Canadian Anti-Fraud Centre and partners assist in $3.5M recovery linked to sophisticated payment redirection fraud

The Canadian Anti-Fraud Centre (CAFC) worked with a Canadian financial institution to help recover approximately $3.5 million CAD linked to a sophisticated payment redirection fraud targeting a Quebec business.

In April 2026, fraudsters targeted a business involved in a high-value commercial transaction. The fraud involved a form of spear phishing where criminals impersonated legitimate contacts and manipulated email communications to provide fraudulent payment instructions.

Believing the instructions were legitimate, the victim authorized two wire transfers. The fraud was identified shortly afterward when financial institutions detected concerns with the beneficiary account information.

The incident was quickly reported to the CAFC's Report Cybercrime and Fraud website, which allowed the centre, financial institutions and investigative partners to coordinate response efforts quickly, resulting in the recovery of approximately $3.5 million CAD to date. Recovery and investigative efforts remain ongoing.

Payment redirection frauds commonly target small and medium enterprises. Recent reporting suggests that businesses in the construction and contracting industry, and real estate sector are common targets. Fraudsters may impersonate suppliers, contractors, financial institutions or legal representatives to redirect payments or change banking information.

Warning signs

• Requests to change or update banking or payment information
• Pressure to act quickly or bypass normal procedures
• Email addresses that closely resemble legitimate ones
• Unexpected wire transfer instructions
• Requests to send payments to new accounts
• Notices of past due invoices you have already paid

How to protect yourself

• Independently verify payment instructions before sending funds
• Confirm banking changes using trusted contact information
• Use multi-factor authentication on business email accounts
• Train employees to recognize spear phishing and payment redirection frauds
• Report suspicious activity immediately

Quick facts

• Spear phishing fraud losses were in excess of $68 million CAD in 2025
• In the first three months of 2026, Canadians reported nearly $31 million CAD in losses related to spear phishing frauds, showing the growing impact of these schemes
• Reporting fraud quickly may improve the likelihood of fund recovery. Anyone who believes they may be a victim of fraud should contact their local police service and report the incident to the Canadian Anti-Fraud Centre

Associated links

• Canadian Anti-Fraud Centre – Spear phishing
• Report Cybercrime and Fraud | National Cybercrime and Fraud Reporting System
• Royal Canadian Mounted Police

Contact

Canadian Anti-Fraud Centre
media@antifraudcentre.ca
705-499-4572

Date modified:

2026-05-13