Eastern European gangs are believed to be behind a debit card scam in Victoria, B.C., that has drained money from hundreds of people's bank accounts, Saanich police said.

Police encourage people to examine the PIN pad before swiping their debit card in order to avoid being scammed.
(CBC)

Police have found five fake PIN pads in Greater Victoria over the past week and money has reportedly been stolen from 268 local debit card accounts during that time, spokesman Sgt. John Prince said.

"They're organized Eastern European gangs…. We know there's a large group in the Lower Mainland that does this. They sweep across Canada so people need to protect themselves," Prince told CBC News.

Price said a group of thieves usually enter a store and while some distract the clerk, others switch the store's PIN pad with one they have modified.

Saanich police Const. Brad Brajcich says scam artists usually switch the PIN pad in a store and wait for customers to start using the counterfeit one.
(CBC)

"The consumer still does the true interaction with the PIN pad, however, there is a remote chip that allows someone off-site to gather the personal information of the consumer," said Const. Brad Brajcich of the Saanich police.

The thieves then used their computers to download the magnetic code and PIN number of every customer who has used that Interac machine, transfer them to bogus debit cards and steal the money, Prince said.

Police believe there are more fake PIN pads across the Lower Mainland.

Kai Schmidt, a Vancouver resident, said $400 was mysteriously taken from his account on Sunday.

Vancouver resident Kai Schmidt says $400 was mysteriously taken out of his bank account on Sunday.
(CBC)

"We were positive we hadn't taken the money out, so obviously it must have been stolen," he said Thursday.

Police offer the following tips to avoid being the victim of a debit scam:

For customers:

• Check if the PIN pad has been tampered with before handing over your debit card. Look for raised screws on the back, the absence of a serial number, or the machine looks like it doesn't fit.
• Check your bank statement often, daily if possible, for any illegal activity.
• Call the bank at once if you are suspicious about anything in your account.

For merchants:

• Pay attention around the cash register because "fake" customers will try to distract you while they switch debit machines.
• Check the PIN pad regularly throughout the day and look for signs of tampering.
• Put labels or stickers on PIN pads so they're easily identifiable by staff and to deter thieves from making a quick switch.

Canadian banks have the obligation to reimburse victims of debit card scams, said Maura Drew-Lytle, a senior media relations manager with the Canadian Bankers Association.

"If you're the victim of fraud, you can get your money back. And sometimes the banks with their monitoring systems, they can get your money back before you even know it's gone," she said.

A total of $95 million was stolen in debit card scams last year, she said.