Bank Fraud Victims Urge Ottawa to Mandate Reimbursements from Big Five Banks
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As Canadians lose hundreds of millions to scams, victims and advocates argue that financial institutions should be held legally liable for fraud losses rather than blaming customers.
Dozens of bank fraud victims are calling on the Canadian government to hold the nation's largest financial institutions more accountable for losses resulting from scams, as CBC News first reported. Customers of TD, Royal Bank, Scotiabank, CIBC, and the Bank of Montreal are seeking legislation that would mandate banks be more liable for fraud, similar to policies in other countries.
Reporting from CBC News notes that the government's Canadian Anti-Fraud Centre reports total fraud losses exceeded $700 million in 2025, with an estimate that only five percent of victims report these crimes. While banking-specific totals were unavailable, CBC News reports victims frequently experience e-transfer fraud, credit card fraud, investment scams, and bank impersonator scams.
In one case, 88-year-old Ralph Moore lost $450,000 over 10 months starting in May 2025 after being targeted by a deepfake video of Prime Minister Mark Carney. Moore conducted transactions online and visited a TD Bank branch to arrange payments. While TD acknowledged the scam early on—questioning transactions and placing temporary restrictions—the bank did not permanently block the transfers. TD eventually shut down Moore's account in February 2026, later writing to his daughter, Leslie Herrndorf, that it decided to "exit the client relationship" to avoid further harm. A TD spokesperson told CBC News that protecting customers is a "top priority," though the bank declined to answer specific questions about Moore's case.
Other victims reported similar struggles. Karla Zwicker of Edmonton told CBC News that Scotiabank declined to reimburse her for over $13,000 stolen by hackers, claiming there was no evidence her account was compromised. Ivanka Bubic was targeted by scammers who spoofed an RBC phone number to convince her to approve credit card charges and withdraw money from a line of credit.
CBC News reports that financial institutions typically deny reimbursement by issuing letters that blame customers for cooperating with scammers or sharing passwords. Alexandre Plourde, a lawyer and analyst at the Montreal consumer advocacy group Option consommateurs, told CBC News that the law does not do enough to protect consumers, noting that victims are not "negligent" or "stupid."
When contacted by CBC News, TD, Royal Bank, the Bank of Montreal, Scotiabank, and CIBC all declined interviews regarding customer losses. The Minister of Finance has stated the government is acting on the issue, though further consultation is required.