In a local Vancouver coffee shop last October, Jordon Judge received a call from someone claiming to be from Scotiabank, which turned out to be a fraudulent call using phone call “spoofing.” The caller mentioned two suspicious charges on Judge’s Scotiabank Visa card, which he denied authorizing. Despite assurances that the charges would be blocked, Judge later discovered two significant unauthorized charges totaling nearly $20,000 on his credit card statement.
This incident led to a frustrating process where Scotiabank persisted in holding Judge accountable for the fraudulent charges. Credit card fraud is on the rise, with a notable increase in cases of compromised credit cards in identity fraud incidents over the past few years, according to the Canadian Anti-Fraud Centre.
Complaints related to fraud are the primary concern for the Ombudsman for Banking Services and Investments, with credit cards following e-transfers in the frequency of fraud complaints. Under federal law, a person’s liability for unauthorized credit card transactions is typically limited to $50 unless the bank can demonstrate gross negligence on the part of the customer in safeguarding their card.
A cybersecurity expert emphasized the importance of financial institutions conducting thorough investigations and providing compelling evidence before holding customers responsible for fraudulent transactions due to the escalating fraud landscape and technological complexities.
Despite Scotiabank’s repeated claims of Judge’s involvement in the fraud, experts pointed out the lack of transparency and concrete evidence in the bank’s investigation process. Recommendations include using more secure options like authenticator apps to prevent fraud, as traditional methods like SMS/text messages or email codes are susceptible to various compromises.
Advocacy groups have called for stronger protections for banking customers in fraud cases, urging banks to enhance transparency and clarify the burden of proof in demonstrating customer negligence. In Judge’s case, after media intervention and inquiries, Scotiabank eventually reimbursed him for the unauthorized charges, highlighting the need for more accountability and transparency in addressing credit card fraud issues.
While Judge ultimately received compensation after persistent efforts, concerns remain about individuals facing similar situations without the means to challenge financial institutions or defend themselves against unjust accusations of fraud.