Scams Targeting Businesses

Wire Frauds
One type of wire fraud currently targeting businesses is the Business Executive Scam (BES)
which is a type of phishing. The potential victim receives an email that appears to come from
their employer’s human resources or technical support department. Fraudsters create email
addresses that mimic that of the real departments. An email message will be sent to the
accounting department advising that the “executive” is working off-site and has identified an
outstanding payment that needs to be made as soon as possible. The “executive” instructs the
payment to be made and provides a name and a bank account where the funds, generally a
large dollar amount, are to be sent. Losses are typically in the excess of $100,000.00.

Financial Industry wire frauds occur when Canadian financial institutions and investment
brokers receive fraudulent email requests from what they believe to be an existing client.
Unbeknownst to them, the email account of their client has been compromised. A request is
sent by the fraudster to the financial institution/investment broker to have money transferred
from “their” bank account usually to a foreign bank account.
Warning Signs – How to Protect Yourself
• Beware of unsolicited emails from individuals or financial institutions presenting an
urgent situation requiring immediate attention.
• Prior to sending any funds or product, make contact with existing clients in person or by
telephone to confirm that the request is legitimate.
• Watch for spelling and formatting errors and be wary of clicking on any attachments,
they can contain viruses and spyware.

Directory Scams
Businesses receive an invoice for a directory, publication or listing that they did not order or
authorize. Fraudsters will place a call to the business and speak to employee and ask to
confirm details such as the company’s address, telephone number and other particulars. An
invoice is sent to the company and often payment is made by the accounting department not
realizing the company never ordered or agreed to pay for the directory. The fraudster may
tape record the initial conversation and use that against the company to verify the purchase of
the directory.
Warning Signs – How to Protect Yourself
• Educate employees at every level to be wary of unsolicited calls. Post notices and
discuss during staff meetings.
• Compile a list of companies that are typically used by your business, give authority to
only a number of staff to approve purchases and pay bills.
• Fraudsters will use real company names like Yellow Pages to make the invoices seem
authentic. Inspect invoices thoroughly prior to making payment.

The Supplier Swindle
Canadian businesses are losing significant amounts of money to fraudsters who claim to
represent their regular supplier. The scam is targeting businesses that buy supplies from
foreign wholesalers (e.g. China) and usually involves a spoofed e-mail informing the buyers of
a change in payment arrangements. “Email spoofing refers to email that appears to have
originated from one source when it was actually sent from another source.” The e-mail notice
provides new banking details and requests that future payments be made to this “new”
account.
Warning Signs – How to Protect Yourself
• Beware of unsolicited emails from individuals or financial institutions presenting an
urgent situation requiring immediate attention.
• Prior to sending any funds or product, make contact with existing clients in person or by
telephone to confirm that the request is legitimate.
• Watch for spelling and formatting errors and be wary of clicking on any attachments,
they can contain viruses and spyware.
If you think you or someone you know has been a victim of fraud, please contact the Canadian
Anti-Fraud Centre at 1-888-495-8501 or report online at http://www.antifraudcentre.ca