The fraud consists of scammers sending an e-mail impersonating an executive of a company requesting a wire transfer of funds to a third party. The spoofed e-mail will look as if it came from the actual executive. Upon receipt, an unsuspecting employee complies. Once the fraud is detected the funds cannot be retrieved. Last month the City of Saskatoon was victimized by the scam and lost more than 1 million dollars. Lethbridge Police say they are aware of two CEO frauds locally. In one case $350,000 was stolen. Sgt. Paolo Magliocco of the Economic Crimes Unit says that as a business owner there are ways to protect yourself from this scam.
"My advice would be simply, training. In addition to prevention methods such as making sure you always do these transactions in person, I would recommend that you train your employees...train those people in your cooperation that have the authority to move money, to manage money in any degree, train them about this fraud. Make sure they're aware of it. Ensure that there are safeguards in place, that there are strict policies in place within your corporation to make sure that you can't fall victim to the scam."