The federal Liberals say they plan to direct banks to put new policies and procedures in place to detect and prevent fraud as part of a national strategy to fight scammers.
The proposed legislative amendments would require banks to obtain the express consent of account holders before enabling transfers and payment capabilities that fraudsters use to steal money.
The changes would allow account holders to disable features they do not want and adjust transaction limits to protect themselves.
The federal Canadian Anti-Fraud Centre reported that Canadians lost $643 million to fraud last year — an increase of nearly 300 per cent since 2020, the government says.
"To build a stronger country, we must, first and foremost, protect Canadians against all types of crimes, including financial crimes, scams and abuse," Finance Minister François-Philippe Champagne told a Monday news conference.
The government says it will work with banks and others to develop a voluntary Economic Abuse Code of Conduct that would set clear guidelines for dealing with situations where one person abusively controls another's access to money or credit.
Seniors are particularly vulnerable, especially when financial control by family members or caregivers turns to exploitation, the government says.
"Canada's financial institutions play a critical role in detecting signs of abuse early and providing safe pathways for victims and survivors," the federal Department of Finance said in a statement.
The government says it also will introduce legislation by next spring to create a Financial Crimes Agency to investigate money laundering, online fraud and scams, and to recover illicit proceeds.
The Liberals promised such an agency in their 2021 election campaign platform.
Champagne was asked at Monday's press conference why it has taken so long to launch the agency.
"Well, I'm taking that over now," he said. "So it's going to happen."
Champagne said the new agency would hire interested people from various federal agencies.
"You need specialized people. We'll be attracting the best," he said. "Fighting financial crime in the 21st century is something very complex, to be honest."
The measures announced Monday were billed as a preview of the federal budget, to be presented Nov. 4.
Duff Conacher, co-founder of the group Democracy Watch, said the Liberal government's rehashed promise to require banks to take mainly voluntary actions amounts to much too little, much too late.
The proposed steps "amount to more hot air promises" and are much weaker than customer protections Australia and England already have imposed on banks and telecom and internet companies, he added.
The federal anti-fraud centre has documented more than 30 types of duplicitous schemes targeting Canadian consumers and businesses.
The centre's most recent annual statistical report says individuals under age 50 were more likely to be victimized by fraud, while those over age 50 lost more money on average to fraud.
The total amount lost by people 60 and older accounted for about 40 per cent of the overall dollar loss reported to the centre, the report adds.
The Conservatives proposed during the spring federal election campaign to get Canadian banks and cellphone companies to do a better job of detecting scams, alerting potential victims and blocking suspected fraud in real time.
The Conservatives also promised that, if they formed government, they would increase fines and prison sentences for criminals who defraud vulnerable Canadians.
Picture Courtesy: THE CANADIAN PRESS/Spencer Colby
