Massive B.C. Fraud Hits Debit-Card Users

Source: CBC News

Posted: 11/20/09 8:35AM

Filed Under: Canada

There has been a massive debit-card fraud in B.C.'s Lower Mainland involving thousands of cards and possibly millions of dollars, CBC News has learned.

The fraud was committed through compromised debit machines at stores in the communities of Ladner, Delta, Langley, Surrey and possibly Vancouver.

It appears debit-card pads were replaced with pads equipped with devices that transmitted PIN numbers and transaction information to a criminal organization.

CBC has learned the fraud involved some Safeway food stores, a credit union in Langley and a number of independent retailers.

Most of the pads that were compromised were owned by TD Canada Trust. Anyone affected will be reimbursed, the bank said.

Kelly Hechler, the bank's senior corporate communications manager, told CBC News the bank is hoping new chip technology in debit cards will help eliminate this kind of crime.

"It is really a good thing that chip is rolling out and that we're as far along as we are in getting chip cards out to people," Hechler said.

One family hit for $11,000

The family of Kim Apps of Richmond was among those caught up in the fraud.

"We had three cards compromised," Apps said. "I'd say between two of the cards there has been about $11,000 [taken]."

Apps said she might not use a debit card again.

"It's getting too scary to use."

Police acknowledge a number of people in different Lower Mainland jurisdictions were involved in the sophisticated scheme, which is making it difficult for police to sort out.

"[Investigators] are trying to determine the dynamics of it," RCMP spokesman Sgt. Peter Thiessen said. "They are making progress, they are moving forward. But it is quite complex."

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