Hon. Danièle Henkel: Honourable senators, I rise today during the consideration of Bill C-15 to speak on a pressing issue that directly affects the financial security of millions of Canadians: bank fraud. We hear about it in our offices, in our communities, in our families. In short, we hear about it everywhere. This is not an abstract issue. It is not a theoretical debate reserved for lawyers and financial sector specialists. Behind the figures I am about to mention are faces, families, lives turned upside down and someone’s existence shattered by a single click.
[English]In 2024, scammers defrauded Canadians of $638 million. In 2025, that figure rose to more than $704 million, according to the Canadian Anti-Fraud Centre. Yet, these figures capture only a fraction of the problem.
The RCMP itself estimates that just 5% to 10% of victims report fraud. The true cost is likely in the tens of billions of dollars, and the trend is worsening year after year. Every dollar stolen from a Canadian does not simply disappear; it fuels criminal networks that then act against Canadians.
At a time when we are working to rebuild our economy, we are allowing hundreds of millions of dollars to slip away every year into the pockets of fraudsters. That is money lost to our families and to our communities, and it’s money gained by organized crime.
But beyond the numbers lies an even harsher reality: Lives are being shattered. Retirees are losing their life savings. Families are watching their emergency funds vanish. Vulnerable individuals are suddenly left without resources or recourse.
[Translation]Data from the Canadian Anti-Fraud Centre confirms that fraudsters target people under the age of 50 the most, but victims over the age of 50 suffer much greater financial losses on average.
Furthermore, beyond the financial losses, there are significant psychological and social consequences: distress, shame and isolation. All too often, victims are unfairly blamed.
These people are not careless. They are confronted with increasingly sophisticated schemes: phishing, SMS fraud, identity theft and fake investment opportunities. These scams rely on manipulation, the hope of a better life and a sense of urgency. Even the most cautious people can fall for them.
Like many other public figures, I myself have been a victim of identity theft: my image and even my voice were used without my knowledge to convince Canadians to invest in bogus financial opportunities. I therefore know first-hand the helplessness one feels when faced with this machine.
But for Canadians who lose their savings, the ordeal doesn’t end with fraud. It keeps going when they contact their bank only to learn that the bank has authorized the transaction. They’re told that they’re liable. Then they’re confronted with inscrutable internal policies that change from one institution to the next, all of them particularly unfavourable to victims who are left feeling completely powerless. Consumers are systematically left holding the bag, while the banking system shows little inclination to cooperate.
Yet this situation is by no means inevitable. In cases of credit card fraud, the law protects consumers. The consumer’s liability is capped at $50, and in practice, credit card networks often have a zero liability policy.
However, if the fraud involves a debit card, Interac transfer or online payment, there is no federal law — none — requiring that banks refund fraud-related charges. In practical terms, consumers are left to deal with their bank on their own. The bank is the one that decides based on its own rules.
It’s no accident that this is precisely where the losses are greatest. The Canadian Anti-Fraud Centre reports that, in 2024, e-transfers and money transfers accounted for more than $200 million in losses compared to about $30 million for credit cards.
The conclusion is clear: Where protection is provided by law, the losses are contained; where no law exists, the losses are astronomical.
[English]Given the scale of the problem, our Banking Committee examined Division 16 of Part 5 of Bill C-15, which amends the Bank Act to introduce provisions targeting consumer fraud. We heard from witnesses, experts, consumer protection agencies and public organizations responsible for overseeing the banking and financial system. The conclusion was clear: The measures in Bill C-15 are woefully inadequate.
In practice, the bill largely requires banks to establish their own policies to detect and prevent fraud and to mitigate its impacts. This is a shift of responsibility disguised as reform, not a meaningful framework for consumer protection.
The bill also requires banks to report certain fraud-related data to the Financial Consumer Agency of Canada. However, this data would not be made public, yet transparency is precisely what is required to meaningfully change the game. Imagine a public report listing each bank’s fraud rate. If one bank reports 1% and another reports 5%, the consumer choice would be clear. Transparency would drive competition, giving banks a strong incentive to invest in prevention. Their reputation and their clients’ trust would be directly at stake.
The minister — and many public agencies that appeared before the Senate committees — described these provisions as a first step. I respect this caution, but I cannot share it. When losses reach this scale, we are no longer at the stage of first steps; we are already behind.
And this is not just my assessment; it is the conclusion of the very agencies tasked with protecting consumers. They are calling on the government to take the lead and significantly strengthen the legislative framework.
[Translation]While Canada remains in wait-and-see mode, similar countries have decided to act swiftly to protect their citizens and correct the prevailing power imbalance.
In the U.K., when a customer is tricked into making a fraudulent money transfer, the bank must now reimburse them unless there has been gross negligence. The burden of proof rests with the bank, not the victim.
The results are very clear. The number of claims for this type of fraud fell by around 15% in the months after the new regime came into force because banks now know they will have to compensate victims, so they are investing more in detection and prevention.
Australia, for its part, has introduced the Scam-Safe Accord, which involves banks, telecommunications providers and public authorities. This, too, has produced tangible results. From 2023 to 2024, the number of fraud reports fell by around 18% and financial losses dropped by nearly 26%, according to the National Anti-Scam Centre.
While other democracies are protecting their citizens, Canada is currently leaving its consumers to face fraudsters alone. Situations like these make me wonder: If solutions exist, why aren’t we implementing them?
My point is that fighting fraud is not an expense; it’s an investment. Banks themselves lose millions of dollars every year. By investing in robust anti-fraud systems, they can protect consumers, but they will also protect their own bottom line. At the end of the day, everyone wins. That’s why I can’t fathom why no substantial amendments were adopted during consideration of the bill in the other place.
[English]This also concerns a fundamental pillar of our economy: confidence in the banking system. When Canadians lose their savings because of fraud and their bank fails to support them, confidence in the system begins to erode.
At a time when our government is focused on strengthening the economy and protecting Canadians’ purchasing power, addressing this gap would support economic stability and reinforce public trust. It is my sincere hope that the government will take seriously the message we, as senators, are sending on this issue and act urgently on this matter.
Honourable colleagues, it is precisely the role of the Senate to raise the alarm on these issues. Free from immediate pressures and with a long-term perspective, we have a responsibility to give voice to these concerns when Canadians are not sufficiently protected.
The proposals made in Bill C-15 fall short of what Canadians have every right to expect. It is time for the government to create a framework that truly protects Canadians, holds banks accountable and sends the clear signal that Canada will no longer be an easy target for fraudsters nor a playground for organized crime.
Thank you. Meegwetch.