Michael
BMO: Victim of Banking Fraud, Then Threatened With Collections and Denied Access to My Own Money
I am sharing my experience with the Bank of Montreal (BMO) because I believe prospective customers deserve to understand how a bank may treat them when they become victims of fraud. On August 12, 2026, my BMO accounts were compromised through a sophisticated impersonation scam. A fraudulent $10,000 cheque was deposited into my savings account, funds were transferred between my accounts, and 18 Interac e-Transfers totalling $9,550 were initiated. These are not simply allegations. BMO’s own final complaint decision, dated October 14, 2026, confirms the fraudulent cheque deposit, unauthorized activity I reported, and the involvement of a third party impersonating its Fraud Department. BMO recovered $4,001 but refused to reimburse the remaining $5,999. According to BMO’s investigation, a new device accessed my online banking, my password was changed, my account alert settings were modified, and transfers were sent to recipients who were not previously in my contact list. Despite these circumstances, BMO concluded that its security systems operated as intended because the required authentication steps had been completed. I strongly disagree with the bank’s decision and question why this sequence of unusual account activity was not prevented. However, the financial loss was only the beginning of my experience. Following the incident, BMO restricted my chequing and savings accounts, as well as my credit cards. Two subsequent Government of Canada pay deposits totalling approximately $8,010 entered my accounts, yet I reported being unable to access those funds while the dispute continued. This created significant financial difficulties. I was unable to conduct normal banking activities while continuing to receive requests for payment on my banking products. Then, on September 14, BMO issued a formal overdraft notice demanding payment of $10,092.23 arising from the returned fraudulent cheque. That letter warned of possible account closure, legal action, referral to collections, and negative credit reporting. Consider that situation: I reported being the victim of fraud, lost access to my normal banking services, and subsequently received a demand for repayment accompanied by warnings about potential damage to my credit. In its October 14 final decision, BMO maintained its refusal to reimburse the $5,999 and stated that restrictions on my accounts would only be reviewed once the negative balance had been covered. BMO offered a $1,500 goodwill credit, conditional upon accepting its proposed resolution, but expressly stated that the offer did not constitute an admission of responsibility. I have escalated my concerns to the Ombudsman for Banking Services and Investments (OBSI). My greatest concern is not simply that fraud occurred. Fraud can happen at any financial institution. My concern is how BMO treated me after I became a victim. I expected a bank entrusted with my salary and savings to provide meaningful support, clear communication, fair consideration of the unusual transactions, and reasonable access to my legitimate funds while the dispute was being addressed. Instead, my experience has been characterized by prolonged restrictions, financial uncertainty, threatening collection correspondence, and a final decision that I believe fails to adequately consider the circumstances. If you are considering opening an account with BMO, I encourage you to consider how important your bank’s response to fraud would be to you. For me, this experience has fundamentally damaged my confidence in the Bank of Montreal. I cannot recommend BMO based on the service and treatment I have experienced.



