Canada’s major banks, telecom companies, police forces, and the federal government have unveiled a new partnership aimed at curbing financial scams. The initiative, called the Anti-Scam Coalition, plans to roll out a nationwide education campaign next month to help Canadians recognize and avoid fraud.
But some fraud victims and industry observers say the effort misses a critical point, which is reimbursement for those who have already suffered losses from a scam.
Canadian news outlets have documented multiple recent cases where Canadians were tricked out of thousands of dollars through sophisticated phone scams—only to have their banks refuse to return the stolen funds.
“Awareness campaigns are important, but they only go so far,” said Jessica Fraser of Timmins, Ont., who was defrauded of $10,000 in June. TD Bank—listed as a “champion” of the coalition on its website—rejected her request for a refund.
“They’re supposed to be the gatekeepers of my money and I trusted them to safeguard me,” Fraser said. “Instead, I’m left carrying the burden.”
Cybersecurity specialist Claudiu Popa echoed Fraser’s concerns. While he supports preventative education, he doubts the coalition will make a real difference without a clear strategy and a commitment to address refunds.
“Banks are having a lot of trouble with customers making a big stink,” Popa said. “The missing component, the elephant in the room, is what’s actually being done for consumers.”
Coalition chair Anthony Ostler, who is also CEO of the Canadian Bankers Association, told CBC News the group’s goal is to coordinate efforts to stop scammers before they steal money. The forthcoming campaign, he said, will give Canadians “tools and tactics” to protect themselves.
$10K down the drain
Fraser’s ordeal began with a phone call from someone claiming to be from TD’s fraud department. The caller warned that a $9,000 Bitcoin transfer was underway and urged her to secure her funds by moving them to a new TD account.
“I just remember feeling really panicked,” she recalled.
Following the caller’s instructions, Fraser set up an e-transfer she believed was to herself—complete with a security question and password the caller provided. Soon after, her $10,000 savings were gone.
“It’s devastating,” said the single mother. “This is my nest egg.”
The fraudster initially asked her to move $3,000, the maximum she could send in one transaction. To raise her e-transfer limit for the rest, he offered to conference in another TD department. Fraser says he stayed silently on the line as she spoke with an actual TD representative.
During that conversation, Fraser mentioned “fraud,” according to a transcript the bank later gave her, yet the representative did not appear to act on the warning. Popa says that alone should have triggered further checks.
“Banks have a duty of care,” he said. “Even a simple clarification could have disrupted the scam.”
Fraser requested reimbursement for the $7,000 transferred after she spoke with TD staff, but the bank denied her three appeals.
In a final letter, TD said she was liable because she had authorized the transfers and noted that a bank employee had read a standard disclaimer advising customers to send e-transfers only to people they know and trust.
Fraser insists the call dropped before she heard that disclaimer and that she believed she was sending money to herself.
“The fact that they’re refusing responsibility … it’s insulting,” she said. “They should have some kind of accountability.”
Timmins police have since charged an individual in connection with the scam. TD, informed of the charges, told CBC it stood by its decision.
“The matter was assessed objectively and in accordance with our policies and procedures,” spokesperson Ashleigh Murphy said by email. The bank did not comment on its role in the Anti-Scam Coalition.
Who pays up when scams succeed?
Canadian law requires banks to reimburse customers for unauthorized credit and debit card transactions, but Finance Canada confirmed there is no legal requirement to refund fraudulent withdrawals from standard bank accounts.
Consumer advocacy group Option Consommateurs, which is helping dozens of Quebec seniors fight similar battles, argues the coalition’s efforts will not protect everyone.
“Scammers will change their scheme, will get more sophisticated,” said lawyer Sylvie De Bellefeuille. “We do believe that banks should be held more responsible… and ultimately reimburse the consumers.”
Both De Bellefeuille and Popa say stronger protections are needed nationwide. Ottawa has already consulted on potential reforms that would force banks to reimburse scam victims regardless of how the fraud occurred. Finance Canada says updates on those plans will come “in due course.”
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