It’s a new twist to an old scam — fraudsters are spoofing phone numbers to steal access codes to hack into bank accounts, and two Toronto women lost more than $80,000 as a result.
The Canadian Anti-Fraud Centre said this variation of the bank investigator scam is becoming prevalent.
Jodi Lang, of Brampton, said she received a phone call in May from someone claiming to be with Scotiabank’s fraud department. Lang said they told her that her bank account was compromised and she needed to hand over her debit card in an envelope to someone knocking on her door to keep her funds safe.
Lang told CTV News Toronto she followed their instructions, and scammers gained access to her account.
“There were things coming out and things going in. I didn’t know what was going on,” said Lang.
In the end, she was defrauded of $50,000.
“I thought the bank was supposed to have fraud systems in place to protect us,” said Lang.
Lang says her bank, Scotiabank, would not refund the stolen funds.
A spokesperson for Scotiabank could not comment on Lang’s specific case for privacy reasons but said the bank takes fraud cases seriously and continues to “educate clients that the bank will never ask for one-time-passwords (OTPs), PINs and verification codes over a phone call, or ask clients to pick up bank cards.”
“Clients are encouraged to always practice safe banking habits while doing their part to help recognize, reject, and report fraud,” the statement reads.
Melanie Gardner, of Brockville, Ont., fell victim to the same scam in July after receiving a similar phone call.
“I received a phone call stating they were from the RBC department fraud,” said Gardner.
Gardner said she was told her bank account was in jeopardy and that she needed to transfer money to keep her funds safe.
“They had totally convinced me that my account had been compromised,” said Gardner.
She was told to e-transfer funds from her account, which would later be returned. In the end, she was out $34,000.
“I’m terrified. I’m a single mother, and every bit of money I had is totally gone,” Gardner said.
RBC also denied Gardner a refund. When reached for comment, the bank told CTV News Toronto it could not comment on the specifics of Gardner’s situation but said the bank is communicating with her directly.
“We understand that experiencing fraud or a scam can be a difficult and stressful event. We encourage clients to contact us if they believe they have been impacted by a scam or fraud, as we investigate each instance on a case-by-case basis,” an RBC spokesperson said in a statement.
Echoing Scotiabank’s warning, RBC said representatives or employees would never ask for one-time passcodes through text messages, emails, or voicemail. The bank also said it would never ask customers to send money to secure their profiles or share the link to an e-transfer deposit, request to download a remote access application, access customers’ online banking to add payees, or ask to participate in an undercover operation to prevent fraud.
In case an RBC client has any doubts, the bank said they should call RBC at the number found on the back of their debit or credit card.
According to the Canadian Anti-Fraud Centre (CAFC), Canadians have lost almost $6 million this year to the ‘bank investigator’ scam, and they said the number of victims continues to grow.
“They fool people to give them their two-factor identification code, and victims don’t realize what they are providing is giving them access to their account,” said Jeff Horncastle with the CAFC.
Horncastle also said not to assume the number on call display is accurate, and if you do get a suspicious call, hang up and call back at a number you find yourself.
Gardner and Lang both told CTV News Toronto they can’t afford to lose the money they lost and are surprised their banks don’t have better security systems to prevent this type of fraud.
“Times are tough for everyone right now, let alone having to pay back money that I didn’t take. That I didn’t steal,” said Gardner.
“We put all our money in banks, and the banks can’t even keep us protected,” exclaimed Lang.