Oct 17, 2026
A routine email asking you to update banking information could send thousands of dollars straight to a fraudster, even if the message looks as though it comes from someone you already know.
That’s the premise behind spear-phishing scams, which use compromised or spoofed communications to impersonate trusted contacts and redirect payments. The Canadian Anti-Fraud Centre (CAFC) reported approximately $57.7 million in spear-phishing losses in the first six months of 2026, compared with more than $68 million over all of 2025.
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The CAFC says fraudsters rely on “impersonation, urgency, convincing communications and established trust” to obtain money or personal information.
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The scams can target businesses by posing as suppliers or contractors, and homeowners paying renovation invoices face a similar risk: money intended for a legitimate contractor could end up in a criminal’s account.
How the ‘changed banking details’ scam works
The fraud often starts with an email that appears to come from a legitimate supplier, contractor or business contact, asking the recipient to update banking information for an upcoming payment.
Fraudsters may compromise a legitimate email account, monitor correspondence or use a lookalike address to make the request seem genuine. By referencing a real invoice or ongoing project, they can make fraudulent payment instructions appear routine.
A recent report detailed four cases in northern Ontario in which Indigenous businesses and organizations lost more than $800,000 combined after fraudsters impersonated trusted contacts and redirected payments.
“In many cases, victims believe they are paying a legitimate supplier or contractor and only discover the fraud when the intended recipient follows up about an unpaid invoice,” Jeff Horncastle, client and communications outreach officer at the Canadian Anti-Fraud Centre (CAFC), told Money.ca.
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Why homeowners paying renovation bills should be careful
Homeowners can face the same risk when paying for renovation work. An email appearing to come from a contractor might provide new banking details for the next installment. Without independently checking the change, a homeowner could send money to a fraudster instead of the contractor.
Familiar names, real projects and expected payment dates can make fraudulent requests difficult to spot. Before transferring money, make sure to take the necessary steps in order to protect yourself from phishing scams.
How to protect yourself from payment redirection fraud
Verify banking changes by phone
Call the contractor or supplier using a number already on file or obtained from a trusted source. Don’t rely on contact details in the email requesting the change, as these could also be controlled by fraudsters.
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“Taking a few extra minutes to independently verify payment instructions can prevent substantial financial losses,” Horncastle said. “No legitimate request to change banking information should be exempt from verification simply because it appears to come from a familiar or trusted source.”
Treat payment changes as a reason to pause
Be cautious of urgent requests or instructions that depart from the usual payment process. Verify the request before acting, even if it relates to a genuine invoice or ongoing project.
Check email addresses carefully
Look for subtle differences in the sender’s address, including misspellings or changes to the domain. Don’t rely on the display name alone.
Businesses can strengthen payment controls
Businesses can reduce the risk of payment redirection fraud by establishing a clear procedure for verifying banking changes independently, introducing a second approval step for significant payments, and securing business email accounts with strong passwords and multi-factor authentication.
What to do if you’ve sent money to a fraudster
“The first and most important step is to contact the financial institution that sent the funds,” Horncastle told Money.ca.
Immediately and explain to them that the transfer may be fraudulent. Ask whether it can stop, recall or recover the funds.
“Time is critical. The first hours and days following a fraudulent transfer can be particularly important,” he said. “The recovery of funds is not guaranteed, and victims should not delay reporting while attempting to resolve the matter themselves.”
Victims should also report suspected fraud to local police and the Canadian Anti-Fraud Centre, preserving emails, invoices and other documents that may help financial institutions and investigators.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and U.S. brands.
