Fraud Alert: Moving Money for Strangers

Criminals want you to do their banking for them. If they earn your trust, they'll use your account to cash phony cheques, collect funds from other accounts, and move stolen money offshore. They use a variety of schemes to convince you that they're legitimate. Some will even give you money to earn your trust. By accepting and re-directing electronic deposits (such as wire transfers), you could be participating in a money-laundering scheme if those deposits were proceeds of a fraud or other criminal activity. The stories vary, but the results are the same: fraud and financial loss.

Common Fraud Stories

The Lottery Scam	A criminal tells you you've won a lottery. But taxes need to be paid first. If you're unable to pay the fee on your own, you may be offered financing from a third party (who is involved in the scheme). You receive a cheque to cover the taxes and then wire the money to cover the taxes. Afterward, you learn that the original cheque was fraudulent and that you're responsible for the losses.
The Overpayment	The criminal buys something from you and overpays for the item. After you refund the difference, you learn that the original payment was fraudulent and the charges have been reversed.
Earn Money From Home	A job offer involves receiving funds into your bank account and then transferring a portion of the collected funds on to another account. After transferring the funds, you learn the original transaction has been reversed.
The Government Official	A criminal tells you they are a government official from another country, and that they need your help getting funds out of the country. You receive monies and then forward them. Like the above cases, the original deposit is fraudulent and you're liable for the amount forwarded
The Inheritance	A relative you never met has left you money in their will. But you need to pay service fees before receiving the funds. Like the other examples above, this scam can leave you on the hook for significant financial losses.

Minimize the risk

Never conduct financial transactions on behalf of strangers
Be wary of any offer that sounds too good to refuse
Be aware that cheques and other funds deposited into your account can be reversed long after the funds have cleared
Never wire funds until the legitimacy of the cheque or electronic deposit is confirmed
If you suspect a cheque may be fraudulent, we recommend that you have the cheque certified at the issuing bank (the bank which appears on the cheque); you can also instruct your CIBC branch to send the cheque to the issuing bank "on collection"

What to do if you suspect fraud is happening to you

Contact your local branch, Telephone Banking: 1-800-465-2422;
or Online Banking: 1-888-872-2422
Contact Phonebusters at 1-888-495-8501. Or by fax: 1-888-654-9426