Exclusive: Banking scam steals $111,000 from Hamilton Road BIA

The Hamilton BIA fell victim to a phishing scam and had their account drained of approximately $120,000. CTV’s Daryl Newcombe reports

The Hamilton Road Business Improvement Association (BIA) is out $111,000 after online scammers gained control of its bank account this summer.

The extent of the theft is only coming to light now.

“In the summer, unfortunately, our executive director fell prey to a phishing scam. Someone was able to breach our bank account,” explained Coun. Hadleigh McAlister who sits on the BIA’s Board of Directors.

Scotiabank has notified the BIA that because the executive director’s credentials were used to access the account, the bank isn’t liable for the losses.

“What the investigation revealed was with these phishing scams, when their sites are mirrored, essentially the banks don’t have any liability (when) your credentials are stolen,” McAlister added.

Of the $125,000 stolen from the bank account, only $14,000 was recovered.

According to McAllister, the stolen money was unspent funding from the special tax levy payment charged to area businesses and a grant provided by City Hall.

Intended to fund initiatives until the end of 2025, the Board of Directors addressed the financial loss by reducing staff and other cost saving measures.

“We cut back. We didn’t ask for any new funds from the city,” said McAlister. “We maintained services with the money we still had. Next year when we go into 2026 we can have a budget that will still maintain the service our members rely on.”

Next door to the BIA’s Office, the substantial theft was news to the owner of London Prints.

“They definitely should have been more transparent,” said Aaron Campbell. “I asked them what was going on. They just said they’re moving some stuff into storage - and now they’re gone. I had to learn from the news what happened!”

McAlister said the Board has been actively addressing the issue since the theft, “Essentially through the summer, there were ongoing investigations. We needed to let those run their course, see where we were financially, and then make decisions in terms of the budget for next year.”

McAlister said more details will be provided to members at the BIA’s Annual General Meeting (AGM) next week, “We’ve switched financial institutions, and moving forward looking at insurance measures to guard against any future scams.”

The Hamilton Road BIA’s AGM will be held at 7:00 a.m. on Oct. 29 inside the Crouch Public Library.