What Obligations Does A Bank Have To Warn A Customer About Potential Fraud?

Understanding the significance of Zheng v. Bank of China (Canada) Vancouver Richmond Branch 2023 BCCA 43 in the current climate of increased financial scams.

The facts in the British Columbia Court of Appeal case of Zheng v. Bank of China (Canada) Vancouver Richmond Branch 2023 BCCA 43 may not sound unique in a world where scams are becoming increasingly common and sophisticated.

The plaintiff, Ms. Zheng, was convinced by a fraudulent person to transfer $69,000 from her account with the respondent the Bank of China (Canada) to an account in another person's name at a Hong Kong branch of the Bank. She later learned that the person who contacted her was a fraud, and that the local media had reported this type of fraud occurring even before the transaction she was involved in. She subsequently sued the Bank of China (Canada), alleging they knew of this type of prevailing fraud at the time of the transaction.