'Bank investigator' fraud spreading in eastern Ontario: What it is and how to avoid it

Canadians falling victim to bank investigator scam Canadians have lost more than $6 million to bank investigator scams in 2024, which has sparked calls for banks to do more to protect clients

Ontario Provincial Police and the Canadian Anti-Fraud Centre are warning people about fraudsters impersonating major Canadian banks.

The "bank investigator" scam involves someone calling and claiming to be from a bank, the police, or an online retailer, asking the target's help with an "ongoing investigation" into a breach of the victim's bank account.

Fraudsters will convince victims to send an Interac e-transfer transaction to their own cellphone number. The suspect will instruct the victim on the steps required to add themselves as a payee and to increase their daily Interac e-transfer limit.

The suspect provides the e-transfer question and answer that the victim must use for the transfer. Once the victim sends the Interac e-transfer transaction to their own cellphone number, suspects will ask the victim for a "code" which is the last portion of the Interac e-transfer URL/link received. If the victim provides the URL, suspects will have the ability to deposit the funds into their own account.

In some cases, the fraudster might request the target provide log-in information for their bank account, including two-factor authentication codes, as part of the "investigation", which then gives the scammer access to the victim's funds.

More variations of this scam can be found on the Canadian Anti-Fraud Centre's website, including fraudsters even claiming to be the Canadian Anti-Fraud Centre itself.

Ways to protect yourself

The OPP say to watch out for red flags when receiving phone calls from anyone demanding payment or access to financial information, even if it seems legitimate.

Oftentimes, the fraudster will spoof the phone number of the institution being impersonated, making the call appear legitimate. The scammer may also have access to some of the target's personal information like name, date of birth, address, or debit card number. Fraudsters will often provide the first 4 numbers of a debit or credit card to try and prove legitimacy. Remember that most debit and credit card numbers with specific financial institutions begin with the same four numbers.

Here are some more ways to protect yourself from falling victim to fraud:

The Canadian Anti-Fraud Centre says calls from "bank investigator" fraudsters tend to happen early in the morning when a victim is still sleeping or not alert.

If you were a victim of this or any other type of scam, even if you didn't lose any money, you can report it to the Canadian Anti-Fraud Centre online. It is also recommended you report it to your local police.