How to Avoid being the Victim of Scams Involving e-Transfers

People use Interac e-Transfers for just about anything nowadays! After all, Interac e-Transfers are a fast and convenient way to send and receive money within Canada. Whether it’s to pay back your friend for lunch, or selling your lawnmower, e-Transfers are convenient and popular for their simplicity, requiring just a few clicks to complete. However, while they offer convenience and speed, they don’t come without any risk.

There are several scams that exploit the use of the e-Transfer system. The fact that individuals can send and receive funds through online or mobile banking services, and the sender doesn't need the recipient’s bank details (just the recipient's email address or mobile phone number) means it’s very easy to trick people who aren’t aware of the ever-changing ways to get scammed online.

One such way is through Buy and Sell scams. Scammers create fake ads on buy and sell platforms, like Kijiji or Facebook Marketplace, offering goods or services for sale. Victims send an e-Transfer to purchase the item or service. Once the scammer receives the money, they disappear, leaving the victim without the item or service and also out their money.

Scammers will often use tactics to convince you to send a deposit before seeing the item in person. For example, they will require a deposit to hold the item or create a sense of urgency that the funds need to be sent right away. We recommend not to send e-transfers to individuals you don’t know, unless you already have the item or service you are purchasing in your possession. Remember! Always meet in person in a safe, public place for exchanges, preferably not alone. By being aware of the common tactics used by fraudsters and taking steps to secure your transactions, you can enjoy the benefits of e-Transfers without falling victim to scams.

There are other ways you can protect yourself from e-Transfer scams:

• Verify Recipients: Always double-check who you're sending money to. Avoid sending e-Transfers to people you don't know or trust.
  • If you receive an invoice through email to pay for a service you are expecting to pay for, call the known company to confirm e-Transfer details. Too often emails become compromised, and scammers will alter the e-Transfer recipient details to redirect the funds to the fraudster.
    
    
• Use Auto-Deposit: Ensure you have auto-deposit registered under your e-Transfer profile. By doing so, this allows incoming e-Transfers to be deposited directly into your Kindred account without the need to answer a security question. When sending funds to a recipient with auto-deposit, ensure that the name shown on the auto-deposit confirmation screen matches the name of the individual you are sending funds to. If it does not, it’s best to confirm the legitimacy of the individual.
  
  
• Use Strong Security Questions: Make sure security questions you create are difficult to guess. Avoid using information that is easily accessible online, such as birthdays, pet names, family member names. Ensure that you don’t include the answer in your e-Transfer message. Answers ideally should be something the receiver should know without having to provide the answer. However, if the answer is required to be provided, ensure a different verifiable form of communication is used to share the answer.

• Be cautious of urgent requests. Scammers often create a sense of urgency to pressure victims into acting quickly.
  
  
• Monitor your accounts regularly. Report unauthorized transactions immediately.

Remember, stay safe, stay vigilant and share these tips with others!