A Nova Scotia TD Bank customer says he was left responsible for nearly $15,000 in fraudulent e-transfer losses after money was transferred from his account and line of credit. The bank reportedly denied reimbursement, saying the transactions involved his credentials, regular device, IP address, and one-time passcodes.
A TD Bank customer in Dartmouth, Nova Scotia says he was left responsible for nearly $15,000 in losses after what he describes as an account takeover involving unauthorized e-transfer activity.
Shakir Ahamed said he was at work last July when he received a warning from TD that he was approaching the limit on his line of credit. Ahamed said he had not been using the line of credit and immediately suspected something was wrong.
After going to his local TD branch, he learned that a series of e-transfer “accept request” transactions had allegedly been made from his account over several days. The transactions left him nearly $15,000 in debt.
Ahamed reported the matter to TD’s fraud department and filed a police report. However, TD later told him that he was responsible for the loss. When he appealed the decision, the bank said the transactions were completed using his IP address and that one-time passcodes had been entered.
Ahamed disputes that explanation. He says he did not receive the passcodes by phone or email and only learned of the transactions eight days after they began. He also says the bank has not provided enough information to show how it ruled out hacking, malware, IP hijacking, or another form of account compromise.
The matter was also reviewed by the Ombudsman for Banking Services and Investments, which did not recommend compensation. According to the report, the ombudsman’s review found that Ahamed’s sign-in credentials had been used.
TD declined an interview but said one-time passcodes were sent to Ahamed’s phone and that his regular device was used to complete the transactions. The bank also said it has multiple layers of security, monitoring, and customer education in place.
A cybersecurity expert cited in the report said the bank had not demonstrated that Ahamed was negligent. The expert also noted that financial institutions are increasingly denying reimbursement claims while providing limited evidence to customers about why they are being held responsible.
The case highlights a growing concern in online banking fraud disputes: whether a customer should bear the loss when a bank determines that credentials, devices, or passcodes were used, but the customer insists the activity was unauthorized.
For consumers, the incident is a reminder to monitor accounts frequently, act quickly on unusual alerts, report suspected fraud immediately, and keep detailed records of communications with financial institutions. It also underscores the importance of asking banks for a clear explanation when reimbursement is denied, especially where the customer believes their account may have been compromised.
As account takeover fraud becomes more sophisticated, disputes over responsibility between banks and customers are likely to remain a significant issue in Canadian consumer fraud cases.
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Originally published on Canadian Fraud News.