Can You Be Scammed by an E-Transfer? Tips to Avoid Fraud

That threatening message saying your Netflix account will be suspended unless you pay. The persistent texts that look like they’re from Canada Post claiming a delivery failed because of a wrong address. Just click a link and everything will be fixed. Scams like these are everywhere.

Sometimes fraud is brazen; other times it’s subtle and believable. Take Daria’s story: she and six friends paid a “travel hacker” named Bailey for a trip to Thailand in January 2024. They had met Bailey in a Clubhouse group where she and other co-moderators shared useful travel tips. (Names changed because the matter is unresolved.)

The seven women booked hotels and flew 20 hours from North America, only to learn Bailey wouldn’t arrive until several days later. Then she never arrived, cancelled two days before the trip ended, and—most shockingly—had not paid for the hotel rooms with the money she was given. Only one traveller received a refund; the others filed credit card chargebacks and even contacted the FBI.

Scams and phishing attempts appear on every platform: phone, text, email and social media. While writing this, I received two calls threatening police action and a text requesting address verification. These incidents are annoying at best and financially damaging at worst. According to the Canadian Anti-Fraud Centre (CAFC), Canadians lost $638 million to fraud in 2024—and the CAFC estimates only 5% to 10% of victims report the crime.

Why do scams and phishing work on Canadians?

Why do people fall for scams? Maggie Cheung, a spokesperson for the Canadian Bankers Association, points to deception, manipulation and pressure tactics. Scammers use social engineering to exploit human psychology—creating fear, urgency and the illusion of authority to make people act without thinking.

Common tactics include threats of legal action or payment demands supposedly from government agencies, urgent requests that appear to come from a company executive, and other pressure tactics that feel believable. These schemes are sophisticated enough to persuade otherwise cautious people. That’s why even experienced writers have at times followed phishing directions under pressure.

The common types of scams

Anyone can fall victim to a scam, says Cheung. Scammers build convincing stories and exploit emotions or convenience. Some common scams include:

• Romance scams: Scammers cultivate trust and affection to extract money. The CAFC reported Canadians lost more than $41 million to romance scams in 2023.
• Grandparent scams: Scammers impersonate a grandchild in distress to request urgent financial help—often asking elders not to tell parents.
• Locked-account scams: Phishing texts or emails claim a streaming or subscription account is locked and demand payment or login to restore access. The attackers harvest credentials, lock the real user out, and take over the account.
• Online/remote job scams: Frequently found on messaging apps like WhatsApp, these offers promise easy, well-paid work but require personal information or upfront payment for supplies.

Other frequent scams include tax refund fraud, rental and housing scams, extortion, lottery scams and many marketplace frauds. The CAFC tracks more than 80 different scam types and updates guidance regularly.

One frequent vector is electronic transfers, so it’s worth understanding how e-transfers can be exploited.

Can I get scammed through an e-transfer?

While electronic transfers are generally safe, they can be misused. Marketplace scams are common: buyers pay for items on sites like Facebook Marketplace or Kijiji and never receive the goods, or sellers ship items and never receive payment.

Phishing emails claiming to be from reputable companies can trick you into revealing banking or card details, allowing scammers to access and drain accounts. Another e-transfer risk is interception: attackers guess or phish the transfer password and steal the funds. Many banks now offer automatic deposit, which eliminates the need for secret passwords—if your bank supports it, enabling automatic deposit reduces this risk.

How to report a scam in Canada

If you’ve been targeted or scammed, act quickly. Financial institutions have verification tools, but you can take immediate steps to protect yourself:

• Stop communicating with the scammer immediately, as advised by Consumer Protection Ontario.
• Change passwords for affected accounts, including email, banking and social media logins.
• Contact Equifax and TransUnion to place a fraud alert on your credit report so lenders take extra steps to verify identity before approving credit.
• Report the incident to local police and to the Canadian Anti-Fraud Centre with as much detail as possible.
• Collect and preserve all evidence: communications, receipts, screenshots and documents. If there was in-person contact, avoid handling physical items that could contain forensic evidence.
• Record a timeline of all interactions while details are fresh in your memory.

Daria and her fellow travellers followed this advice: they started documenting communications and actions as soon as they became suspicious, which strengthened their claims when they asked for refunds and filed reports.

Do banks and credit cards refund scammed money?

Report suspected fraud to your financial institution immediately. If the issue involves credit card transactions, your card issuer can freeze the card right away. Visa and Mastercard offer liability protection if you didn’t disclose verification credentials such as your PIN or secret answers, and you may be eligible for a refund. You can also dispute charges and request chargebacks through your card issuer or PayPal, though chargebacks can take weeks or longer to resolve.

If a card issuer won’t reverse the charge, you can file a complaint with the banking ombudsman. If money was stolen from your bank account, notify your bank; federal guidance says consumers aren’t responsible for unauthorized losses beyond their control, including transactions after reporting a card lost or stolen. Still, recovering funds after a scam can be challenging, so prevention and vigilance remain the best defenses.

How to check if a website, email or phone number is a scam

If you suspect phishing or fraud, take steps to verify before responding or sharing any data.

How to check your emails

• Do not click links in unsolicited emails, texts or messages. Hover over a link to preview its destination before clicking.
• Consider the sender address. Legitimate businesses rarely use public email services like Gmail or Yahoo for official notices—treat such messages with suspicion.
• Check spelling and domain names closely. Slight misspellings (for example, “microsftonline” instead of “microsoftonline”) indicate fraud. Poor grammar and awkward phrasing are additional red flags.
• Watch the tone. High-pressure demands for immediate action—payment requests or urgent fund transfers—are classic signs of a scam. When in doubt, contact the company directly using a verified phone number or website.
• Be cautious of unexpected invoices and attachments.

Suspicious websites

• Hover over the URL to inspect it for errors or unusual spellings.
• Scan the site content for spelling and grammatical mistakes.
• Look for “https” in the URL; the “s” indicates encryption—but be aware even “https” sites can be spoofed.
• Be wary of uncommon domain endings or altered domains intended to mimic legitimate sites.
• Check the SSL certificate by clicking the padlock icon in your browser to confirm the site’s encryption and ownership details.

Unknown phone numbers

• Recognize that companies like Amazon, Visa or the Canada Revenue Agency do not call to threaten you with immediate police action.
• Let unknown numbers go to voicemail. Then research the number or find the organization’s official phone number on its verified website.
• Never give personal details to an unsolicited caller. Hang up and call the company using a confirmed phone number found on bills, receipts or the official website.
• If you receive a grandparent-style emergency call, hang up and call family members directly to verify the situation.

If you suspect a scam, report it to the company involved and to police. Prompt reporting may prevent others from becoming victims and can improve the chances of recovering funds.

Read more about fraud and scams:

• How to protect yourself from identity fraud in Canada
• Financial fraud in Canada: What to do if your bank account or credit card is compromised
• 10 common crypto scams and how to avoid them
• Canadian seniors, watch out for these scams
• Lost wallet? Here’s how to protect yourself from fraud