An 89-year-old man in Victoria, B.C. lost nearly $1.7 million in a prolonged impersonation scam that unfolded over six months, despite repeated warning signs and interactions with staff at both CIBC and RBC. The case raises serious questions about banks’ obligations to intervene when elderly clients show clear indicators of financial exploitation.
An elaborate impersonation scam left an elderly British Columbia man nearly penniless after fraudsters convinced him he was secretly assisting a national financial investigation.
According to reporting by CBC News, the scam began in June 2024 when the victim received a phone call from someone claiming to be a CIBC fraud investigator. The caller told him his accounts were connected to a major money-laundering operation and warned him not to speak to anyone, including family members, to avoid jeopardizing the investigation.
Believing he was helping authorities protect his life savings, the man complied. Over the next several months, he made repeated large cash withdrawals from multiple CIBC branches. In at least one instance, a branch manager identified the activity as unusual, froze the man’s ATM access, and sent a written warning about the risks of third-party transactions. However, the warning did not explicitly state that he was being scammed, and withdrawals continued.
When bank staff began asking more questions, the fraudsters instructed the victim to move his funds to RBC, claiming it would be safer. At RBC, he was allowed to obtain multiple bank drafts—some as high as $395,000—which were used to purchase gold. Couriers later collected the gold directly from his apartment.
By the time his accounts were depleted, the scammers—now posing as federal officials—told him he needed to pay a fictitious tax debt in order to recover his money. Only when he asked his daughter for a loan did she learn what had happened and realize he had been defrauded.
Democracy Watch co-founder Duff Conacher told CBC that the banks failed to meet their obligations under the Bank Act to protect customers’ financial interests. He also questioned whether mandatory reports to FINTRAC were filed, noting that such reporting is required for suspicious or high-value transactions. Neither bank confirmed whether reports were made.
Both CIBC and RBC declined on-camera interviews but said in written statements that they have fraud-prevention measures in place. RBC stated that the matter had been “resolved,” while the victim and his family are reportedly bound by confidentiality agreements, suggesting a settlement.
The case comes amid a sharp rise in fraud losses nationwide. Canadians lost more than $643 million to bank fraud in 2024, nearly triple the amount reported in 2020. While countries such as the United Kingdom and Australia have introduced laws holding banks financially liable when they fail to prevent fraud, similar reforms in Canada remain limited.
For the victim’s family, the financial damage cannot be undone. By sharing the story publicly, however, they hope greater awareness may prevent others—particularly seniors—from falling victim to similar schemes.
