Case Studies

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debit card fraud

Consumer responsible for unauthorized transactions after not taking enough care to protect his debit card and PIN

Posted Friday, February 26, 2021

Key lessons:

  • If you have a debit card, you have agreed to use it subject to the obligations in the cardholder agreement you made with your bank when the card was issued. Breaching these requirements can leave you responsible for any financial losses that occur.
  • Cardholder agreements include a number of important obligations, including being careful to keep your card number, PIN (personal identification number) and bank passwords confidential at all times. If you have not protected...

fraud

Bank customer is a victim of multiple incidents of fraud

Posted Friday, December 18, 2020

Key lessons:

  • Unfortunately, not all frauds are committed by strangers. “Familiar fraud” refers to situations where someone who has access to the personal information and financial documents of a family member or close friend assumes their identity to gain access to money in their accounts.
  • Although banks have security measures to reduce the risk of fraud, consumers must keep their personal information such as security questions and PINs (personal identity numbers) confidential...

investment suitability

Investors incur significant losses and seek compensation, believing themselves to be unsuitably invested in high-risk securities

Posted Tuesday, November 10, 2020

Key lessons:

  • Investment suitability is not determined on the basis of losses. Investment suitability is based on the risk profile of an investment at the time that advice about it was given.
  • Every investment has the possibility of gains and the risk of loss, and the amount of each is usually closely matched. The advisor’s role is to recommend suitable investments, but they cannot predict the future nor guarantee results.
  • Investors should monitor their investments and stay informed...

mortgage

Bank errors when arranging a mortgage transfer lead to costly penalties for borrower

Posted Monday, August 31, 2020

Key lessons:

  • Financial institutions are responsible for financial harm caused by their own administrative errors and delays.
  • Consumers can protect themselves by ensuring that arrangements for time-sensitive transactions are finalized well in advance and carefully reviewing all paperwork to ensure it matches their expectations.

Consumer decides to transfer mortgage to a new lender

Mr. G held a mortgage at Bank A that was maturing. A few weeks before the maturity date, he met with a...

fraud

Retired consumer targeted in text message scam

Posted Wednesday, July 29, 2020

Key Lesson:

Everyone is a potential victim of fraud and should take steps to protect themselves and their loved ones. Every day, fraudsters target consumers with elaborate scams that exploit familiar technology such as text and email. They use reasonable-sounding scenarios such as password resets, fraud alerts or prize draws to trick consumers into clicking links or disclosing personal information and passwords. Consumers should never provide banking or personal information to...

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