Fake Interac e-Transfer Deposit Scams: What Ontario Business Owners Need to Know

As digital payments become the norm for small businesses across Canada, fraudsters are constantly evolving their tactics. One growing threat is the fake Interac® e-Transfer deposit scam, where scammers send phishing emails or texts posing as legitimate payment notifications.

For business owners—who often handle multiple transfers, vendors, and payrolls daily—these scams can be especially dangerous. A single click could expose sensitive financial data, compromise your company’s accounts, or result in thousands of dollars lost.

Here’s what small business owners in Ontario need to know about this scam, how it works, and how to protect your business in 2025.

How the Scam Works

These scams use increasingly sophisticated methods that mimic real Interac transactions. Here's a typical four-step playbook:

1. Spoofed Messages:
   You receive an email or text that appears to be from Interac or your bank. It may reference a vendor payment, tax refund, or customer deposit. Logos, colours, and links look legitimate.
   
   
2. Fake Deposit Link:
   You’re prompted to “accept the transfer” by clicking a link. This link leads to a fake login page that closely resembles your bank’s website.
   
   
3. Credential Theft:
   If you enter your login credentials—and in many cases, your multi-factor authentication (MFA) code—the fraudster captures them in real time.
   
   
4. Account Takeover:
   With full access, the fraudster may transfer funds, open new accounts, or change passwords and contact details—leaving you locked out.

Red Flags to Watch For

Small businesses are often targeted during busy seasons like year-end, tax deadlines, or payroll periods. These warning signs can help you detect a fake e-Transfer:

• Unexpected payments: Always verify unknown e-Transfers before taking action.
• Generic greetings: Legitimate messages typically include your or your business name.
• Urgency or threats: Phrases like “expires in 24 hours” are red flags.
• Suspicious links or domains: Hover over links before clicking—look for subtle misspellings or strange URLs.
• Branding inconsistencies: Low-resolution logos, typos, or formatting glitches suggest a scam.

How to Protect Your Business

Fraud prevention is now a core part of managing any business. Here are key strategies to minimize risk:

✅  Enable Interac Autodeposit -Set up Autodeposit for all business accounts to ensure funds go directly into your account without needing to click a link. This eliminates a major vulnerability.

✅ Limit Payment Channels - Use standardized, secure payment methods with clients and vendors. If you only accept payments through Autodeposit or secure platforms, you're less likely to be caught off guard.

✅ Educate Staff and Bookkeepers - If your employees or contractors handle banking tasks, make sure they are trained to spot phishing scams. Include this in onboarding, and revisit it annually.

✅ Strengthen Authentication - Use unique, complex passwords and enable MFA (multi-factor authentication) for all online banking platforms and accounting software.

✅ Review Accounts Frequently - Don’t wait for month-end. Check your banking activity weekly (or daily during busy periods) to catch unauthorized transactions early.

✅ Use Business-Grade Security Tools - Work with an IT provider to ensure you have anti-phishing filters, secure Wi-Fi, and endpoint security for devices used for banking.

What to Do If You're Targeted

Act immediately if you believe you’ve clicked a fake link or shared banking credentials:

1. Contact your bank or credit union immediately
   Ask them to lock your account, reset credentials, and investigate unauthorized activity.
2. Notify Interac and the Canadian Anti-Fraud Centre
   Report the fraud to www.antifraudcentre-centreantifraude.ca or call 1-888-495-8501. This helps others avoid similar scams.
3. Alert your accountant or bookkeeper
   They can help you review your financial records for irregularities and assist with CRA reporting if needed.
4. Notify your clients if there’s a risk of exposure
   If the breach may have exposed customer data or altered your payment systems, notify affected parties transparently and follow your privacy obligations.

Watch for AI-Powered Phishing

Scammers are now using AI tools to create more convincing messages and fake websites—making it harder than ever to spot a scam at first glance. In some cases, they may even imitate your customers' names or email addresses to appear more trustworthy.

Use email verification tools, and secure contact protocols to prevent impersonation and protect your business from increasingly advanced fraud attempts.

Interac e-Transfers are fast, convenient, and widely used by Canadian businesses—but that same convenience makes them a target. By understanding how these scams work and putting safeguards in place, Ontario business owners can protect their finances and their reputation.

Koroll & Company is an accounting firm located in Newmarket, Ontario.
We provide a full range of services including accounting, taxation, auditing, and business advisory. Our clients represent a broad cross-section of small to large owner-managed businesses and not-for-profit organizations.