E transfer loans in canada

How to Protect Yourself from E- transfer Scams

With technological modernization and development, banks and other financial institutions adopt new methods and software to provide fast and easy money to people in need. 

Online transfers mostly occur with online loan lenders because their complete process, from the application form to transfer, is online and is more susceptible to e-transfer scams. Several people fall victim to these scams because online lenders are popular for providing bad credit personal loans in Canada. Therefore, needy people often end up making a mistake.

If you are facing a similar issue or have experienced being scammed, you know how compelling they can be. Unfortunately, often you won’t realize that you are being scammed until it’s too late. 

Believe it or not, as the world is becoming advanced, the gap between rich and poor is increasing. Many entrepreneurs say, sooner or later, there will be only two classes of people – rich and poor, no middle class. 

So, how can it affect you?

It doesn’t impact directly but think about it! Humans are programmed to do everything to ensure their survival, and if the basic needs are not fulfilled, their primitive instincts will do anything to ensure they and their families are safe and not hungry.

This gives rise to scammers and potential threats that may target you to get money from. If you read a newspaper, everyday news of people being scammed or getting fraud while doing an online transaction is common. So what do to do?

To avoid being scammed, you first have to know about the various scams you can fall victim to. Here we will discuss the most common e-transfer scams people fall victim to and how you can deal with them.

Popular types of e-transfer scams

Scam of the Commandeered E-Transfer

This e-transfer scam is the most dangerous and toughest to detect of all the varieties. A hacker or software like spyware or malware blocks the device used for sending or receiving an e-transfer and accessing your online banking or email account.

Once the malware has access to your accounts, they examine your transactions and discover your account information, including banking passwords.

Once your personal information has been obtained, the next time you make a payment with a link to the user’s bank account, as it is the standard procedure for e-transfers, you will be asked to provide your personal information again. 

From there, the fraudster can guess the security question and gain access to your funds, which is why it’s critical to choose a unique answer rather than anything apparent like your name or address. 

The scammer can then divert the e-transfer to a different account without realizing it because all you receive is a confirmation email claiming that the fund transfer is successful.

How to spot this scam:

  • The transfer is not received on time.
  • Because the transfer has already been accepted, the recipient cannot accept it.
  • The recipient sends an email or SMS requesting a response to a security question about the transfer.
  • It’s far too easy to predict the security question or response.

Scams at online Marketplace

E-transfer frauds on Facebook Marketplace, Craigslist and Kijiji, are becoming increasingly common as more people turn to these platforms for local goods and services. 

Scammers who pose as merchants on online marketplaces take advantage of buyers by employing the following techniques:

  • You contact a merchant to buy something or get a service from them, send them the money, and then find out their bank account is frozen or fake.
  • You agree to sell an item or provide a service, but the customer will not pay until they have the item or service, and their account is blocked after you made the transaction.

A fraudster will use these strategies to achieve their goal of leaving you empty-handed while enjoying the money they took from you. Unfortunately, reporting these types of behaviors to your financial institution can cause you more problems because they may not be able to help you further.

How to spot this scam:

  • The money will be transferred to you only after the buyer has received the items or service.
  • Before delivering products or providing services, the seller seeks payment.
  • The buyer/seller is pushy, rude, or doesn’t respond to your messages.
  • The buyer/seller buys or sells quickly before you have a chance to second-guess the transaction.

The Scam of the Fraudulent Cheque

One of the ways that internet scammers can steal money from your account is by depositing fake checks that will bounce after the banking institution verifies them. 

The money is presumed to be in the account until the cheque is reviewed, after which the fraudster will e-transfer the cash to their account, where they can withdraw the money. 

While nothing appears to be wrong with your bank account, as soon as the bank confirms the fake check and it bounces, they will make a record of it.

Knowing how to avoid becoming a victim of a fake cheque scam or cheque kiting is the greatest approach to avoid becoming a victim of these types of crimes.

How to spot this scam

  • You get a notification indicating a successful e-transfer you didn’t send.
  • Your account is frozen, and your bank card refuses to accept purchases.

What to do if you have been scammed?

You can do a few actions to protect yourself if you have been tricked while making an e-transfer payment.

  • As soon as you become aware of the fraudulent activity, contact your bank; they may be able to reject the transaction before the money is debited. They’ll track the transaction and investigate the incident to prevent it from happening again.
  • Reporting the incident to the authorities help keep track of it and avoid future attacks. They also investigate and try to solve your case.
  • Examine your online banking agreement to see what they’re liable for in these situations, as well as what you need to do to keep safe.

Implement the following steps to improve the security of future e-transfers

  • Make passwords for your email and a bank account that is difficult to guess.
  • Create a separate email account for e-transfers with restricted personal information.
  • Before sending or receiving an e-transfer, make sure you trust the source or person.
  • Before initiating a larger e-transfer, send a tiny trial deposit to validate the account.
  • Make it a habit to review your banking information regularly to ensure that no security breaches have occurred.
  • Before receiving or sending money to unknown sources, notify your bank.


By following the steps mentioned above, you can guard yourself against scammers and ensure your money is safe and is transferred to the desired place. Keep these tips in mind while getting E-transfer installments loans in Canada.