Scotiabank held a B.C. man liable for $20K in credit card fraud until media inquiries prompted a full refund, raising concerns about banking transparency.
Vancouver Man Caught in Costly Fraud Dispute
Last October, Vancouver resident Jordon Judge received a phone call claiming to be from Scotiabank while sitting in a local coffee shop. The call appeared legitimate, but it was actually a sophisticated spoofing scam. The caller reported suspicious activity on Judge’s Visa card and reassured him the charges would be blocked. Yet, days later, Judge found nearly $20,000 in unauthorized transactions on his statement.
Fraudulent Charges Spark Shock and Dispute
The unauthorized purchases included $17,900 to Anglia Ruskin University in the U.K. and $1,800 to a person named Paula S. Taylor. Despite alerting the bank and denying any involvement, Scotiabank told Judge he was liable. Their rationale: a one-time passcode (OTP) sent to his phone was used, implying that he had authorized the transactions—something Judge firmly denied.
Growing Issue, Limited Protections
Credit card fraud is on the rise in Canada, according to the Canadian Anti-Fraud Centre, which links an increasing number of identity theft cases to compromised cards. Under federal rules, liability for unauthorized charges is typically capped at $50 unless a bank can prove gross negligence. Yet, experts argue that financial institutions are not providing adequate transparency or evidence when assigning blame.
Bank Offers No Evidence, Refuses Questions
Judge says Scotiabank gave no explanation beyond its assertion that the OTP use “indicated” he was responsible. Cybersecurity expert Claudiu Popa criticized the bank’s handling of the case, stating there was no sign of a detailed investigation. He noted the OTP system—delivered by SMS—can be intercepted by spyware or SIM hijacking, and is far less secure than authenticator apps.
Advocacy Groups Demand Accountability
Consumer protection advocates, including the Public Interest Advocacy Centre and Option consommateurs, are calling for legal reforms. They argue banks must be required to prove negligence before denying fraud claims and must be transparent during investigations. Geoff White of PIAC noted, “The onus is on institutions to secure their systems—not individuals to prove innocence.”
Resolution Only After Media Involvement
Despite repeated rejections from Scotiabank, Judge’s case took a turn when Go Public began making inquiries. Anglia Ruskin University confirmed the bank had never contacted them, yet agreed to refund the charge after the media reached out. Shortly after, Scotiabank credited Judge’s account for the full amount, including interest—without any explanation or apology.
Calls for Change After Long Ordeal
Though Judge was ultimately reimbursed, he says the months-long struggle left him disillusioned. “It’s ridiculous that it took media involvement for them to care,” he said. Popa warned that many others without media backing may never get justice. “People are being silently victimized,” he said, urging systemic reforms to better protect Canadians from complex fraud and institutional indifference.
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