Calls for more protections for Canadian bank clients amid rise in scams
When two Ontario women were scammed out of more than $80,000 in separate bank investigator scams, they thought they would be reimbursed by their banks and were shocked when they weren't.
"I thought they were supposed to have fraud systems put in to protect us," Jodi Lang told CTV News Toronto after losing thousands to the scam.
Most people typically have gotten their money back after it was stolen from their bank account, but now several banks refuse refunds, saying customers who have been "scammed" should have known better.
Democracy Watch, a group co-founded by Duff Conacher in Ottawa, states its goal is to hold governments and corporations more accountable during these situations.
Conacher said the federal government should do more to force banks to look out for bank customers' best interests.
"The banks set up the electronic banking system, and they haven't put in safeguards to prevent unusual transactions going through that system, and they always blame the customer," Conacher said.
Even if a customer gets hacked and is at fault for allowing fraudsters into their bank accounts, Conacher said Canada's big banks should have the technology, security and algorithms to detect fraud as it is happening and shut it down.
"Usually very large amounts of money come out of accounts or on credit cards very quickly and that's the bank's fault," said Conacher.
A spokesperson from Canada's Finance Minister Chrystia Freeland's office told CTV News Toronto in a statement that the government has "zero tolerance" for scams.
"Consumers who have complaints related to the financial products and services provided by their banks are entitled to access their bank's complaint handling process. The Financial Consumer Protection Framework, introduced in 2022, requires banks to address consumer complaints within 56 days of submission. Consumers unsatisfied with the resolution offered by their banks may escalate their complaint to their bank's external complaint body, which will further investigate and make a determination on the merits of the complaint," the statement reads.
"The federal government has designated an independent and transparent not-for-profit organization, the Ombudsman for Banking Services and Investments (OBSI), as the single external complaints body for Canada's banking sector."
As of Nov. 1, 2024, Freeland says any Canadian who feels they have been treated unfairly by their bank can contact an impartial mediator to handle their complaint.
Conacher said to prevent fraud, banks should allow customers to set limits on withdrawals so they can be notified immediately if money is being taken from their account.
For example, a customer could set an alert for transactions over $1,000. Conacher said a system with "red flags" such as this would protect both customers and banks from fraudulent losses.
"What's incredible is that banks have not put that kind of system in place for unusual transactions on bank accounts and they could easily do it," said Conacher.
CTVNews.ca Top Stories
As Hurricane Milton makes landfall, more than 1.6 million customers are left without power in Florida
The Category 2 storm has left 1.6 million homes and businesses without power in Florida as Milton pummels through the state.
Company must refund $1-million deposit after failing to complete West Vancouver home on time, court rules
A West Vancouver company has been ordered to repay a homebuyer's $1-million deposit after it failed to complete construction on the property in time.
Did John Rustad witness an overdose death on his way to the B.C. leaders' debate?
During the campaign, BC Conservative Leader John Rustad has repeatedly said people are "dying on the streets" in the province – and on Tuesday he claimed to have witnessed that very thing in downtown Vancouver while he was on his way to the leaders' debate.
Washington state woman calls 911 after being hounded by up to 100 raccoons
Sheriff's deputies in Washington's Kitsap County frequently get calls about animals -- loose livestock, problem dogs. But the 911 call they received recently from a woman being hounded by dozens of raccoons swarming her home near Poulsbo stood out.
video Why are there cars in the Detroit River?
Dozens of cars were pulled out of the Detroit River in west Windsor on Tuesday, causing many questions for Windsorites.
Biden, Harris condemn storm misinformation ahead of Hurricane Milton landfall
President Joe Biden warned on Wednesday that Hurricane Milton carried incredible destructiveness and urged people to take safe shelter while condemning misinformation about the storm as un-American.
Hundreds of thousands of popular vehicles recalled in Canada over steering issue
Hundreds of thousands of vehicles are being recalled in Canada due to a steering-related issue that could increase a driver's risk of crash.
'We want things to go forward': Bloc leader hints his party 'might' help end House impasse
The leader of the Bloc Quebecois says his party 'might play a role' in helping the Liberals get House of Commons business rolling again — after days of Conservative-led debate on a privilege matter — but that his assistance would come at a cost.
Pilot dies aboard Turkish Airlines flight, forcing emergency landing in New York
A Turkish Airlines jetliner headed from Seattle to Istanbul made an emergency landing in New York on Wednesday after the captain died on board, an airline official said.