Scammers stole $200K from my home reno HELOC — and the bank says I’m on the hook

Melissa didn’t give them her password. But by directing her to click a link to a fake login page, the scammers captured her credentials and used them to access her laptop. Soon after, they had full access to her bank accounts.

The moment she discovered the theft — and what the bank said

Melissa rushed to her bank branch. The teller froze when she loaded the account. “This doesn’t look good,” she said quietly. “This appears to be authenticated activity. You may be responsible.”

A fraud investigator from the bank confirmed what she feared: the bank considered the transfers “client-authorized,” because the scammers had logged in using Melissa’s credentials. The burden of proof was on Melissa to show that her money had been stolen.

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Why it matters

While the above story is fictional, it's based on a very real situation — and illustrates an alarming increase in the number of Canadians falling victim to financial fraud. Victims of fraud and cybercrime in Canada lost more than $638 million in 2024, an increase from the previous year's loss of $578 million (1), according to the Canadian Anti-fraud Centre (CAFC).

The Ombudsman for Banking Services and Investments (OBSI) investigates complaints from Canadians who’ve been victimized by financial scammers. In 2022, it opened 213 cases related to bank fraud. In 2023, it opened 946 fraud-related cases, a 350% rise over the previous year. In 2024, it says 68% of the fraud cases it looked into were related to e-transfers.

Are you responsible for transfers you don’t authorize?

Financial service firms don’t automatically reimburse fraud victims. Generally speaking, it depends on how the fraud occurred. Your bank or credit card company will investigate the role you played in what happened, whether you acted reasonably and whether you complied with the terms of your account agreement.

The rules that protect Canadians against bank fraud tend to focus on credit- and debit-card transactions. For example, the consumer-protection rules set by the Financial Consumer Agency of Canada (FCAC) limit the liability for victims of unauthorized debit or credit card transactions to $50 (2).

But when it comes to e-transfers or withdrawals on lines-of-credit, the safeguards are less clear. The rules vary depending on the bank’s own policies. For example, some banks might say that the password used as part of a fraudulent e-transfer wasn’t strong enough and deny the victim compensation.

Tip: Using a spending account that isn’t linked to your main credit lines can add an extra layer of protection. KOHO offers cash back accounts designed for day-to-day purchases — and by separating accounts you help reduce how much is exposed if something goes wrong.

What recourse do you have if you are the victim?

If you can prove that you acted reasonably — you didn’t share your password or knowingly send someone money — the OBSI can recommend compensation. But OBSI’s powers to compel banks to reimburse people are limited, as even the organization itself admits it has “no legal or regulatory basis” to do so.

What to do if this happens to you and how to prevent it

• If you suspect someone has transferred money out of your account, or withdrawn funds from your line of credit, report it to your bank immediately.
• If your bank decides you were responsible for the transaction (as in, you or someone pretending to be you “authorized it”) and denies you compensation, you can file a complaint with OBSI.
• Report the theft to your local police. Even if they tell you that it’s unlikely they can help recover the money, having official documentation may be useful. You could also try filing a complaint with the FCAC.
• Beware of random phone calls about fraud prevention from people claiming to represent your bank. Your bank would never call you and ask for one-time passcodes, personal information, or access to your computer. Nor would it ask you to visit a website and click a link. Hang up and call the number on the back of your card.

Tip: If you rely on a home equity line of credit, it may be worth reviewing your limits, alerts and access settings — especially if it’s connected to your day-to-day banking. Another task is to monitor your credit, so you can catch fraud early. Borrowell offers free credit monitoring and alerts so you can see if suspicious activity shows up on your file.

The takeaway

Financial fraudsters are growing increasingly sophisticated. What’s more, the rules in place to protect Canadians from falling victim to their scams have gaps when it comes to things like e-transfers. While you do have options in the event someone steals your money, in many cases it remains your responsibility to take the necessary precautions.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

RCMP (1); Government of Canada (2)