Quick report helps Quebec business recover $3.5 million from payment redirection fraud
The Canadian Anti-Fraud Centre (CAFC) said May 13 that it worked with a Canadian financial institution to recover about $3.5 million for a Quebec business that sent two wire transfers to fraudsters in April.
The case shows how much timing matters. Once diverted money moves on to other accounts, it is rarely recovered. Here, the victim reported the incident quickly through the federal Report Cybercrime and Fraud website, which let the CAFC, banks and investigators act together, the centre said.
What happened
The business was in the middle of a high-value commercial transaction. Criminals impersonated legitimate contacts and altered e-mail exchanges to supply false payment instructions, a form of spear phishing the CAFC calls payment redirection fraud. Believing the instructions were genuine, the business authorized two wire transfers. Financial institutions flagged concerns about the beneficiary account details shortly afterward.
The CAFC said recovery and investigative work are continuing. It did not name the business or say how much was sent in total.
A growing business problem
The centre said payment redirection fraud commonly targets small and medium enterprises, and that recent reports point to construction, contracting and real estate as frequent targets. Fraudsters may pose as suppliers, contractors, banks or lawyers.
Canadians reported more than $68 million in spear phishing losses in 2025 and nearly $31 million in the first three months of 2026, according to the release. A CAFC spokesperson cited the same figures in CTV News coverage of a separate Manitoba lawsuit two days later.
Warning signs
- A request to change banking or payment information, especially close to a closing or large payment.
- Pressure to act quickly or skip normal approval steps.
- An e-mail address that is almost, but not exactly, the one you know.
- A past-due notice for an invoice you have already paid.
What to do
- Confirm every new set of wire instructions by phone, using contact details you already had.
- Turn on multi-factor authentication for business e-mail and train staff who handle payments.
- If you have sent money, call your bank first, then report to local police and the CAFC at 1-888-495-8501 or through the Report Cybercrime and Fraud website. "Reporting fraud quickly may improve the likelihood of fund recovery," the CAFC said.
