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Toronto-Dominion Bank said it paused a loan program it delivered in partnership with Canada Post after it identified “signs of irregular activities” by “bad actors”.
A TD Bank spokeswoman said the bank said it halted the MyMoney program to investigate what triggered the alert. News of the indefinite pause came weeks after the bank and Crown corporation had announced plans to expand the program nationwide.
“Our processing was impacted when our security protocols identified early warning signs of irregular activities. And while no TD customer information was compromised, we did elect to pause the program to investigate,” Ashleigh Murphy, senior manager of corporate and public affairs at TD Bank, said in an email to BNN Bloomberg.
“It is disappointing that bad actors tried to take advantage of a new product meant to help Canadians, but we are pleased that our security monitoring worked quickly and hope to reopen applications as soon as we feel it is appropriate.”
TD Bank said all new and in-progress loan applications are currently paused, but existing customers can still access their loans.
Murphy said the incident was not a cyber attack but did not elaborate further about what happened.
TD Bank told BNN Bloomberg last week that unresolved “processing issues” with the program had prompted the pause.
The MyMoney loan program, first launched in a handful of provinces in 2021, offered variable or fixed loans ranging from $1,000 to $30,000 with one- to seven-year repayment terms.
A national expansion was announced in October.
The unsecured-term loans were based on credit scores and did not need collateral security.
Canada Post had promoted the program as one aimed at offering financial services to Canadians in rural, remote and Indigenous communities and meeting the needs of Canadians who are new to credit.