New Brunswick woman e-transfers over $3.5K to wrong person, calls for guardrails

A New Brunswick woman accidentally sent $3,500 to the wrong email.

Marsha Manuel sent an e-transfer of $3,565 to the wrong address one month ago on March 14. She’s still waiting resolution.

“It was towards a kitchen restoration, like a down payment. And I sent the e-transfer to the email address; it popped up that it had automatic deposit. So, I sent the e-transfer, and the recipient was with me and did not receive the notification,” she told CTV News.

She asked the recipient to repeat their email and realized she had a typo in the first one.

“So, I immediately went online and tried to cancel the e-transfer, but because it had autodeposit, I was unable to cancel from home. I immediately contacted Scotiabank customer service, and they put me through to the security department,” says Manuel, who lives in Miramichi, N.B.

‘I am in a panic’

She waited online for around 20 to 25 minutes.

“When I got through, the agent said, ‘Oh, you’re within the half hour, I should be able to cancel it.’ And he was trying to cancel it, and he could not because it was autodeposit. So, I am in a panic because I’ve sent a large amount… to the wrong person," she says.

Manuel explained that the agent she was speaking to said they would work on a resolution.

“He told me not to worry, that I was going to be able to get my money back, and that if he opened up a claim, it was going to freeze the other person’s account,” she said.

“And the advice he gave me; he said the quickest way for you to get your money back is to send an email to the person that you sent the e-transfer.”

Calling bank, police

She said she followed those instructions and sent an email to the address explaining the situation and asking for the money back. Still not hearing anything back from the person, Manuel called Scotiabank and they told her to give it a few days as it was the weekend.

Manuel was feeling uneasy and contacted the Miramichi Police Service, who started a file for her and told her to update them if she heard back from the bank.

On March 16, she contacted Scotiabank and they opened a claim. She recalled it being a fraud investigation but had to explain it was a mistake, an e-transfer to the wrong person.

“So, they said just keep checking your bank account and the funds should be returned within 10 days… and day 10 came, which was March 24. And I did not have my money back,” she explained.

She said she called them every day, asking to speak to a manager at one point.

“Finally, when I did get through to a manager, because it was day 14, it was March 24, they said that my claim was denied,” she said.

She then contacted the CEO of Scotiabank for further clarification, and now her case has been escalated.

‘Serious financial consequences’

While she has had some correspondence from Scotiabank, she is now at 30 days without her missing funds.

“I’m concerned not only about my own situation, but about how these cases are handled for New Brunswickers more broadly,” she said.

“For many people, losing access to this amount of money for weeks could have serious financial consequences.”

She knows that it was a mistake but hopes that financial institutions do a better job at protecting their clients.

CTV reached out to Scotiabank for a statement but did not hear back in time.

However, both Interac and the Canada Deposit Insurance Corporation (CDIC) got back to CTV and sent statements.

Interac maintained e-transfer is a safe service for digitally transferring money.

“The money is transferred using established and secure banking procedures financial institutions have used for years to settle cheques, bank machine deposits and withdrawals,” the interbank network wrote.

In Manuel’s situation, the autodeposit feature stands out as a complication.

“When the autodeposit feature is enabled, the recipient’s legal name is displayed before the transfer is sent, helping senders confirm they’re sending money to the right person,” Interac said.

“If an error occurs, such as sending funds to the wrong recipient, customers are advised to contact their financial institution immediately.”

Not always a quick fix: Interac

Interac said financial institutions are responsible for investigating reported issues and taking steps under their internal policies and applicable consumer protection rules.

“While reporting an issue right away improves the chances of recovery, not all situations can be resolved quickly, particularly if further investigation is required by the financial institutions involved,” Interac wrote.

The CDIC echoed Interac’s response, stating “While CDIC plays a key role in protecting Canadians’ savings in the event of a member institution failure, it’s important to note that CDIC does not cover losses related to fraud or situations where funds are sent to the wrong account by mistake.”

For Manuel, she wants others to check again before hitting send on an e-transfer.

• READ ALSO: ‘Oh my God, what have I done?’: Ontario senior almost lost $1,600 he sent through e-transfer due to this mistake

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