A U.S. based company was being ripped off for more than $1 million by online thieves as fraud cops from both sides of the border stepped in and stopped the transaction.
The online theft of $750,000 U.S. was averted at the last minute due to the work of the Canadian Anti Fraud Centre (CAFC) and the U.S. Secret Service Ottawa Field Office, police said.
Police said the scam was thrashed after a Canadian company reported a similar scam to the CAFC last June. The information was passed on to Canadian and U.S. police.
A bank investigator soon discovered that a U.S. company, which was not identified, was transferring almost $750,000 U.S. to a suspected fraudulent account.
“The bank investigator put a hold on the transfer, contacted the company and began procedures to reverse the funds,” according to the CAFC. “A company employee expressed their thanks and said the interception had potentially saved jobs.”
Potential jobs in Canada were saved since the company could have shut down or forced to lay off employees with the huge loss.
Police said the scam is called a Business Email Compromise (BEC), which is among the most financially damaging online fraud.
“Without the initial report from the Canadian company, there could have been devastating losses to both the company and to people’s lives,” said Sgt. Guy Paul Larocque. “Unlike many traditional crimes, scams and fraud span over a number of jurisdictional borders.”
In a BEC scam, a fraudster will send an email that is spoofed to look like it’s coming from a known and trusted source. BEC messages include: a business receives a duplicate invoice with updated payment details supposedly from an existing supplier or contractor; an accountant or financial planner receives a large withdrawal request that looks like it’s coming from their client’s email; Payroll receives an email claiming to be from an employee looking to update their bank account information.
It also includes an email that seems to be from a trusted source who asks you to download an attachment, but the attachment is malware that infiltrates the entire computer network. Also any email that seems to come from a trusted source which asks you to buy gift cards.
If you have been a victim of scam, fraud or cybercrime, please contact your local police. We also encourage you to report an instance, whether you are a victim or not, with the CAFC via the Online Reporting System or by phone at 1-888-495-8501. By filing a report, you can provide invaluable information that could protect others.