Earlier this month, a Toronto-area business narrowly escaped losing over $615,000 to a spear phishing scam, thanks to swift intervention by law enforcement. Ontario Provincial Police (OPP) reported that a wire transfer of $615,820 from a Mississauga company to a U.S. bank was intercepted and frozen before fraudsters could abscond with the funds.
The incident unfolded after the Canadian Anti-Fraud Centre (CAFC) received a complaint regarding a spear phishing fraud, wherein business emails were compromised. Upon receiving the report, OPP promptly collaborated with the United States Secret Service, which alerted the U.S. financial institution involved.
OPP emphasized the significance of timely reporting to the CAFC and the rapid response from all involved parties, noting that the business stands a good chance of recovering the funds.
Spear phishing scams involve fraudsters sending targeted messages to business or individual email accounts, typically within the accounts payable department. By impersonating trusted sources, such as suppliers or contractors, these scammers request urgent payments to alternate bank accounts for ostensibly due invoices. They may also deploy malware through email attachments, allowing them to intercept crucial information and launch convincing attacks.
To safeguard against spear phishing and similar cyber threats, individuals and businesses are advised to undergo comprehensive cyber and fraud training, exercise caution when opening unsolicited emails or clicking on suspicious links, verify email addresses and links, restrict the sharing of sensitive information, implement detailed payment procedures, regularly update security software, and establish protocols for identifying, managing, and reporting suspected fraud.
In the event of falling victim to fraud, individuals are encouraged to report the crime to their local police service and the CAFC, even if no financial loss occurred.
