Mr. Speaker, I will be splitting my time with the hon. member from Milton East—Halton Hills South.
I think we all know that fraud in Canada is a growing problem. Stories are now appearing in the media virtually every week. Data from the Canadian Anti-Fraud Centre shows that Canadians lost $638 million to fraud in 2024. Reported losses to the CAFC since 2021 have now surpassed $2 billion. The rate of frauds being reported remains low, with an estimated only 5% to 10% being reported, so the problem is understated and in the billions of dollars.
We know that fraudsters generally target the most vulnerable people among us, such as seniors, new Canadians and young people. Bank fraud in particular is a significant concern in Canada, yet investigations by financial institutions often end with banks' blaming the very customers who trusted them with protecting their money. This raises the issue of the proper responsibility of banks to their depositors and the role of the federal government in regulating or not regulating them properly.
I would like to share with the House some real examples that have been brought to my attention recently by constituents in Vancouver Kingsway. For case number one, I will read from the letter I received:
“In early September, my dad, a 67 year old retiree called me in a panic. He had just realized he had been scammed out of his entire life savings and more. He was involved in what we believe was a ‘pig butchering’ scam. He was told he was investing in cryptocurrency—he had a wallet which showed incredibly high returns. When he went to withdrawal, he was hit with yet another fee of $90,000 USD to do so. His ‘partner’ who was to be paying the fees to share in the investment suddenly said she didn't have anymore money. This is when he realized.
“...Going through the details of the scam ended up showing that my dad didn't purchase crypto in a typical way. He was directed to the bank to wire money to several different locations. Locally here in Vancouver, then to New York and then finally to Vietnam.
“My dad opened a new account at BMO in April 2025 and thus the transactions begun. Every 10-14 days my dad went to the same branch on Mainland Street in Yaletown and sent anywhere from $100,000-$300,000 USD to accounts based in Vietnam under the guise of ‘purchasing auto parts.’ Every single time he wire transferred the money, the same branch manager signed off on it. No questions asked. By the end of August he had drained most of his RRSPs, remortgaged his home, took out personal loans, and borrowed from family and friends. l'm dumbfounded by the fact that the branch manager at this location never noticed the red flags: a brand new customer, a senior retiree, purchasing nearly $2 million dollars in auto parts from a personal bank account.
“I filed a complaint against BMO.... They refuse to answer if my dad was ever reported to FINTRAC. They replied that he signed off on the wire transfers that stated if he was being coached into cryptocurrency he shouldn't go through with it—none of the wire transfers use that type of language. Further, BMO states that they have a policy in place for prevention of fraud with seniors—obviously this policy wasn't followed in this instance. There has been zero accountability for what happened from BMO. They have said they will not return or refund any of the money and that this was completely my dad's own doing.
“My dad died of a sudden fatal collapse on January 5th, 2026. Months of stress and uncertainty, embarrassment and emotional toll had taken place. He had nothing. Forced to sell his condo to pay off some of his debt but seemingly about to be homeless.
“Fraud is abundant. We read about it all the time. I simply don't understand how the bank could see such large sums of money to be transferred with no regard. And at this point, they simply do not care....
“But I do want something good to come out of his death—more people need to hear stories like this for real change to happen....
“The lack of responsibility by BMO has changed the course of my life. My dad will not get to watch [my or my sisters'] families grow up. He will never financially contribute towards us. We are now left with the bill of his death and bankrupting his estate. lt's a devastating end.”
Example number two is Mrs. L, a 79-year-old senior who was the victim of a devastating financial fraud that resulted in the loss of a significant portion of her retirement life savings. Fraudsters impersonated law enforcement and coerced her into selling her retirement investments in her registered retirement accounts and wiring the money abroad to them from local RBC and TD branches. She lost some $400,000 in her life savings. To add insult to injury, she now faces a significant tax liability from the CRA due to this, despite already having suffered a complete financial loss of much of her retirement savings. Because she withdrew RSP savings, which were then stolen, she now has to pay taxes on these monies, even though they have been lost to her.
The NDP recently moved seven amendments to Bill C-15, the budget 2025 implementation act, no. 1, aimed at strengthening protections for Canadians targeted by bank-related fraud. Unfortunately, Liberals and Conservatives combined to defeat them, and we see nothing addressing this in these estimates. Our amendments would have required banks to reimburse customers who fall victim to consumer-targeted fraud, unless they have been grossly negligent in relation to that fraud. Banks would have also been required to report anonymized consumer-targeted fraud data, so we could get a better understanding of the scope of this problem. The Financial Consumer Agency of Canada would have been required to conduct regular unannounced audits of banks' anti-fraud practices and policies, publish detailed fraud statistics and make its annual fraud report public, so that we could make sure that banks are actually following through on the policies they claim to have. The amendments also sought to make decisions of the Ombudsman for Banking Services and Investments binding.
These measures were recommended by advocacy organizations, including Option consommateurs and Democracy Watch, which argued that without mandatory audits, transparency, and accountability mechanisms, existing anti-fraud rules would remain ineffective.
The United Kingdom recently brought in new rules requiring that a consumer who is a victim of a fraud known as an APP scam, which is a scam wherein the scammer convinces the victim to make a payment, must be reimbursed, unless there is gross negligence on their part. In Quebec, the Consumer Protection Act was recently amended to impose reimbursement obligations on financial institutions in cases of fraud involving a consumer's bank account.
I want to quote Democracy Watch, which noted this:
It is not enough to just require the banks to have policies and procedures in place. The Bank Act was changed in 2018 to add...two provisions requiring banks to have policies, procedures and training to ensure the financial interests of their customers are protected...but the FCAC was not required in those provisions to audit the banks to ensure they comply with those provisions and, as a result, the FCAC has done nothing to ensure they actually comply....
The new anti-bank account fraud measures will also have little effect unless the FCAC is required to conduct regular, unannounced audits and to prosecute and penalize violations...
Option consommateurs noted this:
We believe that an approach that holds banks more accountable will not only allow thousands of Canadians who are victims of fraud to be able to recover their money, but it will also decrease the occurrence of such fraud. By placing greater responsibility on banks, the legislative framework will incentivize these businesses to deploy the appropriate measures to prevent their losses.
The example of the United Kingdom is a clear illustration of this. According to the Payment Systems Regulator, following the entry into force of the new consumer protection framework, the number of claims for...fraud decreased by approximately 15% between October 2024 and June 2025, compared to the same period [the year before].
With the advent of AI and growing technology, the prospects of fraud growing in this country are chilling. Imagine a senior answering the phone and hearing the computer-generated voice of their bank manager or their grandchild, who is asking them to wire money somewhere. This is the kind of technology that exists now, yet we are operating on outdated legislation. Although the government did put a financial crimes agency in the budget, which is a good step forward, it can and should do much more to help protect Canadians from fraud in this country. New Democrats will certainly work together to help make that happen.