City of Saskatoon hit by online fraud
The City of Saskatoon has been affected by a fraud scheme, where a fraudster electronically impersonated the CFO of a construction company and asked for a change of banking information. The City complied, and as a result, the next contract payment intended to go to that company, $1.04 million, was directed to the fraudster’s bank account. The fraud was identified on August 12, 2019.
Upon discovering the fraudulent activity, the City notified its internal auditor, the Saskatoon Police Service and other authorities including banking institutions.
“Our focus at this time is on recovery of the funds. We have experts engaged from our internal auditor, the banks affected, and the Saskatoon Police Service. Additionally we have external and internal experts pouring over financial transactions and processes to do everything reasonably possible to protect the City from any further attacks”, City Manager, Jeff Jorgenson says.
“This incident is a serious criminal matter, and the City is working hard to recover these funds, minimize the opportunities for this to occur in the future, and to cooperate with the police in this investigation,” says Mayor Charlie Clark
“As this is an ongoing investigation, the City cannot disclose further details about the fraud at this time. The City is now notifying the media and the public in an effort to be transparent and also to warn other corporations. The City will continue to work with and fully cooperate with law enforcement”, says Jorgenson.