If you run a business in Canada, there’s a good chance you rely on e-transfers, as they’re quick, familiar, and easy for both you and your customers.
But in the last few years, e-transfer scams have dramatically increased, and Canadian businesses are being hit harder than ever.
Many of these scams look completely legitimate on the surface. The messages mimic real Interac notifications, the emails look nearly identical to what your bank usually sends, and the payment instructions often come from addresses you recognize.
That being said, for business owners who are juggling clients, staff, and day-to-day operations, the sophistication of these scams makes them incredibly dangerous.
And unlike credit card payments, once an e-transfer is intercepted or redirected, the money is usually gone.
Banks rarely reimburse businesses for e-transfer scams because the transfer is considered to have been authorized by the sender.
In any case, it’s becoming increasingly important for business owners to understand what this new wave of e-transfer fraud entails, and how to avoid getting scammed like this.
So, let’s break down what’s been happening, how e-transfer scams work, and the steps you can take to protect yourself and your business.
Why E-Transfer Scams Are Increasing in Canada
E-transfer scams are rising rapidly across the country, and several factors have contributed to this.
As digital payments become the norm, fraudsters are focusing their efforts on the tools Canadians trust most.
E-transfers are fast, widely accepted, and simple to use, but those same benefits make them appealing targets for criminals.
Businesses – especially those that are handling multiple payments daily – are increasingly vulnerable because they tend to rely on email for communication, and email is one of the easiest entry points for scammers.
And this uptick isn’t random. Fraudsters today have access to more sophisticated phishing tools, compromised email lists, and automated systems than ever before.
Combine this with the fact that e-transfers are immediate and irreversible, and businesses become some of the most ideal targets.
The Most Common E-Transfer Scams Targeting Canadian Businesses
While these scams vary in terms of how they operate, they all exploit the same vulnerabilities, which include email communication, trust, and the finality of e-transfer payments.
Modern fraud attempts are no longer obvious, poorly written messages. Instead, they’re carefully crafted, data-driven, and often timed to match your actual business activities.
And because many business owners use e-transfers frequently, it’s easy for a fraudulent request to slip into a busy workflow unnoticed.
In any case, the following scams are the most common ones affecting Canadian businesses today – and the ones you’re most likely to encounter.
Spoofed or Fake Interac Notifications
Imagine this: You receive what looks like a real Interac email or text.
The branding is correct, and the message sounds legitimate. But when you click the link to deposit the payment, you’re taken to a fake login page designed to steal your banking credentials.
The moment you enter your email and password, the fraudster logs into your real account and starts sending money out.
The Overpayment Refund Scam
Here’s another scenario: A customer sends you an e-transfer for too much money, and they explain it was a mistake and ask for a refund.
But the original e-transfer never clears. It’s cancelled, fraudulent, or spoofed. And after you’ve sent the refund, that money is gone for good.
Business Email Compromise
This is one of the most financially damaging scams in Canada.
A scammer gains access to your business email, or the email of a supplier, customer, or employee, and then they wait, watch, and strike at the perfect moment.
Some common examples of this include:
- A fake invoice sent from a hacked vendor email
- A payment instruction change sent from an employee’s compromised account
- A “follow-up” message on a real conversation, but with the fraudster redirecting the payment
Because these emails come from legitimate accounts, they’re extremely believable, and that’s what makes them so dangerous.
E-Transfer Deposit Interception
In this scam, the sender’s email is compromised.
A real e-transfer is sent to you, but before you can accept it, the fraudster intercepts the deposit notification and changes the deposit email or phone number.
Then the money is accepted by the scammer long before you ever see it.
Fake Security Alerts or Verification Requests
If you’re targeted by this kind of scam, you’ll receive a message claiming:
- A recent payment failed
- Your e-transfer is pending
- You must verify your account
- Your Interac profile needs updating
But when you click on a link, it leads to a phishing page that looks identical to your bank’s website.
And once your credentials are entered, the scammer has full access.
Warning Signs That an E-Transfer Might Be a Scam
Even though fraudsters are getting better at making scams look legitimate, there are still some signs that can indicate something isn’t right.
However, these red flags tend to be very subtle – sometimes only noticeable based on a tone shift, a slightly unusual request, or a small formatting issue.
But when you know what to watch for, spotting an e-transfer scam becomes much easier.
Teaching your team to watch out for these red flags can prevent most losses:
- There’s pressure to act quickly
- Payment instructions arrive at strange hours
- You’re asked to click a link to deposit a payment
- A customer suddenly uses a new email address for payments
- The message asks you to verify, reactivate, or reclaim a transfer
- The sender requests a refund before the transfer has fully cleared
- The email design looks slightly off compared to normal Interac messages
All things considered, if you’re ever in doubt, make sure to call the sender to confirm the details, rather than emailing them.
At any rate, many businesses miss these clues simply because they’re busy or rushed.
But by building awareness and teaching your team what suspicious behaviour looks like, you can create a strong first line of defence against fraudulent e-transfers.
The Hidden Costs of E-Transfer Fraud
The financial loss of e-transfer scams is painful, but it’s only part of the problem.
When a business gets hit with e-transfer fraud, the ripple effects often extend far beyond the original amount that was stolen.
For instance, business owners typically spend hours untangling the situation by contacting the bank, alerting customers, updating passwords, and reviewing accounts.
And during that time, normal operations can slow down or even stall completely.
There’s also the emotional toll, as fraud incidents create stress for both owners and staff, especially when the scam appears to have come from a trusted contact.
For businesses that depend on strong relationships with customers or suppliers, a compromised transaction can also damage trust.
And with banks rarely reimbursing businesses for e-transfer fraud, the financial loss sits squarely on the owner’s shoulders.
Why Relying on E-Transfers Puts Your Business at Risk
E-transfers offer convenience, but they come with limitations that can create serious risks for your business.
Unlike professional payment systems, e-transfers don’t provide built-in dispute resolution, fraud monitoring, or multi-layered authentication. They’re designed primarily for personal use, not for the complex needs of businesses processing high-value or frequent payments.
And as your business grows, these limitations will become much more noticeable.
Multiple staff members may accept payments, invoices get larger, and tracking payments manually becomes time-consuming.
Over time, the risk increases – not because you’re doing something wrong, but because e-transfers weren’t built for the realities of commercial transactions.
Practical Steps You Can Take Today to Stay Safe
Fortunately, protecting your business doesn’t necessarily require major investment or complicated security systems.
Many of the best protective measures are simple, practical actions that can be implemented immediately, like:
- Enabling multi-factor authentication
- Training staff to recognize suspicious emails
- Establishing internal procedures for verifying payments
And by combining these small steps with the security of a reliable payment processor, you can create a layered defence that significantly reduces your risk of falling victim to e-transfer scams.
How a Reliable Payment Processor Helps Protect Your Business
A secure payment processor provides safeguards that e-transfers simply don’t offer.
These systems protect transactions at multiple stages, not only preventing fraud, but also helping identify unusual patterns or suspicious inquiries before they lead to financial loss.
For businesses, this means greater confidence and less time spent managing or verifying payments.
Better yet, a trusted payment processor can help you reduce your reliance on email communication for payments, which is where many of these scams begin.
Tools like payment terminals, mobile readers, virtual terminals, and secure payment links make it much harder for fraudsters to interfere.
And when you have a dedicated support team to help verify concerns in real time, you’ll gain peace of mind that e-transfers alone can’t provide.
When to Switch From E-Transfers to Safer Payment Options
Every growing business eventually reaches a point where e-transfers are no longer the best option.
Having said that, if you’re processing payments more frequently, handling larger invoices, or involving multiple staff members in payment acceptance, you’ve probably outgrown e-transfers, whether you realize it or not.
Many business owners don’t make the switch until after a fraud scare.
But identifying the signs early gives you the opportunity to transition to safer, more efficient systems before an issue occurs.
If any of this sounds familiar, then it may be time to rethink how you accept payments.
The Bottom Line
E-transfer scams are rising quickly in Canada, and businesses are increasingly targeted because fraudsters know how busy and trusting owners often are.
And while e-transfers are convenient, they come with risks that grow as your business grows.
But if you work with a secure payment processor, you don’t have to navigate those risks alone.
Combined with a few simple internal safety steps, you can safeguard your business from the newest wave of e-transfer scams, and whatever might crop up in the future.
Need help reviewing your current payment setup or exploring safer ways to accept payments?
Contact us today to keep your business protected with clear guidance, secure solutions, and 24/7 Canadian support.
