Transit police expect to see a jump in fraud cases involving transit passes once TransLink launches its new Compass smart-card system this fall.

The problem, seen in other jurisdictions with smart-card technology, is expected to be even bigger than resale of fraudulent student U-Passes, which has cost TransLink up to $15 million per year, because more people will be using the Compass card.

“We don’t know yet what is going to take place, what problems they’re going to encounter … but the potential for it to be likely bigger than (the U-Pass scandal) is there,” Transit police spokeswoman Anne Drennan said.

TransLink officials acknowledge they will never eliminate fraud in the transit system, noting research in other cities — such as London, Sydney and Los Angeles — has shown smart-card fraud is significant and, because it is similar to credit-card fraud, will exist regardless of security features.

But TransLink spokesman Derek Zabel maintains the Compass card has potential to reduce fare evasion, as it allows users to register both for the smart card and the U-Pass, which means those cards can be cancelled if lost or stolen or shut down if inconsistent transactions are detected.

TransLink expects to issue 600,000 to 800,000 Compass cards. The electronic smart card will replace existing monthly and daily passes, tickets and cash fares at SkyTrain and SeaBus.

The Compass cards will be launched in conjunction with faregates at SkyTrain stations to ensure only paying customers get on board. Those caught riding without a valid ticket face a $173 fine.

“People are always going to try to find new ways to defraud the system and that’s going to be a challenge,” Zabel said. “I’m sure you’ll still have people trying to fraudulently sell them, but we’re going to have the ability to shut cards down when before we didn’t.

“Will we ever eliminate it? Probably not, just like a major department store will never eliminate shoplifting.”

A provincial audit of TransLink last year found estimated fare evasion had risen 120 per cent to $14.5 million in 2011 from $6.6 million in 2001.

Drennan said Transit police are looking to other cities, such as Boston, for sophisticated investigative techniques and enhanced IT training to help officers deal with smart card-related fraud. The force has also picked up tips from an MIT report, which highlights how easy it is to hack into the smart- card system, she said.

“We’re aware there have been problems in other jurisdictions with hackers and that kind of thing,” Drennan said. “We’ve been talking to other departments where there has been a marked problem and talking with them about technology.”

Transit police already monitor four main social media sites, including Craigslist and Kijiji, to find any illegal mass sales of fare media, including U-Passes, and have prevented the circulation of an estimated $5 million worth of counterfeit passes in the past two years.

TransLink had threatened in 2011 to shut down its U-Pass program after seeing a proliferation of online resales of student and counterfeit passes.