Did you know that in the Bank’s fine print they are not responsible for e-transfer fraud? Financial institutions market the convenience of e-transfers and make claims in bold print that the system is safe. In the small print or buried in online agreements, they outline a list of requirements a customer must meet in order to actually be protected.  The big print says Zero liability and risk-free but the small print negates them of all responsibility! The agreement in place at all the big Banks says customers must use tough security questions with answers only the sender and recipient can guess. 

Complaints to Go Public says the marketing that claims people are protected when they e-transfer money is misleading. Many felt misled by their Banks after fraudsters diverted their e-transfer funds. A police detective with Toronto’s cybercrime unit says because e-transfer fraud is on the rise, financial institutions need to do a better job of informing their customers about the risks and how they can better protect themselves.

In one particular situation, TD said the fraud occurred after someone hacked into a client’s email and correctly answered the security question, which was “What is your wife’s name?” It wasn’t hard for the fraudster to figure out the answer as this info was on Facebook. TD said the client was to blame and would not reimburse the lost monies.

The system is not as secure as they say. Bank’s claim that customers who use e-transfers are “protected” and their money is “secure.” Therefore, who would think that fraudsters could hack emails and redirect an e-transfer! “The Banks should be acknowledging that the system is not as secure as they say it is.”

Bagnall, the Toronto detective, says Canada’s banks need to do much more to warn customers about potential risks when using e-transfers, because the frauds being reported are “the tip of the iceberg.” He said financial institutions may not be reporting fraud because it can cause “reputational harm.” “If customers start leaving … that could very much affect their business,” said Bagnall. “Damage to the brand is a huge reason why organizations are not reporting cybercrime to the police.” “They’re so large that there’s not really a reason they need to be transparent, because they can do their own internal investigations,” he said. “They really only need to report to the privacy commissioner.”

The Banks have pushed us into on line Banking and maybe it is time to change our online Banking habits and do what is financially responsible for us and not what is convenient for the Banks, maybe then they will get the message that this is totally unacceptable.

Colleen Saunders is a 20 year veteran in the mortgage industry, serving Mississauga, Burlington, Oakville and Toronto and offering all mortgage related services such as2nd mortgages, private mortgages and more.

To contact Colleen, please fill out the form on  www.mortgagesbycolleen.ca  or call 416-459-2406