Beware of fake supplier scam
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How it works
This scam mainly targets businesses. After hijacking the email address of one of a business's main suppliers, the fraudster requests that payments to the supplier be made to a new account. The legitimate supplier never receives the payments.
Risks
- After hijacking the email address of a business's supplier, the fraudster has all the information they need to put a scam in place.
- The targeted business only realizes that the payment was made to a fake supplier later on.
Prevention tips
- Train your staff
Staff members in charge of a business's finances must be aware of scams and know how to deal with them.
- Bank securely with your suppliers and clients
Keep an eye out for banking information change requests and overpayment requests from suppliers.
- Confirm all banking information change requests by calling your suppliers at the numbers you have on file.
- Establish a thorough payment procedure
A written payment procedure should be kept on file and only be accessible to authorized employees.
- Identify the staff members who are authorized to make payments.
What to remember
- Establish a payment request confirmation procedure.
- Determine the maximum transaction amount for authorized employees.
- Any transaction that exceeds the limit you have set must be approved by a manager.
- Perform regular checks to ensure that all authorized staff understands and follows the procedure.
- When in doubt, end the conversation and contact the supplier who made the request.
What to do if you have been scammed
- Call your caisse or Desjardins Business centre.
- Call the police.
- Report the scam to the Canadian Anti-Fraud Centre - External link. This link will open in a new window..