How to avoid e-Transfer scams when using Interac: A Closer look (2023)

Interac e-Transfer is a simple method to make payments online. But, as with any online transaction, you might be worried about getting scammed.

In this guide, we talk about the different types of Interac e-Transfer scams - and how to avoid them. If you believe that you have been scammed, you can jump straight to the section titled “What to do if you’ve been scammed” towards the end of the article.

If you’re looking for an Interac e-Transfer alternative, Wise can help. Safely transfer your money in Canada or further afield, including plenty of advantages for individuals and businesses.

Table of Contents

Is e-transfer safe? How to protect yourself from e-Transfer scams If you’re sending money online If you’re receiving money online Types of e-transfer scams E-transfer scams on digital marketplaces Facebook Marketplace and Kijiji When buying or selling pets Fake e-transfer emails and text messages E-transfer scams targeted at job-seekers and expats Job Interac e-Transfer scams Expat e-transfer scams Interac scams using fraudulent cheques E-transfer scams from “government officials” What to do if you’ve been scammed

Is e-transfer safe?

Before we discuss the different kinds of e-transfer scams - and, more importantly, how to avoid them - we need to understand how Interac’s security features work.

First off, it’s important to note that no money actually travels by email or text when you send an e-transfer. This is just how you receive a notification of funds.

On top of this, Interac e-Transfers are protected by the same security measures used for other transactions, including:

• encryption technology
• secure login process
• passwords and user IDs
• security questions and answers¹

This last step means that not just anyone can access your money - minimizing the chance of someone else intercepting your e-transfer.

However, this option is disabled if you have Autodeposit set up with your bank.

How to protect yourself from e-Transfer scams

It’s important to stay vigilant, as an Interac e-Transfer can’t be reversed once the recipient has deposited funds into their account. While scammers can get creative, we can always do our part to ensure that we send our money and information to the right people. Here are a few tips we can always use to stay safe online:

If you’re sending money online

• A unique security question for each recipient - This should be a question only the recipient and you can answer.
• Passwords must never be shared or used as answers to security questions.
• If the answer to your security question must be shared, it is best done in person or via direct contact with the recipient.
• Change your passwords and security questions regularly.
• Never create security questions containing passwords or the answer.
• Do your research on the business if you’re paying via interac.
• If your potential employers ask for money or interac e-transfer details, proceed with caution and report to the relevant authorities if you find any suspicious activity.

If you’re receiving money online

• Ask for answers to security questions only via secure methods, as discussed above.
• Save any transactional information you receive, in the form of emails or receipts.
• Do not respond to job offers arouse even the slightest of suspicions.
• Do not use generic passwords or the same password for multiple platforms or accounts.
• Ask the sender to create a security question only you would know the answer to.

We must also report any suspicious activity to the relevant authorities, as we shall discuss later in this article.

Types of e-transfer scams

Knowledge is power and knowing the most common types of e-transfer scams can help us send money in security. We’ll detail a few of them, to help you stay safe online.

E-transfer scams on digital marketplaces

Facebook Marketplace and Kijiji

Facebook and Kjiji are common options for Canadian users to buy and sell products online, but these sites also attract Interac e-Transfer frauds.

These scams usually involve:

• Paying for an item and never receiving it
• Sending an item but never receiving funds for it

In the first case, once the scammer has accepted your e-transfer, you can’t get it back. In the second case, you lose the item you sent.

📰According to CBC news, in 2022, Christine Mason fell victim to a Kijiji e-transfer scam. The scammer visited Mason in person to view the tools she wanted to sell, and she watched him set up an e-transfer for 480 USD. Mason then set up Autodeposit so that she could automatically receive the money - but it never arrived. As an e-transfer can be cancelled before the money leaves an account, the scammer cancelled the transaction and got the tools without paying for them.²

There are a few ways to spot a fake e-transfer on Kijiji or Facebook Marketplace before you lose any money.

If you’re selling an item online, make sure to receive your money before sending it, and don’t pay for a product without confirmation that it’s on its way to you. Many people post examples of fraudulent transactions online, such as fake e-transfer screenshots of any scam communication.

It’s also possible to look at someone’s profile to see if their email is confirmed and whether they’ve made sales in the past.

When buying or selling pets

As pets are often expensive purchases, some scammers create fake pet selling or breeding websites.

The scammer will ask you for a big deposit via e-transfer before delivering the animal, but your new pet will never arrive. As with other Interac scams, once the scammer accepts your e-transfer, your money is deposited into their account - and it’s not possible to get it back.

To avoid this type of scam, make sure to check for a business license, as this is a verified sign that the seller is legit. Business licenses in Canada can be found on the government website corresponding to the region or state they are located in.

Fake e-transfer emails and text messages

If you’re receiving money by e-transfer, you might wonder how you can tell a fake e-transfer from a real one. A fake Interac e-Transfer text message or email notification could put you at risk of phishing. This involves receiving an email or text with a fraudulent link. The message will encourage you to enter personal information, to steal your credit card numbers, passwords, bank details, and more.

It’s not always possible, but there are some key things to look out for.

Fake Interac e-Transfer email notifications often include the following characteristics:

• Attachments
• It says your money is in escrow
• It’s unexpected or it comes from a stranger
• It uses a generic greeting, like “Dear Customer”
• It comes from the Canada Revenue Agency (CRA)³

Avoid phishing by only accepting e-transfers that you’re expecting. If the e-transfer comes from an email address you recognize, contact the person via a different channel to verify if it’s actually from them before you accept.

⚠️Some scammers even use fake e-transfer generators to send e-transfer text scams out to recipients - so it's important to be attentive. Send suspected fraudulent messages to phishing@interac.ca.¹

E-transfer scams targeted at job-seekers and expats

Job Interac e-Transfer scams

If you’re the victim of a job e-transfer scam, you’ll receive a message from a potential “employer” about a job. You’ll be asked to accept or send e-transfers - the funds for which usually come from another victim’s account.

As well as any stolen e-transfers, your bank may also flag your account as fraudulent, meaning you can’t use it until the situation is sorted.

These notifications often come from job sites such as LinkedIn or via email.

Avoid this type of e-transfer scam by doing your research. Make sure to look for legitimate information about your “employer” online, including an address and business license. If you can’t verify that this is a real company, it could be a scam.

Expat e-transfer scams

Expat e-transfer scams aim to manipulate your emotions, encouraging you to send money to help someone out. For example, the scammer might claim to be an expat, saying they need help getting money over to their family.

Make sure to verify the story if this notification comes from someone you know. More often than not, any unknown requests for urgent money are fraudulent.

Interac scams using fraudulent cheques

A scammer could steal from you by depositing a fraudulent cheque. Before the cheque can be deposited, the funds are put on hold, and a scammer can send an e-transfer to their own account.

The cheque will bounce - and this might be the first time you notice something’s not right. Also known as cheque-kiting, this scheme relies on gaining access to deposited funds in one account before they can be collected from another account.

Unfortunately, it can be difficult to spot this type of Interac scam. Your bank card might stop working or you might notice that a random e-transfer has left your account.

E-transfer scams from “government officials”

Some scammers may contact you pretending to be a government official. If you receive an e-transfer notification from a “government official” - or a message that claims they need help transferring money - chances are, it’s a scam. You may be told you’ll be rewarded for completing an e-transfer for them, or you may be sent a fake e-transfer to accept.

📰CBC News reported that in 2018, Vivien Zheng was a victim of one such scam, receiving a call from someone claiming to be from the Chinese Consulate in Vancouver. The caller told her she was a suspect in an international money-laundering scam, but this was an elaborate wire transfer fraud, and Zheng lost 340,000 USD.⁵

Canada Revenue Agency e-transfer scams are common. It’s important to remember that the CRA will never send you money by Interac - and they’ll never request money from you, too.

The Financial and Consumer Services Commission (FCSC) shares relevant information about any current scams, including examples of fake e-transfer transactions. This can help you verify if an e-transfer is legit or not.³

What to do if you’ve been scammed

If you think you’ve been the victim of Interac e-Transfer fraud, follow these steps immediately.

Step 1. Contact your bank or credit union. This will open an investigation into your accounts and your bank may be able to cancel any fraudulent transactions.

Step 2. Contact the Police. Cybercrime may be able to investigate your case. If you’ve been a victim of a CRA scam, you can also contact the Canadian Anti-Fraud Centre for advice.³

Step 3. Change all your passwords. This includes your bank account login details and email password.

Step 4. Check if you can claim back any money from your bank. In some cases, you might receive compensation, so it’s worth checking.

Send your money in safety with Interac e-transfers on Wise

Wise's dedicated fraud team works round the clock to keep all of your accounts protected. Every transaction features two-factor authentication - and no one can access your money but you!

With real-time notifications and regular vulnerability scans for security, Wise gives you complete peace of mind to spend your money in confidence. To find out more about safe global money transfers, check out Wise.

It might assure you to know that Wise Payments Canada Inc is registered as a money service business with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and is licensed in Québec by the Autorité des marchés financiers (AMF).⁴

Send money safely with Wise

While we’ve tried to provide as many detailed examples as possible, this article doesn’t include all the ways you can be scammed via Interac e-Transfer. Remember to always be vigilant when sending and receiving money online.

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Sources

1. Interac.ca

2. CBC.ca

3. FCNB

4. Wise Security - See page footer

5. CBC News

Sources checked on: 04 April, 2023