Interac Association says Interac debit card fraud losses attributed to “skimming” have dropped to the lowest level since 2003 — falling to $38.5 million in 2012 from a high of $142 million in 2009.
This represents fewer than one per cent of domestic Interac debit card volume and the lowest volume of fraud losses since data was first recorded in 2003.
The number of cardholders reimbursed fell to 93,800 in 2012 from 238,000 in 2009.
Skimming refers to the use of illicit devices to extract data from the magnetic stripe on debit cards.
Caroline Hubberstey, the head of external communications for Interac Association, said the ongoing switch to chip technology from magnetic stripes has helped to reduce fraud.
Interac said unlike a magnetic stripe, chip technology makes it extremely difficult to copy and reproduce information from a debit card.
By the end of January, 99 per cent of active Interac debit cards and 99.6 per cent of automatic banking machines had been converted to chip.
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