Instant payments have changed how people pay each other. Around the world, real-time payment systems let money move from one account to another in seconds. In Canada, Interac e-Transfer is used to split bills, pay rent, buy second-hand items and pay small businesses. The same speed that makes instant payments convenient also makes them attractive to scammers: once money is sent and deposited, it is very hard to get back.
Why businesses like instant payments
- Money arrives quickly, improving cash flow
- Lower fees than some card payments
- No card terminal needed for small sellers
- Easy for customers who already use online banking
Why scammers like them too
- Payments are fast and usually irreversible
- Victims can be pressured into paying immediately
- Fake payment notifications are easy to imitate
- Money can be moved on quickly once received
Common e-Transfer scams
| Scam | How it works | How to avoid it |
|---|---|---|
| Fake deposit notification | An email or text says you received money and asks you to click a link and log in | Log in directly through your bank’s app instead of clicking links |
| Rental deposit scam | A fake landlord asks for a deposit before you see the unit | Visit in person and verify the owner first |
| Marketplace overpayment | A buyer sends too much and asks for a refund of the difference | Confirm the deposit in your bank account; refuse refund requests |
| Impersonation | A fake bank, CRA agent, police officer or relative demands urgent payment | Hang up and call back using an official number |
| Fake ticket or product sales | Seller takes payment and disappears | Use protected payment methods for purchases from strangers |
Safety tips for consumers
- Only send e-Transfers to people you know and trust.
- Double-check the recipient’s email or phone number before sending.
- Use Autodeposit for receiving where possible, and be cautious with security questions; never share the answer in the same message.
- Never log in to your bank from a link in a text or email.
- Turn on transaction alerts and two-factor authentication.
Safety tips for small businesses
- Confirm payments in your bank account, not from email notifications.
- Verify any supplier request to change payment details by phone.
- Train staff on payment fraud; see our cybersecurity checklist for small businesses.
- Set internal limits and approvals for outgoing payments.
If you have been scammed
Contact your bank immediately; if the money has not been deposited, it may still be possible to cancel. Report the fraud to police and the Canadian Anti-Fraud Centre, and watch for follow-up identity theft. Our guides on what to do after identity theft, recognizing phishing and avoiding online shopping scams walk you through next steps.
FAQ
Can an e-Transfer be reversed?
Once deposited, generally no. If it has not yet been deposited, your bank may be able to cancel it.
Is Autodeposit safe?
It removes the need for security questions when receiving money, which reduces some interception risks. Always confirm received funds in your bank app.
Will my bank ever ask me to send money to a safe account?
No. That request is a classic sign of a scam.
