As we approach the summer holiday season, here is a reminder of the dozens of fraud alerts that we've issued in recent years based on reports from lawyers around the province. You should always be vigilant to fraud, but particularly a) following the pandemic, when scammers target distracted staff and impermanent workplaces, hoping that these vulnerabilities will delay detection of scams; and b) around the holiday season, as scammers frequently target firms in hopes that the extra banking closure days and/or staff vacations will further delay detection of a scam. Here is a round-up of the most recent common scam attempts and red flags that we've been seeing:
FRAUD ALERT: Increase of Fraudsters Impersonating Real Estate Lawyers (Apr 24th, 2023)
FRAUD ALERT: Fraudulent IDs Continue to Pose Risk to Transactions (Mar 28th, 2023)
FRAUD ALERT: Phony Email Requests from Boss/Colleague (Feb 21st, 2023)
FRAUD ALERT: Large Commercial Purchase Scams (Construction/Medical/Marine Equipment) (Jan 23rd, 2023)
FRAUD ALERT: "Dog Bite" Scam Circulates Again (Nov 18th, 2022)
FRAUD ALERT: Alberta Issues Social Engineering Scam Warning for Lawyers (Oct 25th, 2022)
FRAUD ALERT: Identity Theft Scams Continue to Target NS Lawyers (Sep 27th, 2022)
FRAUD ALERT: Alberta Lawyers Avoided Trust Account Shortfalls, Recognized Red Flags (Aug 22nd, 2022)
FRAUD ALERT: Copyright Infringement Scam Emails (Jul 25th, 2022)
FRAUD ALERT: Beware Scam Attempts During Summer Holidays, Pandemic (Jun 24th, 2022)
FRAUD ALERT: Fund Transfer Fraud Warning from BC Lawyers Indemnity Fund (May 31, 2022)
FRAUD ALERT: LAWPRO Issues Warning for Fraudulent IDs Used with Mortgages (May 19th, 2022)
FRAUD ALERT: "Get Cyber Safe - A Guide for Small and Medium Businesses" (Apr 22nd, 2022)
FRAUD ALERT: Large Loss Scam Warnings from the Law Society of Alberta (Mar 24th, 2022)
FRAUD ALERT: Scammers Impersonate NS Lawyers (Feb 18th, 2022)
FRAUD ALERT: LAWPRO Issues Warning for Private Mortgages in Real Estate (Jan 21st, 2022)
FRAUD ALERT: Large Construction Machine Purchase/Transaction Scam (Oct 22nd, 2021)
FRAUD ALERT: NS Lawyers' Website, Contact Information "Spoofed" (Sep 27th, 2021)
FRAUD ALERT: Cyber Scams Rampant (Aug 23rd, 2021)
FRAUD ALERT: Law Society of BC Issues Land Title Warning (Jul 23rd, 2021)
FRAUD ALERT: "Dog Bite" Cheque Scam Resurfaces (May 25th, 2021)
FRAUD ALERT: Recent Cyber Attack on NS Lawyer (May 27, 2021)
FRAUD ALERT: Law Society of BC Issues Shelf Company Inquiries Warning (Apr 27th, 2021)
FRAUD ALERT: Ransomware Attacks Hit Three U.S. Law Firms in 24 Hours (Feb 23rd, 2021)
FRAUD ALERT: BC Law Firm Attacked by Trojan Virus (Jan 25th, 2021)
FRAUD ALERT: Negligence Lawsuit Against Law Firms Highlights Liability Risks of Wire Scams (Nov 24th, 2020)
FRAUD ALERT: Fake Law Firm "Lawman & Associates" (Oct 26th, 2020)
FRAUD ALERT: Job Application Email Scams (Sep 21st, 2020)
FRAUD ALERT: Fake Law Firm Websites Targeting Lawyers (Jul 27th, 2020)
FRAUD ALERT: Manitoba Firms Fall Victim to Ransomware Scams (Jun 24th, 2020)
With bad cheque schemes, a lawyer is retained by a bogus client and receives funds into his or her trust account by way of a cheque or bank draft that appears legitimate. A sense of urgency with the transaction is often implied by the client. As a result, within days of receiving the funds and depositing them to the trust account, the lawyer pays out funds from the account before learning (sometimes many weeks later) that the funds were bogus, the cheque returned and his or her trust account debited.
Scammers frequently target firms just before a holiday weekend, as they know that this is a time when offices are often short staffed and transaction details might not be checked as closely as they might otherwise be. Also, the extra banking holiday will result in delays in the return of counterfeit cheque or bank draft to the firm. If you do decide to proceed with a transaction where the funds are received and are to be paid out within a short period, be sure to go to the bank website to verify branch transit number, address and phone number on the cheque. Wait until the bank confirms that the funds are legitimate and are safe to withdraw from the deposit. You may also choose to use the Bank of Canada’s Lynx system, an electronic funds transfer system in which settlement occurs after the clearing of each individual payment, resulting in the transfer of funds in central bank money from one participant to another. Once settled, a payment is final and irrevocable.
Remember that you must always confirm a prospective client’s identification in accordance with the Client ID Regulations of the Nova Scotia Barristers’ Society.
Be vigilant with every request for services that you receive, not just those received via the internet. Fraudulent requests for services can be made by mail and courier, as well as by individuals who arrive in person to retain you and to use your trust account to receive and disburse funds. Be cautious with all cheques received, especially if they exceed the agreed upon amount.
For tips to avoid being victimized, and to report or seek advice on dealing with fraud and scam attempts, contact Cynthia Nield at cnield@lians.ca or 902 423 1300, x346