A 78-year-old Winnipeg woman is warning others about online banking risks after fraudsters hacked into her home computer and used her compromised accounts to push through more than $174,000 in fraudulent transactions. The victim is now suing her credit union after being held responsible for the unrecovered portion of the loss
.A Winnipeg woman is speaking out after being left with more than $174,000 in debt following a series of online banking frauds that took place in May 2024. Linda Klassen, 78, says someone gained remote access to the laptop she and her late husband used for online banking, allowing fraudsters to take control of their email and financial accounts over an 11-day period.
The initial breach led to fraudulent activity at two credit unions. At Access Credit Union, two bogus cheques worth $50,000 each were deposited remotely and quickly redirected to fraudulent payees. Access Credit Union covered those losses and did not hold the couple responsible.
But soon after, four additional fraudulent cheques—totalling $292,000—were deposited into the Klassens’ account at Steinbach Credit Union. The fraudster used the funds for a series of unauthorized bill payments, leaving the account heavily overdrawn. At the time, the account held just $6.86 because the couple did not use it for regular banking.
Steinbach Credit Union recovered more than $117,000 through insurance and tracing efforts, but the remaining shortfall exceeded $174,000. Klassen later filed a lawsuit in July 2025 seeking reimbursement of three times the outstanding amount, along with additional damages. The claim alleges the credit union failed to identify and stop the fraudulent activity, despite the unusual account behaviour and the reported hacking incident at the couple’s other financial institution.
In its statement of defence, Steinbach Credit Union denies liability, arguing that the loss could have been prevented had the Klassens notified them immediately when the earlier fraud occurred at Access Credit Union. The credit union points to the electronic services agreement, which requires customers to report any compromise of login credentials right away.
Klassen says she never learned how the hackers gained access to their laptop, and that she and her husband believed their Steinbach account remained secure because the fraud at Access Credit Union did not appear to involve shared passwords. The couple did not notify Steinbach immediately, she says, because they did not yet realize their computer had been compromised.
The Winnipeg Police Service confirmed the case has been assigned to the financial crimes unit, though no suspects have been identified.
Experts warn that account-takeover schemes continue to pose risks, particularly when older adults use shared or unprotected devices for online banking. Common vulnerabilities include weak or reused passwords, phishing links, and the absence of two-factor authentication. While many financial institutions use fraud-detection tools, losses cannot always be intercepted in time.
Klassen says the experience has been life-altering, leaving her feeling violated and overwhelmed as she seeks accountability and financial recovery through the courts.
