Bank Charges Interest on Line of Credit Scammed by Con Artist, Victim Claims
James Mathelier, a victim of a sophisticated banking scam, alleges that his bank, Bank of Montreal (BMO), is now charging him interest on a line of credit that was fraudulently obtained by a con artist. Mathelier received a call that appeared to be from his bank, with the same caller-ID as BMO, informing him that his accounts had been accessed by fraudsters. The scammer then requested a verification code, claiming that it was necessary to confirm Mathelier’s identity.
“I knew I shouldn’t share codes over the phone, but he offered for me to call the bank back to continue this process. He said we had to act quickly because money was being withdrawn… I was panicking,” Mathelier stated.
However, after Mathelier shared the code, $15,452 was withdrawn from his line of credit over the next day. The scammer made two $7,500 withdrawals and one $1,452 withdrawal in Canadian cash. Mathelier immediately contacted both BMO and the police to report the incident.
To Mathelier’s surprise, the bank reimbursed only the $1,452 withdrawal, selectively choosing not to cover the rest of the funds that were fraudulently taken. Additionally, BMO is now charging him $200 in monthly interest for the remaining $15,000 in debt that he did not authorize. Mathelier is raising a toddler at home and has been deeply impacted emotionally by the situation.
“It’s been impacting my mental health. I can barely sleep,” he expressed.
Vanessa Iafolla, an anti-fraud consultant, highlighted a significant lapse on BMO’s part, noting that the bank should have noticed the “glaring red flag” when two large withdrawals were made on consecutive days. Despite issuing a partial refund, BMO claims that Mathelier is not covered by the bank’s fraud policies.
The bank responded by stating, “Please note that this is a scam, which unfortunately is not covered by our fraud services; therefore, the Bank of Montreal is not responsible for the loss incurred.”
Victims of scams and fraudulent activities often find themselves in a difficult position, with little recourse for recovering their funds. Mathelier’s case is a stark reminder of the need for increased vigilance and security measures to prevent such incidents from occurring.
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