City of Saskatoon hit by internet fraud that sends $1M to wrong bank account

The city contacted police after the fraud was discovered on Monday

The City of Saskatoon says it has lost $1 million after it was targeted in an online scam. Saskatoon mayor Charlie Clark speaks with media at the Legislative Building in Regina, Tuesday, April 10, 2018. THE CANADIAN PRESS/Mark Taylor

The City of Saskatoon says it has lost $1 million in an online scam.

City manager Jeff Jorgenson says a fraudster electronically impersonated the chief financial officer of a construction company that has a contract with the city.

He says the culprit asked to have a payment sent to a new bank account and the city complied.

The city contacted police after the fraud was discovered on Monday.

It has hired experts to try to recover the money.

ALSO READ: ‘Sextortion’ emails on the rise, targeting Canadians who may or may not visit porn sites

Jorgenson says the city is reviewing its financial controls to make sure it is secure from future attacks.

“The attacks are always there. They’re always changing,” he said at a news conference Thursday.

“The fraudsters are becoming more and more sophisticated, and our controls and systems have to become more and more sophisticated as well.”

Mayor Charlie Clark said the city decided to go public with the fraud to be up front with taxpayers and warn others so it doesn’t happen to them.

Two years ago, MacEwan University in Edmonton reported that it had been defrauded of $11.8 million when three staff members were fooled into changing the electronic banking information of a construction company.

The university said it was able recover $10.9 million because of a quick response by the school, lawyers, banks and the police.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Vandals cause damage estimated at $3,000

“It was just malicious, stupid, drunken behaviour” - Thwaites

Confusion surrounds terms of RCMP withdrawal from pipeline construction area

B.C. Deputy Commissioner clarifies terms of agreement following minister’s statements

Stop checks, searches of Wet’suwet’en pipeline opposers unlawful: Watchdog

Wet’suwet’en hereditary chiefs, the B.C. Civil Liberties Association, Union of B.C. Indian Chiefs file complaint

Wet’suwet’en pipeline supporters speak up

“Protesters get one side of the story and they stand up with their fists in the air.”

Bachrach rejects calls for police action against demonstrators

Skeena-Bulkley Valley MP says only way out of crisis is “true nation-to-nation” talks

VIDEO: B.C. senior recalls ‘crazy’ wartime decision to grab bear cub from den

Henry Martens – now 96 – says he was lucky to be alive after youthful decision to enter a bear’s den

Cheapest in B.C.: Penticton gas prices dip below $1 per litre

Two stores in Penticton have gas below a dollar.

Loans or gifts? Judge rules woman must pay B.C. man back $7K

B.C. judge rules that woman must pay back more than $7,000 in advanced funds to man

VIDEO: Outpouring of worldwide support for bullied Australian boy

Australian actor Hugh Jackman said ‘you are stronger than you know, mate’

‘A horror show:’ Ex-employee shares experience at problematic Chilliwack seniors’ home

Workers are paid below industry standard at all Retirement Concepts facilities

Forest industry protests northern B.C. caribou protection deal

B.C. Mining Association supports federal-Indigenous plan

Youth-led report calls on B.C. government to create plan to end youth homelessness

There are no dedicated programs for youth homelessness at federal, provincial level, report says

Trudeau: Time for blockades to end and Indigenous leaders to work with government

Prime minister says situation in Coastal GasLink pipeline dispute is ‘unacceptable and untenable’

Petition slams Victoria councillor who chastised police after Wetsuweten protest

Ben Isitt calls effort to get him suspended is not a ‘reliable barometer of public opinion’

Most Read