Winnipeg woman warns of scam that nearly cost her close to $20K

A Winnipeg senior is warning others to be vigilant after someone tried to scam her out of nearly $20,000.

Arlene Reid, 70, said she received a voicemail in March from someone claiming to be from CIBC. The caller alerted her to a debit transaction she had supposedly made. Reid was instructed to call back if the transaction was not legit.

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Not recognizing the charge, she did just that. The person who answered said the transaction was 'an inside job' with the bank, and they needed her help investigating it.

They instructed her to call the actual CIBC fraud line, claiming the RCMP was recording the call.

"They said they could catch him red-handed. They just needed the employee number. They just needed this phone call," Reid told CTV News Winnipeg in an interview.

Once she was on the line with CIBC on her cell phone, the fraudster instructed Reid through her landline on what to say to the bank.

It escalated from there.

"He's telling me, 'Say yes, say yes. Authorize this, authorize that,'" she said.

"At the end, (the bank) said, 'If you've answered yes and if you know this is a scam, you will be responsible for it.' Well, I didn't know it was a scam. I thought I was talking to CIBC, and they got me for a line of credit for $9,500."

The charges didn't end there.

She woke up the next day and realized she had likely fallen victim to a scam. She went to the bank and met with a financial advisor, who put her in touch with CIBC's fraud department.

That's when Reid learned a scammer had somehow also made a charge on her Visa to the tune of another $9,900.

CIBC's fraud department told her not to worry about the credit card charge, Reid said, as they typically pend for 36 to 48 hours, but the line of credit could be a problem.

She had to go through an appeals program with the bank. The line of credit was eventually pulled, but she is still fighting to get the Visa charge wiped. That case is before Canada's Ombudsman for Banking Services and Investments.

"I'm not paying my Visa. It's not mine. I didn't do it, and so I'm still fighting it."

A spokesperson for CIBC said the bank is still reviewing this matter for its client.

They say there are processes and controls to prevent unauthorized transactions, and their team is trained to ask questions when transactions do not fit the client's usual banking pattern.

"If, despite these controls, a client authorizes the transaction, it would be processed," the spokesperson said in an emailed statement.

"This is a very unfortunate situation, but clients do have a role to play in recognizing scams and protecting themselves against them, including keeping personal or banking information safe and secure, and being forthcoming when speaking with the bank about the purpose of a payment or transfer and before authorizing a transaction."

'They know what they're doing'

Constable Claude Chancy with the Winnipeg Police Service (WPS) tells CTV News Winnipeg they have had numerous reports of fraudsters posing as representatives from financial institutions, using a number of tactics and scenarios to con the victim.

These scammers can glean a lot of information online, he said, and are using it for financial gain.

"This is a multi-billion-dollar industry throughout the world. Canada is not immune to this. We've had this across the border, all across the world, and a lot of times driven through organized crime as well, so they know what they're doing," he said.

The city has seen a rise in fraudulent reports over the past couple of years. According to WPS data, there was a 29 per cent increase between March of 2022 and March of 2023, and another 17.5 per cent jump the following year.

"That's very concerning," Chancy said.

He notes there are ways to protect yourself. He reminds the public a financial institution will not typically ask you for personal information.

If they do, hang up and call them back directly or go in person.

"They'll be able to authenticate if that threat is real or not," he said.

Caller ID can be deceiving, he adds. Scammers have technology to mask their voices and even their phone numbers, making it appear as though they are calling from your financial institution. The number that the scammer called Reid from, for example, showed up on her caller ID as coming from CIBC.

If you do fall victim to a scam, Chancy said to call police.

"Not only are they more able to perhaps get those funds returned to them, but it also protects other future frauds and victimization of our citizens."

Meantime, Reid is still fighting the credit card charge.

She wants others to be aware it can happen to them, and to take steps to protect themselves.

"People fall for it, not just the elderly people – anybody. I learned the hard way, and I'm still fighting it."

- With files from CTV's Michelle Gerwing