever doing any kind of financial transaction, we advise our clients to take basic precautions. When using a banking machine, it is important to be aware of your surroundings and to leave the area if you feel uncomfortable for any reason.
The majority of debit card fraud occurs when a criminal obtains a person's PIN number, by 'shoulder surfing,' through a hidden camera, or by convincing the cardholder to disclose the PIN. The debit card absolutely cannot be used at a banking machine or point of sale terminal without the card and PIN together. That's why it remains important for people to always protect their PIN.
I heard that you block cards and customers can't access their money.
If we receive information and believe that your card is at risk, we will block access to the funds in your accounts with us as a preventative measure to ensure no unauthorized transactions can be made. At the same time, we will call you and ask you to visit the RBC branch nearest you to validate the transactions on your account and receive an immediate replacement Client Card. If there are unauthorized transactions, we will ask you to complete a claim form so that signed records of your situation can be kept on file in the event of any further investigation.
While this does not happen often, we recognize that this can be an inconvenience and we apologize for this however this process has been helpful in protecting our customers, stopping potential fraud and in catching criminals. We advise customers when possible to have a variety of payment methods available to ensure daily activities are not interrupted, even temporarily - such as a credit card, cheques and some cash.
Is it true that anyone can get your account information from the magnetic stripe on your debit card?
No, the magnetic stripe does not include your account information or PIN. Your PIN is your electronic signature and a forged card is useless without your PIN. In the event that a criminal has obtained your PIN, we have detection technology that alerts us to any unusual patterns of transactions. Despite the best prevention efforts, some fraud still takes place. In cases of confirmed fraud, clients are protected - funds will be reimbursed and we will do whatever else is needed to block unauthorized access to your funds with us.
I understand that fraudsters are placing devices over an ATM that will automatically capture my PIN. How can I protect myself in these situations?
Whenever criminals try something new, we become better aware of what to look for and how to counter it. We are working directly with ATM and Point of Sale manufacturers on a variety of preventative technologies. A key part of our strategy is keeping our strategy out of the public eye so as not to tip the fraudsters. In the meantime, rest assured that you remain protected. In cases of confirmed fraud, funds will be reimbursed and we will do whatever else is needed to block unauthorized access to your funds with us.
If the banks are taking losses because of fraud, do I end up paying for it through higher service prices or higher insurance premiums?
Fraud losses are part of running a business. They are factored into our operating expenses. Fraud is also a factor in the pricing of some products but it is only one factor among many.
These days I feel it's safer to carry cash than credit, or better to use a credit card than a debit card. What would you recommend?
Today when there are a variety of payment options, it is truly a question of personal preference. If replacing lost funds is the primary driver, if cash is stolen, the money usually is gone, unless covered by a home insurance policy. With a credit or debit card, the client often has recourse. At RBC, both credit and debit cards are backed by sophisticated fraud prevention and detection technology and processes. Each payment option offers different benefits for clients.
I heard it takes a long time to get my money back if I've been defrauded?
Theft or fraud is traumatic for any victim. Our goal is to minimize the inconvenience to our client during an investigation. Before taking a loss it is reasonable for the bank to do its research and to ask questions to understand and evaluate the circumstances. Even in the case of an insurance claim, the company does not automatically issue a cheque. Depending on the circumstances, the process could take as little as a few days or several weeks.
Customers are protected under the provisions of the Canadian Code of Practice for consumer debit cards. At RBC we respond to clients 98 per cent of the time within five business days. The remaining may take longer because of the complexity of the investigation.
As part of our relationship with our client and the severity of the circumstances, we do extend support in a variety of ways, such as working with our client to enable bill payments to be met.
When are you going to introduce CHIP technology?
RBC Royal Bank is continuously looking at ways to serve our customers better. Chip technology is one of many solutions being investigated by the industry. Any change of this magnitude, however, takes time and we owe it to consumers to do it right. For example, it means changing every location that a card is used both at ATMs and retail outlets. That's why we are working with the industry to find the best solution to ensure that we continue to protect our customers. For this reason, we are not committing to a time frame for its roll out across all payment systems.
One consideration is customer convenience when traveling. Some countries have made no indication that they will move to CHIP, such as the U.S. Even so, it is likely that cards will be issued with both a magnetic stripe and CHIP to ensure that cardholders can use their cards in other countries where CHIP is not yet available.
How can I avoid becoming a victim of fraud?
Consumers play a role in safeguarding their cards and accounts. Often, knowing that there is a potential for fraud is the first step in taking action to avoid becoming a victim.
Some precautions include:
- Always keep cards in the same location.
- Call your local branch or Royal Direct (1-800-769-2511) as soon as you believe your card has been lost or stolen.
- Do not let anyone use your debit card and do not share your PIN, not even with family, friends or colleagues.
- While using an ATM or point of sale terminal, shield your PIN at all times. Make sure no one is lingering around you while you are keying in your transaction.
- Be aware of any suspicious looking activity and contact your local branch or Royal Direct (1-800-769-2511) if you identify anything out of the ordinary.
- Check your statements against your receipts each month or more often through online banking, to ensure that there are no incorrect or missing transactions, and call your branch or Royal Direct (1-800-769-2511) if you see something wrong or missing.
- It is generally recommended not to discuss confidential or restricted information on mobile or wireless telephones as in some cases these conversations can be picked up by simple radio scanners and are not secure.
Whose responsibility is it to notify the public of fraud?
It is the responsibility of police authorities to notify the public of criminal activity. Should any RBC clients be affected, our priority is to work with them to protect their funds and information with us and restore funds to their accounts with us as may be the case.
For additional consumer tips, please visit:
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Report incidences to your financial institution who will be able to identify the scam and put your mind at ease. The number to call RBC is 1-800-769-2555. |
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