Fake e-transfer scam targeting residents in Ontario

Post-holiday expenses leave many watching their wallets, but scammers are on the prowl, posing as banks and tricking victims into handing over e-transfer details or authentication codes to access accounts and commit fraud.

According to the Canadian Anti-Fraud Centre, a trusted source for identifying and alerting the public to emerging scams, fraudsters are now posing as financial institutions to lure victims into sending e-transfers to their own accounts under the guise of “protecting” their funds.

Fraudsters also compromise multi-factor authentication by persuading victims to share verification codes sent via text or email. These codes, intended to secure accounts, can be used by scammers to bypass protections and gain full access to the victim’s bank profile.

Adding to the deception, scammers often spoof financial institution phone numbers or provide fake call-back numbers to appear legitimate. Some even have personal information, such as names, addresses or debit card numbers, to build trust.

In extreme cases, scammers will visit victims’ homes, posing as investigators retrieving bank cards for supposed fraud investigations. Victims have also been lured into withdrawing cash under the pretense of helping to catch a “dishonest” bank employee, only to hand the money directly to the fraudsters.

The CAFC says these scams frequently exploit technology and personal information from past breaches. Warning signs include urgent requests for codes, URLs, or personal details, as well as unsolicited calls claiming to be from financial institutions.

To safeguard your finances, the fraud prevention agency suggests these helpful tips:

• Never share e-transfer links or codes.
• Avoiding remote access to your computer.
• Call your bank using the official number on your card rather than the one provided by the caller.
• Enabling auto-deposit for e-transfers.
• Refusing to turn over your bank card or provide it to anyone visiting your home.

“Financial institutions will never ask you to transfer funds to another account for security reasons or pick up your card for investigation,” warns the CAFC.

If you suspect you’ve been targeted by a scam, report it to police and the Canadian Anti-Fraud Centre.
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