Brampton resident Manshapinder Singh says last November he went online to check his banking and was confused to see a $35,000 line of credit had been added to his account.
“When I checked the balance, I was shocked because the whole line of credit was used and I had no idea about it,” said Singh.
“They told me it looked like it might be a case of identity theft,” he added.
It appears someone had gone to his bank, opened the line of credit, and asked for a credit card and then maxed out the $35,000 account.
“They issued a physical client card to someone under that line of credit, and they handed it over to someone at the Milton branch. I told them I have never been to that branch in my whole life,” said Singh.
Singh is a customer of Scotiabank, and he was told he must have opened the account and was responsible for paying back the funds.
A spokesperson told CTV News, “Scotiabank cannot comment on any individual client matters for privacy reasons. However, Scotiabank takes allegations of fraud seriously. We remind clients to remain vigilant and to never share passwords, PINs, or personal information with anyone. If clients have concerns, we encourage them to contact us directly so we can review the situation.”
Singh said after four months trying to have his credit line issue cleared up with Scotiabank, he contacted CTV News.
After CTV News reached out to Scotiabank on his behalf, the $35,000 credit line was completely refunded, which was great news for Singh.
“It is a great relief to have this dealt with,” said Singh.
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Credit card fraud is on the rise: Equifax Canada
New statistics show credit card application fraud has increased by eight per cent over last year, with almost one percent of all applications considered fraudulent.
“We are seeing a major increase in that space, and it’s primarily driven by identity theft,” said Carl Davies, head of Fraud and Identity at Equifax Canada.
According to Equifax, 0.91 per cent of all credit card applications are fraudulent, and while that may not sound like a big number, it means for every 100,000 credit card applications, almost 1,000 are submitted by scammers.
Davies said criminals use your personal information to open credit cards, loans, and lines of credit in your name, which is why it’s important to monitor bank accounts and your credit report carefully.
“If there are inquiries on your files that you didn’t make, that’s one of the first triggers to go out (to your bank) and say, ‘This wasn’t me. Please, can you help?” said Davies.
Criminals are combing through the internet trying to scrape together enough information to steal your identity. The most common way they get it is sending you fraudulent links to click on.
“People are clicking on links they shouldn’t be. They are using QR codes they shouldn’t and following up on text messages they shouldn’t. These things can grab your personal information, and then fraudsters can use that information to apply for information (credit) in your name,” said Davies.
