If you get scammed in Canada, will the bank pay you back? Often, no. And that surprises a lot of people, because most of us assume the bank covers fraud the way a credit card company covers a stolen card.
A recent CBC Marketplace report lays out the gap clearly. It’s worth knowing about now, because the scam in it is a common one, and what you do in the first day matters.
Same scam, two countries, two outcomes
CBC followed two victims who described almost the same scam to their banks and to police.
Asif Mohammed, in Toronto, got a call that looked like it came from his bank, Tangerine. The caller said she was from the fraud investigations department. She said someone had tried to use his debit card at a Best Buy in Edmonton. His card, she said, had to be collected as evidence, and the case had been passed to Toronto police, who would send a courier to his worksite.
He handed the card to the courier. He says he didn’t give up his PIN. Minutes later his wife texted him that $1,200 was gone from the account. His words to CBC: “I’ve made a big mistake.”
Samantha Bradshaw, in England’s East Midlands, got a near-identical call that lasted four hours. A courier collected her cards, and the scammers used them to make purchases. They also knew where she lived, which terrified her.
The results were very different. Mohammed lost $7,200 and never got it all back. After months of pushing, he and his wife reached a settlement with Tangerine. They can’t share the details, but it doesn’t cover the whole loss. Bradshaw was out £11,000 (nearly $21,000 Cdn). Her bank told her within days that the full amount was covered.
Why the outcomes were different
It wasn’t the scam, and it wasn’t how careful either person was. It was the law.
According to CBC, British banks are required by law to make most scam victims whole, often within days of a claim. Canadian banks have no such legal obligation. That leaves victims here largely on their own.
The U.K. system also changes how banks behave. When the bank has to pay, it has a reason to stop the scam before the money leaves. Santander’s head of fraud risk told Marketplace the rules pushed the bank to flag suspicious transactions and step in when a customer seems to be sending money to someone unknown. Under the British rules, the sending bank and the receiving bank each cover half of the refund, except in cases of extreme negligence.
Canada isn’t there. Finance Minister François-Philippe Champagne told Marketplace the government is working to protect Canadians better. He mentioned Bill C-29, which would create a Financial Crimes Agency, and officers embedded with police forces. But he didn’t commit to making banks reimburse customers. He said, “we need to consult.”
I’m not telling you the U.K. system is perfect. Banks there recover their costs through fees from all customers, and some legitimate payments get delayed. But the practical point for you is simple. In Canada, you shouldn’t count on being repaid. Your best protection is stopping the loss early.
How to tell if this affects you
This pattern affects anyone with a bank account and a phone. A few things in the Mohammed story are worth checking against your own life:
- A call that looks like it comes from your bank. Caller ID can’t prove who’s calling.
- A caller who tells you your card is “evidence” or needs to be collected.
- A story that police are involved and a courier is on the way.
- Pressure to act right now, sometimes for hours, as in Bradshaw’s four-hour call.
Multiple major police services across Canada have publicly warned that they would never send a courier to collect debit or credit cards. If anyone offers to do that, it’s a scam. Full stop.
What to do in the first 24 hours
I can’t promise you’ll get your money back. I can tell you what gives you the best chance of limiting the damage. This is how I’d approach it, in order.
- Hang up. Don’t call back the number that called you. Call the number printed on the back of your card or on your bank’s official website.
- Tell the real bank what happened, right away. Say plainly that you handed over a card or shared information, and ask them to block the cards and freeze or watch the account. In Mohammed’s case money left within minutes, so every minute counts.
- Ask what they can do about money already sent. Ask whether any payment can be stopped or recalled. Ask for a claim or file number, and the name of the person you spoke to.
- Write down the timeline while it’s fresh. The phone number that called, what the caller said, the name they gave, when the courier showed up, when you noticed the loss. If you texted or got texts, take screenshots.
- Report it to police. Bradshaw and Mohammed both reported to police. A report gives you a record to hand to your bank.
- Report it to the national fraud reporting service too. This helps track the scammers, even when it doesn’t get you a refund.
- Change your online banking password and check your other accounts if you shared anything beyond the card. Use a different, strong password for each.
Signs something already went wrong
- Account alerts or transactions you don’t recognize, especially for stores in cities you’ve never been to.
- A text from a family member or a banking alert about money that vanished.
- A “courier” or “officer” who took something from you and then stopped answering.
- The caller knew your address or personal details. Bradshaw said this was the most frightening part. Treat it seriously, and tell police.
If you spot any of these, don’t wait until tomorrow. Start at step one now.
Don’t let embarrassment slow you down
CBC notes that victims often feel deep embarrassment and a loss of trust. I see why. These calls are built to wear you down, and Santander’s fraud lead described trying to “break the spell” the fraudsters create. Experts quoted in the report argue banks are better placed than the public to detect these scams, because they have sophisticated detection systems. You’re not supposed to out-detect professionals who do this all day. One scammer who spoke to Marketplace said he makes up to £5,000 ($9,400 Cdn) from each victim. This is a business for them.
So the fastest, most useful thing you can do is call your bank without feeling ashamed.
When to get help
Get help if you gave out a PIN, passwords or codes, let someone control your computer, or if business accounts or customer data could be involved. Also get help if your bank says you’re on the hook and you’re not sure how hard to push. Mohammed and his wife pleaded with Tangerine for months before reaching a partial settlement. Keep your notes and your timeline, because they are your evidence.
Need help with this?
I’m a SOC analyst and I help small businesses with exactly this kind of problem. Book a free call and I’ll tell you honestly whether you need help or just a couple of settings changed.