A Torys publication was recently referenced in a National Post article discussing the common risks, challenges and complications associated with wire and e-transfers in Canada. Wire transfer fraud is becoming increasingly common, whether it is conducted by impersonating an individual or hacking someone’s account to redirect an e-transfer. The referenced Torys bulletin , which is authored by partners Julie Himo and Molly Reynolds; senior associate Nic Wall; and associate Mavra Choudhry, lays out how Canadian courts have previously ruled on liability in wire transfer fraud. The bulletin also underscores that financial institutions, in particular, should ensure their practices meet a reasonable standard of diligence. With this said, the extent of a bank’s duty to warn their clients about known fraud risks is also not fully settled, the bulletin points out, adding additional complications and considerations.

Source: National Post June 06, 2024 19:05 UTC