Unauthorized purchases while travelling

Ms. H went on a trip overseas where she claimed she was the victim of a credit card fraud. Ms. H insisted that while she was travelling she never used her credit card or gave her PIN or card to anyone. Several overseas cash advances were recorded during her time abroad. She therefore asserted that she was a victim of fraud and requested that her bank compensate her for her loss of just over $3,000.

Ms. H's bank denied her claim. In its view, Ms. H had kept both her PIN and her card together, which was in clear breach of her cardholder agreement. In addition, her bank pointed out that all the disputed cash advance transactions were made overseas prior to Ms. H's return to Canada. Since Ms. H claimed she did not use her card during her trip, the possibility that she was a victim of shoulder surfing was eliminated. Unsatisfied, Ms. H brought her complaint to OBSI.

Complaint upheld in part

Although we were not able to determine whether or not Ms. H was directly involved in the alleged fraud, the evidence we collected was sufficient to conclude that the she had most likely been careless in safeguarding her PIN and her card. More specifically, as she claimed she never used her card or her PIN abroad, it was highly unlikely that her card was duplicated (“skimmed").

However, during our investigation we also determined that Ms. H's monthly cash advance limit on the credit card was $1,200. In our opinion, the client's responsibility should have been limited to that amount. We concluded that the monies withdrawn from her account beyond her authorized limit should be credited back to her. The bank agreed with our position and refunded Ms. H accordingly.

(2010)