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

Man missing in the South Okanagan located

Victor Genero has been located according to RCMP. He was last seen in Penticton on Feb. 24.

Vees have a short-handed romp over visiting West Kelowna Warriors

The Penticton Vees scored three short-handed goals to take a 1-0 series lead over West Kelowna

New York performer can’t wait to bring Chicago to Penticton

The timeless, award-winning musical comes to the South Okanagan Events Centre March 28.

Penticton RCMP seek assistance locating missing man

Victor Genero has been missing since Feb. 24; he was last seen in Penticton.

Ministry grants SD67 extension to balance books, submit amended budget

The board of trustees voted Monday to acquire outside help to deal with budget concerns

‘Shocking but not suprising’: Sexual assaults at B.C. tree planting camps unearthed by survey

Contractors’ association is working with trainers to create respectful culture

Lawyer gets house arrest for possessing child porn

Maple Ridge resident gets nine-month term

Okanagan students earn innovation award at B.C. robotics challenge

Kalamalka Secondary students awarded in Victoria

Notorious B.C. fugitive to be extradited from California on murder charge

Brandon Nathan Teixeira submitted to extradition during court proceedings Thursday in Sacramento

Mitchell’s Musings: Karma is king

One good turn leads to another and another…

Canada prepared to monitor for community spread of COVID-19: Tam

The U.S. confirmed one case of the new coronavirus, or COVID-19, in California Thursday

Most Read