Posts Tagged ‘Wire transfer fraud’

Customer assumes risk of loss from hacker wire transfer fraud says Ontario court

April 28th, 2017

You’re a bank and receive instructions by e-mail to wire transfer funds from someone purporting to be your customer. But, the customer’s account was hacked and the e-mail was sent by a fraudster. You, the bank, have no reason to suspect any fraud and act in accordance with your account terms which require you to accept electronic instructions and pursuant to which the customer agreed to secure his account against hackers. Who bears the loss, the bank or the customer? An Ontario court recently examined this question in Du v Jameson Bank, 2017 ONSC 2422 and ruled in favor of the bank on common law and contract grounds.