After detecting $35K in fraudulent transactions, a Canadian man is on the hook. Here’s what you can do to protect yourself from credit card fraud

Your credit card can be a lifeline in tough financial times, but it can also turn into a nightmare in the blink of an eye.

Just ask Andrew St. Hilaire, a small business owner who recently discovered his credit card had been compromised. The damage? A staggering $35,000 in unauthorized charges spanning multiple countries and continents — a spending spree that somehow bulldozed past his US$23,000 credit limit.

“It was charges after charges for jewellery, perfume, pharmacy…and then they’d stop for a steak dinner somewhere,” St. Hilaire shared with CityNews from his home in Winnipeg, Manitoba.

But the real shock came when his bank, The Bank of Montreal (BMO), looked at this international shopping bonanza and determined that everything looked legitimate, refusing to classify the transactions as fraudulent despite the bizarre spending pattern.

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Fraud claim gets denied

It all began in January when St. Hilaire discovered the contentious shopping spree that racked up a $34,447 bill and overshot his credit limit by more than 50%. While BMO didn’t explain why it approved $12,000 beyond Hilaire’s credit limit, this isn’t uncommon with business credit cards.

Banks often allow transactions to exceed stated limits, especially for business accounts. When fraud occurs, multiple transactions can be processed simultaneously before the system flags suspicious activity, pushing the total well past the ceiling without triggering immediate blocks.

When he contacted BMO, St. Hilaire was told his fraud claim was invalid and that he didn’t do enough to protect his card. The bank told him that it had sent a one-time passcode to his email for two-step verification, and that passcode was reportedly used to gain access to his account.

“I didn’t get that email,” St. Hilaire stated. “If I had seen it, I probably would have looked into it and found the fraud sooner.”

St. Hilaire also notified BMO about a fraudulent $5,000 payment to his credit card from his bank account that he says he didn’t make. According to BMO, that payment allegedly came from a device that he used in the past.

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

While this might seem rare, it’s a scenario that plays out worldwide. U.S. sources suggest approximately 7% of legitimate fraud claims end up denied, according to Security.org, leaving cardholders to shoulder the financial burden themselves.

Canada, however, doesn’t provide publicly reported statistics on the percentage of legitimate fraud claims that financial institutions reject, data that banks consider “proprietary.” However, consumer protection in credit card transactions is robust in Canada, and the responsibility for fraud generally shifts away from cardholders. According to the Canadian Code of Practice for Consumer Debit Card Services, cardholders are protected from liability for unauthorized transactions if they:

• Haven’t been negligent, meaning if they have kept their PIN private
• Weren’t complicit in the fraud
• Kept their card with them at all times

If the cardholder meets all this criteria, the bank will typically reimburse the funds.

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

• 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.
• 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.
• 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.”
• Cardholder negligence: If the card company believes you failed to protect your information, it might hold you responsible.
• 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.

Read more: Are you drowning in debt? Here are 3 simple strategies to help crush your balance to $0 in no time

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 defence to offence:

1. Escalate within the company: Ask to speak with a fraud department supervisor or manager who might have more authority to overturn decisions. Beyond this, you can file a complaint with your bank’s external complaints body, for example Ombudsman for Banking Services and Investments (OBSI) and the Financial Consumer Agency of Canada (FCAC).
2. Request all evidence and documentation from your credit card issuer.
3. Report the fraud to assist police investigations with the Canadian Anti-Fraud Centre (CAFC).
4. Contact your provincial or territorial consumer affairs 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,” he is left wondering how any of this happened in the first place.

“Passwords, virus protection. I don’t know how things were compromised,” St. Hilaire said. “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 incidents like St. Hillaire’s is prevention. Here are a handful of practical tips to shield you from fraudulent charges:

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, which 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 scammer tactics are constantly evolving, vigilance — and a little bit of knowledge — is essential for staying safe.

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Sources

1. CityNews: 35K after finding charges on credit card

2. secuirty.org: 62 Million Americans Experienced Credit Card Fraud Last Year by Brett Cruz (Jan 27, 2025)

3. Canadian Code of Practice for Consumer Debit Card Services: Consumers and Debit Cards

This article originally appeared on Money.ca under the title: A Canadian man is liable for $35K in fraud. Here’s how to protect yourself from credit card fraud

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.