Man talks about his fight with his bank over fraudulent charges on his credit card. <\/p>\n
Your credit card can be a lifeline in tough financial times, but it can also turn into a nightmare in the blink of an eye.<\/p>\n
Just ask Andrew St. Hilaire, a small business owner who recently discovered his credit card had been compromised. The damage? A staggering $35,000 in unauthorized charges spanning multiple countries and continents \u2014 a spending spree that somehow bulldozed past his US$23,000 credit limit.<\/p>\n
\u201cIt was charges after charges for jewellery, perfume, pharmacy…and then they\u2019d stop for a steak dinner somewhere,\u201d St. Hilaire shared with CityNews<\/a> from his home in Winnipeg, Manitoba.<\/p>\n But the real shock came when his bank, The Bank of Montreal (BMO), looked at this international shopping bonanza and determined that everything looked legitimate, refusing to classify the transactions as fraudulent despite the bizarre spending pattern.<\/p>\n It all began in January when St. Hilaire discovered the contentious shopping spree that racked up a $34,447 bill and overshot his credit limit by more than 50%. While BMO didn\u2019t explain why it approved $12,000 beyond Hilaire\u2019s credit limit, this isn\u2019t uncommon with business credit cards.<\/p>\n Banks often allow transactions to exceed stated limits, especially for business accounts. When fraud occurs, multiple transactions can be processed simultaneously before the system flags suspicious activity, pushing the total well past the ceiling without triggering immediate blocks.<\/p>\n When he contacted BMO, St. Hilaire was told his fraud claim was invalid and that he didn\u2019t do enough to protect his card. The bank told him that it had sent a one-time passcode to his email for two-step verification, and that passcode was reportedly used to gain access to his account.<\/p>\n \u201cI didn\u2019t get that email,\u201d St. Hilaire stated. \u201cIf I had seen it, I probably would have looked into it and found the fraud sooner.\u201d<\/p>\n St. Hilaire also notified BMO about a fraudulent $5,000 payment to his credit card from his bank account that he says he didn\u2019t make. According to BMO, that payment allegedly came from a device that he used in the past.<\/p>\n Story Continues <\/p>\n After exhausting most of his options, St. Hilaire has filed a police report, as well as a claim with the Canadian ombudsman for banking services and investments.<\/p>\n While this might seem rare, it\u2019s a scenario that plays out worldwide. U.S. sources suggest approximately 7% of legitimate fraud claims end up denied, according to Security.org<\/a>, leaving cardholders to shoulder the financial burden themselves.<\/p>\n Canada, however, doesn\u2019t provide publicly reported statistics on the percentage of legitimate fraud claims that financial institutions reject, data that banks consider \u201cproprietary.\u201d However, consumer protection in credit card transactions is robust in Canada, and the responsibility for fraud generally shifts away from cardholders. According to the Canadian Code of Practice for Consumer Debit Card Services<\/a>, cardholders are protected from liability for unauthorized transactions if they:<\/p>\n Haven\u2019t been negligent, meaning if they have kept their PIN private<\/p>\n Weren\u2019t complicit in the fraud<\/p>\n Kept their card with them at all times<\/p>\n If the cardholder meets all this criteria, the bank will typically reimburse the funds.<\/p>\n Here are some common reasons why credit card issuers might reject your fraud claim:<\/p>\n The \u201cfamiliar fraud\u201d flag: If the fraudulent purchase fits your spending pattern or location, your card issuer might assume you made the purchase and you\u2019re just having buyer\u2019s remorse and trying to pull a fast one.<\/p>\n Reporting delays: Credit card companies are skeptical of claims made weeks or months after the charge. Even though federal law gives you 60 days, many issuers start looking sideways at reports made after just a few days.<\/p>\n Shared account access: If you\u2019ve ever given your card or PIN to a family member or friend, the issuer might argue you authorized that person to use your account, making all their purchases \u201cauthorized.\u201d<\/p>\n Cardholder negligence: If the card company believes you failed to protect your information, it might hold you responsible.<\/p>\n Transaction verification methods: For large transactions, if there\u2019s evidence of a signature, PIN entry or two-factor authentication, card issuers will often conclude that it must have been you who approved the purchase.<\/p>\n Read more: What is the best credit card in Canada? It might be the RBC\u00ae British Airways Visa Infinite, with a $1,176 first-year value<\/a>. Compare it with over 140 more in 5 seconds<\/p>\n When your credit card company plays hardball with a fraud claim, it\u2019s time to switch from defence to offence:<\/p>\n Escalate within the company: Ask to speak with a fraud department supervisor or manager who might have more authority to overturn decisions. Beyond this, you can file a complaint with your bank\u2019s external complaints body, for example Ombudsman for Banking Services and Investments (OBSI) and the Financial Consumer Agency of Canada (FCAC).<\/p>\n Request all evidence and documentation from your credit card issuer.<\/p>\n Report the fraud to assist police investigations with the Canadian Anti-Fraud Centre (CAFC).<\/p>\n Contact your provincial or territorial consumer affairs office.<\/p>\n St. Hilaire is taking many of the necessary steps. But with his fraud claims shot down and BMO ending its business relationship with him because of his \u201cfraud risk,\u201d he is left wondering how any of this happened in the first place.<\/p>\n \u201cPasswords, virus protection. I don\u2019t know how things were compromised,\u201d St. Hilaire said. \u201cI\u2019ve never lost a card, and I have the virus protection and the safeguards on my computer, which is what a reasonable person would have.\u201d<\/p>\n Of course, the best protection against incidents like St. Hillaire’s is prevention. Here are a handful of practical tips to shield you from fraudulent charges:<\/p>\n Set up instant alerts on your phone for all transactions: This single step catches most fraud within minutes, letting you shut it down before thieves can rack up multiple charges.<\/p>\n Inspect before you swipe: Give card readers at gas stations and ATMs a quick wiggle, as skimmers often feel loose. Stick to bank ATMs when possible, as most card skimming happens at convenience stores.<\/p>\n Use virtual card numbers for online shopping: Most major card issuers now offer this feature, which creates temporary numbers for online purchases, keeping your real card number protected.<\/p>\n Don\u2019t store your card info on websites.<\/p>\n Check your accounts weekly, not monthly.<\/p>\n Credit card fraud is a global problem, with billions of dollars being scammed from unsuspecting cardholders. And since the scammer tactics are constantly evolving, vigilance \u2014 and a little bit of knowledge \u2014 is essential for staying safe.<\/p>\n 1. CityNews: <\/a>35K after finding charges on credit card<\/p>\n