Scammers are targeting Canadians with a scam that involves impersonating a bank employee or law enforcement agency to try to convince them to assist with a “bank investigation” or a “law enforcement investigation.”
This particular scam is often known as the "Bank Investigator Scam.”
While bank investigator scams can take many forms, typically the end goal is to obtain personal information and trick a person into sending funds to the scammer. A scammer may also attempt to obtain the person’s physical debit or credit card and convince them to provide their PIN and/or password to gain access to the their accounts.
Here’s how it works:
Impersonation of bank employee or law enforcement
Typically, the scam takes place when a person receives a phone call from a scammer posing as an employee of the fraud department at their bank. The scammer typically provides their name and a phony employee number and informs the customer that their accounts have been compromised, or that the bank is investigating a series of fraud cases that have been committed by staff at the customer’s branch – sometimes even providing actual names of staff members at a branch.
The scammer will ask the customer to assist with a joint law enforcement investigation into the fictitious fraud cases, and instruct the customer to keep the investigation confidential from branch staff and family or friends. In some cases, to help encourage participation, the scammer promises some form of compensation for the customer in exchange for their assistance.
Fake fund deposits
Sometimes a scammer will seemingly deposit money into the customer's account through fraudulent cheques, or by using cash advances from the customer's own credits cards or lines of credit without the customer being aware, and then ask the customer to wire the money back to the scammer, claiming that the transaction will be used as evidence as part of the investigation.
Protect yourself
It is important to know that neither TD, nor a law enforcement agency, will ask you to withdraw money or perform any financial transaction to assist with an investigation of any kind. TD will also never call you to ask for your one-time security code that is sent to your mobile device or email address unless you initiate the interaction, or ask to collect your physical debit or credit card from your home along with your PIN and/or password.
As is the case with many types of fraud, if an offer sounds suspicious or too good to be true, it most likely is.
Here are some tips to avoid falling victim for the bank investigator scam
Be wary: Do not trust unsolicited calls, especially when the caller is asking for personal information. If you receive a call from someone who says that they are from your bank, hang up and contact the number on the back of your debit or credit card.
Do not assume that a phone number is legitimate: Although your call display may show that a call is coming from your bank, do not assume that the caller is legitimate. Scammers often use call spoofing technology (call displays may show the name of a company or financial institution) to make you believe their request is authentic.
Verify the source of funds: In order to make you believe that they have deposited money into your account, scammers may actually transfer your own funds from another one of your accounts or credit products (e.g. credit card, HELOC, etc.) into your primary bank account. It's important to review all your accounts for any transactions that you did not perform yourself.
Use caution: In an effort to prevent detection, scammers may instruct you to lie to bank employees about why you are withdrawing money and who you are transferring it to. Always be honest in your interactions with bank employees.
Protect your personal information: TD will never call you to ask for the one-time security code that is sent to your mobile device or email address. If you call TD, TD employees will ask basic questions to verify your identity, but will not ask you to disclose your passwords or your PIN number on the phone. If you feel uncomfortable on a call or feel like you are being asked questions that are too personal, hang up and contact the number on the back of your debit or credit card.
Do not provide access to your devices: TD will not ask you for remote access to your device, such as a laptop. If you receive a call from someone who says they are from your bank and asks you to download software onto your device, hang up the phone.
TD encourages its customers to take some time to get educated about common scams and learn ways they can avoid them.
Here are some more ways you can protect yourself:
Understand your obligations: You should understand your responsibilities as an account or card holder. Your obligations are set out in the account agreements that you sign when opening a new account or new product.
Get educated: The Canadian Anti-Fraud Centre can help you learn more about common frauds and scams. You can also visit the TD Fraud Hub to learn more about ongoing fraud trends and ways to protect yourself.
Sign up for fraud alerts: If you sign up for TD Fraud Alerts, you will receive a text message notifying you if TD detects suspicious activity on your accounts.
If you have been the target of a scam:
Report suspicious activity: If you or a family member has been the target of a scam, report the indicent to the police, your financial institution, and the Canadian Anti-Fraud Centre."
Talk about it: If you have fallen victim to a scam, share your story. Spreading awareness can help prevent other people from being scammed as well.
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