An Airdrie woman is among several Canadians who have had their life savings stolen by a GIC scam that appears to come from a well-known company.
Samantha Barnes thought she was working with a reputable organization, PC Financial, but found out she had been dealing with imposters when her entire investment disappeared.
“I lost $233,000,” she said. “(It’s) absolutely devastating”
Barnes said she searched “best rates for GICs” online and was taken to a webpage for PC Financial, then called the number on the website.
She says she was offered a return rate of 6.1 per cent. The person she spoke with later sent Barnes documents on PC Financial letterhead.
After receiving those, she went to her TD bank branch to transfer the money.
She was sent information to track her investment, but it showed the money was drained.
“Even when I went to TD to do the fraud claim they were shocked,” Barnes said. “They said it looked very, very real.”
An Ontario man was similarly scammed out of his life savings.
“Seven hundred and fifty thousand dollars... you know how much I’d have to work to make that money?” said Walter Yamka of Oakville.
PC Financial has since added a warning on its website about the GIC scam and told CTV “PC Financial does not promote or sell GICs in person, over the phone or through email.”
Yamka said he later found out that criminals had been using the names of actual PC Financial employees and impersonating them.
He transferred money at CIBC and Barnes at TD but both think their banks should have recognized red flags.
“Our banks need to be held accountable,” said Barnes.
She said she even asked her bank manager why the money would be transferred to a BMO account that was not associated with PC Financial.
TD and CIBC provided CTV similar statements explaining that their staff are trained to ask questions when clients make large transactions but if a customer chooses to proceed, the banks follow their instructions.
‘Responsibility on financial institutions’
Cybersecurity experts say criminals pay search engines to pop-up first online and can create incredibly real-looking websites and documents, so banks should be doing more to protect their clients.
“I think there is a responsibility on financial institutions to make sure that the money is being transferred to a legitimate account,” said cybersecurity expert Ritesh Kotak.
Barnes and others who lost money to this GIC scam are working together trying to find solutions and warn others.
They have contacted several financial institutions and authorities in several countries.
RCMP say victims’ reporting fraud is essential in authorities being able to stop it.
“They like to prey on fears and embarrassment of fraud victims, so if people aren’t talking about it you’re doing exactly what the fraudsters want you to do,” said Alberta RCMP public information officer Cst Cory Riggs.
Police say anyone uncertain about a scam can get help by calling the Canadian anti-fraud centre, police or the number on the back of their bank card.
Barnes said she never thought she would fall victim, but criminals go into extreme detail in order to fool people.
“Never think it can’t happen to you,” she said.
