City of Saskatoon hit by internet fraud that sends $1M to wrong bank account

The city contacted police after the fraud was discovered on Monday

The City of Saskatoon says it has lost $1 million after it was targeted in an online scam. Saskatoon mayor Charlie Clark speaks with media at the Legislative Building in Regina, Tuesday, April 10, 2018. THE CANADIAN PRESS/Mark Taylor

The City of Saskatoon says it has lost $1 million in an online scam.

City manager Jeff Jorgenson says a fraudster electronically impersonated the chief financial officer of a construction company that has a contract with the city.

He says the culprit asked to have a payment sent to a new bank account and the city complied.

The city contacted police after the fraud was discovered on Monday.

It has hired experts to try to recover the money.

ALSO READ: ‘Sextortion’ emails on the rise, targeting Canadians who may or may not visit porn sites

Jorgenson says the city is reviewing its financial controls to make sure it is secure from future attacks.

“The attacks are always there. They’re always changing,” he said at a news conference Thursday.

“The fraudsters are becoming more and more sophisticated, and our controls and systems have to become more and more sophisticated as well.”

Mayor Charlie Clark said the city decided to go public with the fraud to be up front with taxpayers and warn others so it doesn’t happen to them.

Two years ago, MacEwan University in Edmonton reported that it had been defrauded of $11.8 million when three staff members were fooled into changing the electronic banking information of a construction company.

The university said it was able recover $10.9 million because of a quick response by the school, lawyers, banks and the police.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Inquest planned in death of Peter de Groot

It’s been five years since the Slocan man was shot by RCMP

COLUMN: The ups and downs of electric vehicles

Three Nelson city councillors set out to get to Vancouver from Nelson in an electric car

COLUMN: East Shore finds diligence lacking on ferry decision

Opinion from Herve Blezy of the East Shore Advocacy Society

COLUMN: Library’s Voting 101 session puts election in new light

Anne DeGrace describes a library discussion last week that aimed to “de-spin” the election

Plastic reduction: these Nelson businesses are on it

October is plastic waste awareness month in Nelson

Scheer, Trudeau, Singh haggle over potential minority government outcome

If you believe the polls, it appears the Liberals and Conservatives are neck-and-neck

Canucks beat Stanley Cup champs 4-3 in a shootout

Leivo nets winner, Vancouver dumps St. Louis for fourth straight win

‘The more you test, the more you find’: Beef recalls a sign of success, experts say

Despite appearances, experts say a recent rise in major recalls is not a sign of food supply problems

Two years later, City of Fernie remembers

Oct. 17, 2019 marks two years since the tragic ammonia leak at Fernie Memorial Arena

Japanese buyer expands wood pellet contract with B.C.’s Pinnacle

Mitsui and Co. increases contract with Interior energy producer

Cannings endorsed by David Suzuki

South Okanagan-West Kootenay NDP candidate loading up on endorsements

ELECTION 2019: Have Justin Trudeau’s Liberals really cut middle-class taxes?

Conservative Andrew Scheer vows to cut bottom bracket, NDP’s Jagmeet Singh targets wealth tax

B.C. RCMP officer suing the force for malicious prosecution

Cpl. Tammy Hollingsworth cleared of wrongdoing after misconduct hearing

Talk to your kids about vaping, B.C.’s top doctor says

B.C. health officials have discovered the first vaping-related illness in the province

Most Read