Recent news reports highlight a scam involving fake taxis and fraudsters committing debit card fraud. The scam is a good example of the social engineering tactics used by fraudsters exploiting our basic human urge to help out someone in need. Here are some tips on how to spot and avoid the scam.

How to spot the scam

In the most recent version of the fake taxi scam involving two fraudsters posing as a taxi driver and a customer, victims think they are helping someone out by paying for a taxi with their debit card because the taxi service "doesn't take cash" during the COVID‑19 pandemic. Victims are offered the fare in cash in return for paying for the ride with their debit card.

Well-intentioned people who offer to pay the fare then have their debit card stolen, along with their PIN, and replaced with another debit card resembling their own. The fake taxi driver and the accomplice then use the victim's debit card to make unauthorized purchases and withdrawals.

How to protect yourself

• Be skeptical. Taxis do accept cash during the pandemic so if someone tries to convince you otherwise, this is a red flag that this may be a fake taxi scam.
• Never hand your card over or disclose your PIN to anyone else.
• If you do hand over your card, ensure that the card that is returned to you is your card.
• If you’re asked to insert or tap your card, beware of fake wireless point‑of‑sale terminals or those not connected to the internet. If something seems strange, don’t go through with the transaction.
• If you think you may be a victim of debit card fraud, contact your bank immediately and they will take the appropriate steps to protect you. For example, they may block your card to prevent losses, ask you to change your PIN or cancel your card and issue you a new one.

Banks take debit card fraud very seriously and work around the clock to protect customers from unauthorized transactions on their accounts. It's also important to remember that as a debit card user, you are protected by the Canadian Code of Practice for Consumer Debit Card Services and Interac policies which guarantee that, if you are a victim of debit card fraud, you will get your money back from your bank.

Banks understand that being the victim of debit card fraud can be upsetting for a customer. They will immediately look into a reported incident and victims of fraud will get their money back as quickly as possible.