Summary: Sophisticated GIC Scam Costs Senior $750,000

An 82-year-old man from Phillie lost $750,000 in a sophisticated investment scam involving a fake website. Walter Yam was searching Google for better GIC rates and clicked on a site that convincingly mimicked the legitimate "PC Financial" brand. After calling the number listed, he was offered a 6.5% rate and received official-looking documents. He then authorized his bank, CIBC, to transfer his savings.

The website was entirely fraudulent, and the money was sent to an account unaffiliated with PC Financial. The victim argues his bank should have flagged the transfer to an unverified account. While CIBC stated its staff did ask questions, it processes transactions as authorized by the client.

The case highlights how scammers now create near-perfect replicas of real financial sites. Experts suggest banks have a responsibility to verify recipient account legitimacy. The victim can file a complaint with the banking ombudsman. PC Financial has issued warnings, clarifying it does not sell GICs directly over the phone or email.

Scammers are creating lookalike websites that will pop up in a Google search, hoping you'll hand over your personal information. Pat Foran has our story on this consumer alert.

Pat Foran: Thanks, Nathan and Michelle. A senior was looking to invest in GICs and did a Google search. He clicked on a website that looked like the real thing, but it was a scam site, and he ended up losing $750,000.

Walter Yam: You thought you were on the real PC Financial website?
Pat Foran: Of course I did.

Eighty-two-year-old Walter Yam of Phillie says last fall he had $750,000 in GICs with CIBC. He was searching for a better interest rate and typed "best GIC rates" into the Google search engine. He clicked on a website that appeared to be PC Financial's and called their phone number.

Walter Yam: I said I can come up with $750,000. He said, "Oh, we'll give you 6.5% on a GIC."

Yam received documents with PC Financial letterhead and went to his bank and asked them to transfer the money. But the website was a fake, and he was scammed out of $750,000.

Walter Yam: They sent me a graph showing that in one year I was going to come up with $798,000. I've got zero. Nothing.

Yam says his bank should have known it was a scam, as the money was transferred to a bank account not associated with PC Financial.

Walter Yam: The bank should confirm the... the receivers... that they're legitimate.

PC Financial has a warning on its website about the GIC scam and told CTV News that PC Financial does not promote or sell GICs in person, over the phone, or through email. CIBC called it a very unfortunate situation and said, "Our team is trained to ask questions when a client is performing a large transaction, which we did in this case. If a client authorizes a transaction, it would be processed as per their request."

These scams are becoming that much more sophisticated. Cybersecurity experts say criminals are able to create websites and documents that are almost indistinguishable from the real thing.

Expert: I think there is a responsibility on financial institutions to make sure that the money is being transferred to a legitimate account.

Yam says losing so much money has been disastrous for his finances.

Walter Yam: $750,000... you know how long I'd have to work to make that money?

And Yam can still file a complaint with the Ombudsman for Banking Services and Investments. Anyone who has a problem with the bank and is not satisfied with the outcome can use the ombudsman to review their case. On your side, I'm Pat Foran.

Internet Scams: 82 Year-Old Loses $750,00 In Banking Scam

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Let's do English ESL general vocabulary practice. Summary: Sophisticated GIC Scam Costs Senior $750,000

An 82-year-old man from Phillie lost $750,000 in a soph…