Beware of Requests to Change a Supplier's Banking and/or Mailing Details
In this scam, the fraudster typically makes contact with the Accounts Payable area of a business and explains that the supplier's address and banking information have changed. The fraudster requests that all future payments for this supplier be sent to this new bank account and/or mailing address.
These fraudsters have used a variety of methods to initiate this scam:
- They send a false fax designed to look like a legitimate fax from the actual supplier, or
- They send an e-mail from a phoney e-mail account, claiming to originate from the actual supplier, or
- They call an individual in the Accounts Payable area with the request, and follow up with a false fax or e-mail, as described above
It is prudent for all businesses to be aware of such scams and consider implementing protective measures
Protect your business from this type of scam by advising your Accounts Payable team that whenever a supplier contacts them and requests that they update sensitive, high risk information (such as banking information, company mailing address, key contact names, or business name), they should make a return call to a trusted contact person at the supplier to validate that this request is legitimate.
- Do not advise the individual making the request that the validation call will be made
- Do not use any new telephone number(s) provided by the individual making the request
Avoiding Internet Stock Fraud
The Internet is an excellent tool for investors to easily and inexpensively conduct research on companies of interest. However, the Internet is also an efficient means of disseminating information related to fraudulent investment opportunities and artificially inflating the price of thinly traded securities.
Any investment opportunity you learn about via the Internet should be approached with extreme caution and be fully investigated before you invest. Information that appears on a computer is not necessarily true. Messages from experienced fraudsters often look very professional and may appear to be legitimate investment opportunities. You should never make an investment based solely on the content of an online newsletter, bulletin board or mass e-mail.
Securities regulations DO apply on the Internet
The power of the Internet has tempted many new ventures to try to sell securities to the public illegally. In Canada, and in many other countries, the general rule is that securities can be distributed to the public only after the regulators have vetted the company's prospectus. The failure of companies, dealers or advisors to comply with regulations should be a red flag that alerts you to a potential investment scam.
Your securities regulator can tell you whether an individual or company is registered to trade or advise in your area and whether the company selling the securities has filed a prospectus. Even then, the securities must be distributed through a registered dealer. You can check a person's registration by contacting your securities regulator.
Some simple precautions can keep you from becoming a victim of Internet investment fraud:
The telephone has long been used by criminals to make calls pretending to be a bank investigator, examiner or an employee of a bank or credit card company. Now, with advances in telephone technology, it is possible for these criminals to make fraudulent calls and have the call display show the legitimate bank or credit card companies name and telephone number.
If you receive an unsolicited telephone call from someone claiming to be from a bank or credit card company, here are some quick tips to help determine if the call is legitimate:
- To ensure that we are speaking with the correct person, CIBC will ask a limited number of basic questions at the start of the call to verify your identity. If you feel the questions are too personal or the call is making you uncomfortable, we recommend that you end the call and call CIBC using either the number on the back of your credit or debit card
- Only CIBC will contact you about your CIBC Credit Card account. A credit card company such as Visa will never contact you directly
- CIBC will not ask you to disclose your PIN or passwords to an agent on the telephone
- CIBC will never ask you to withdraw money or perform any financial transaction to help in a fraud or internal investigation of any kind
Types of calls CIBC will make
CIBC will call you about unusual activity on your account or in response to a request you initiated. CIBC may also call you periodically about new products and services.