$70K Vanished: Questrade Case Exposes Investor Vulnerabilities in the Age of Sophisticated Cybercrime
When Toronto-based CPA Megan Tong lost $70,000 to hackers who infiltrated her Questrade investment account, she expected the brokerage’s online security guarantee to cover her losses. Instead, Questrade concluded the incident was likely a phishing attack—outside the scope of its policy—and offered a partial settlement contingent on a confidentiality agreement, which she refused. Despite having two-factor authentication enabled and a strong cybersecurity background, Ms. Tong was unable to recover the bulk of her funds, with both the company and the Ombudsman for Banking Services and Investments declining full reimbursement.
The incident underscores the growing risks facing investors as cybercriminals employ increasingly advanced methods to bypass security controls. It also highlights a gap in Canada’s investor protection framework, where current rules often leave victims bearing the financial loss unless the breach stems from a system failure. As online brokers grapple with balancing fraud prevention against market timing risks, experts suggest that public compensation funds—similar to Quebec’s model—could help protect consumers from catastrophic cyber-enabled theft. The case serves as a cautionary tale for investors to understand the limits of brokerage guarantees and the evolving tactics of financial fraudsters.
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