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.

Just Posted

Sylvan Lake’s Flags of Remembrance looks to fill all 128 spots

Allan Cameron says there are still a handful of honour plaques available for the 2019 event

‘Best of Stettler Readers’ Choice Awards’ voting deadline is fast approaching

Locals reflect on what makes Stettler such an outstanding community

Tri-Continental headed to Red Deer in September

Central Alberta native Bill Bourne enjoying the sonic journey

MLA Nate Horner officially opens Stettler office

An open house, including a barbecue, was held Sept. 10th

First Nations given max compensation for Ottawa’s child-welfare discrimination

2016 ruling said feds didn’t give same funding for on-reserve kids as was given to off-reserve kids

Federal party leaders address gun violence after weekend shooting near Toronto

One teen was killed and five people injured in the shooting

Conservatives promise tax cut that they say will address Liberal increases

Scheer says the cut would apply to the lowest income bracket

Fewer trees, higher costs blamed for devastating downturn in B.C. forestry

Some say the high cost of logs is the major cause of the industry’s decline in B.C.

Federal food safety watchdog says batch of baby formula recalled

The agency says it’s conducting a food safety investigation

Red Deer Rebels drop preseason tilt to Tigers 5-3

Rebels fail to score after three first period goals

Canada Post has unfair advantage in distributing flyers: news group

Crown corporation argues newspapers, private operators deliver majority of flyers in Canada

Western Canadian Baseball team, stadium coming to Sylvan Lake

The Town announced they are finalizing an agreement to have a WCBL team in the future sports park

Most Read