Charlene MacNeil reported an unauthorized withdrawal of almost $10,000 from her bank account in August. Despite her appeal, BMO, her bank, has declined to fully refund the amount. (Submission by Charlene MacNeil)
An Alberta resident, Charlene MacNeil, finds herself in a financial predicament as she contends with the need to repay almost $10,000, along with accrued interest. The issue arose when she discovered that her Bank of Montreal (BMO) line of credit had been depleted without her consent.
The 37-year-old MacNeil became aware of the situation on the evening of August 28th when she received an alert informing her that only $33 of her $15,000 line of credit remained available. Alarmed, she promptly contacted the bank's corporate hotline to report the unauthorized activity after noticing a substantial amount missing from her account.
Upon visiting her local branch in Tofield, Alberta, the following day, MacNeil learned that $10,300 had been moved from her line of credit to her checking account. Subsequently, $9,702 was transferred from her checking account to an unfamiliar bill payee. Despite reporting the incident to BMO, the bank's investigation did not result in reimbursement for the missing funds. MacNeil now faces the responsibility of repaying the amount, coupled with a 10.8% interest charge.
Expressing the impact on her family, MacNeil emphasized the emotional toll the incident has taken, eroding her trust in banks and leaving her feeling unfairly stigmatized despite being a victim. MacNeil, residing on a farm near Tofield, has been a BMO customer since childhood, believing she exercised caution with her personal information.
In the aftermath of reporting the incident, MacNeil engaged with a bank employee who conveyed BMO's decision not to reimburse her. The option to escalate the case to the customer complaint appeal office was presented. Following the bank's recommendation, she reported the incident to the Royal Canadian Mounted Police (RCMP), ensuring her phone was wiped for potential viruses. The RCMP is actively investigating the case as a fraud report between $5,000 and $10,000.
BMO spokesperson Jeff Roman maintained the bank's commitment to customer confidentiality, refraining from disclosing specific details of the incident. Instead, he directed attention to an investigation outcome letter sent to the customer, emphasizing its significance.
The letter, dated October 10th, revealed that the device accessing MacNeil's account successfully retrieved and entered a one-time passcode sent to her phone number. Senior investigator Gary Jasper contended that the responsibility for safeguarding account information rested with MacNeil, emphasizing her role in protecting bank card numbers, passwords, passcodes, and devices.
In response, MacNeil, who primarily uses her phone for online banking, disputed the claim, expressing doubt about receiving a two-factor authentication code on the day of the incident. She remains unsatisfied with BMO's response and, after a detailed conversation with Jasper, received a verbal offer of $500 reimbursement from the Tofield branch manager. Still aiming for a full recovery, MacNeil has complained to the Ombudsman for Banking Services and Investments (OBSI).
The prevalence of fraud in the banking sector is underscored by OBSI figures, revealing nearly 500 fraud cases between January and July of the current year. Fraud remains a top-reported banking issue, with various methods employed, including data breaches, malware downloads, and deceptive practices. The cybersecurity program chair at the Northern Alberta Institute of Technology, John Zabiuk, highlights the vulnerability associated with public Wi-Fi networks, urging caution and recommending measures such as regular password changes, multifactor authentication, vigilant account monitoring, and thorough app research to mitigate potential risks. As of June 30th, over $280 million has been lost to fraud in Canada this year, according to the Canadian Anti-Fraud Centre.
