Why Liability And Reputational Risk Is Changing

Technology is making it easier for consumers and businesses to move money, but it can also create new liability risks, fraud experts warned Tuesday.

“Financial institutions really have to think about their position on liability,” said Jas Anand, senior manager for risk advisory at Deloitte Canada, alluding to a common scam that could cause your commercial client to lose money. In this type of scam, a criminal will send an e-mail to an employee in the finance or accounting department, the Canadian Bankers Association notes on its website. The criminal makes it look as if the e-mail – which instructs a financial worker to wire money to a third party – is coming from a company executive.

“It is very easy to be tricked by that,” Anand said Tuesday during a panel discussion at the Payments Canada Summit, which wraps up Thursday in Toronto.