Banks promote e-transfers as an easy and safe way to transfer money. For some customers, the “easy” part is correct, but not the “safe” part.
In most cases the banks say it’s the customer’s fault for having weak security questions and will not compensate for lost funds.
A Canadian man transferred $3,000 in two emails to a contractor as payment for work on his house, but the contractor never received the money.
Apparently someone had redirected the transfer by hacking into the contractor’s email and figured out the security question- “what is your wife’s name” by going onto the contractor’s Facebook page where his wife was mentioned.
In a similar case, a woman lost $1,734 dollars. The security question was “who is my favourite Beatle”, but also allows four tries at the right answer.
Again in most of the many cases of e-transfer theft, the money is re-directed into an account at another bank.
Banks: Not our problem
“Don’t worry, the money isn’t being sent by email. Once the recipient accepts the transfer or request, the money is sent using existing secure payment networks banks have used and counted on for years.” Bank of Montreal website