Canadian man livid after finding $35K in fraudulent charges from all over the world on his business card — and his bank says he's on the hook. What to do to protect your accounts from fraud

After exhausting most of his options, St. Hilaire has filed a police report, as well as a claim with the Canadian ombudsman for banking services and investments.

Why credit card companies deny legitimate claims

It’s a scenario that plays out worldwide, and while this might seem rare, the numbers tell a different story. Approximately 7% of legitimate fraud claims end up denied, according to Security.org, leaving cardholders to shoulder the financial burden themselves.

Here are some common reasons why credit card issuers might reject your fraud claim:

1. The “familiar fraud” flag: If the fraudulent purchase fits your spending pattern or location, your card issuer might assume you made the purchase and you’re just having buyer’s remorse and trying to pull a fast one.
2. Reporting delays: Credit card companies are skeptical of claims made weeks or months after the charge. Even though federal law gives you 60 days, many issuers start looking sideways at reports made after just a few days.
3. Shared account access: If you’ve ever given your card or PIN to a family member or friend, the issuer might argue you authorized that person to use your account, making all their purchases “authorized.”
4. Cardholder negligence: If the card company believes you failed to protect your card information, it might hold you responsible.
5. Transaction verification methods: For large transactions, if there’s evidence of a signature, PIN entry or two-factor authentication, card issuers will often conclude that it must have been you who approved the purchase.

How to fight back if your claim is denied

When your credit card company plays hardball with a fraud claim, it’s time to switch from defense to offense:

1. Escalate within the company: Ask to speak with a fraud department supervisor or manager who might have more authority to overturn decisions.
2. Request all evidence and documentation from your credit card issuer.
3. File complaints with regulatory authorities like the Consumer Financial Protection Bureau.
4. Contact your state attorney general’s office.

St. Hilaire is taking many of the necessary steps. But with his fraud claims shot down and BMO ending its business relationship with him because of his “fraud risk,” St. Hilaire is left wondering how any of this happened in the first place.

“Passwords, virus protection. I don’t know how things were compromised,” said St. Hilaire. “I’ve never lost a card, and I have the virus protection and the safeguards on my computer, which is what a reasonable person would have.”

5 tips to protect yourself from credit card fraud

Of course, the best protection against fraud is prevention. Here are a handful of practical tips to protect you from fraudulent charges on your bank accounts:

1. Set up instant alerts on your phone for all transactions: This single step catches most fraud within minutes, letting you shut it down before thieves can rack up multiple charges.
2. Inspect before you swipe: Give card readers at gas stations and ATMs a quick wiggle, as skimmers often feel loose. Stick to bank ATMs when possible, as most card skimming happens at convenience stores.
3. Use virtual card numbers for online shopping: Most major card issuers now offer this feature that creates temporary numbers for online purchases, keeping your real card number protected.
4. Don't store your card info on websites.
5. Check your accounts weekly, not monthly.

Credit card fraud is a global problem, with billions of dollars being scammed from unsuspecting cardholders. And since the next scammer tactics are constantly being developed, vigilance (and a little bit of knowledge) is essential for staying safe.