Warning to our Member Clubs
Scams targeting Trail Associations
E-mail scams and other fraudulent activities are very prevalent these days. We would like to bring your attention to the fact that one of our member organizations was recently defrauded by scammers for a substantial amount. The fraud originated with an e-mail, purportedly from the president of the association to the treasurer, asking to make an urgent wire transfer, in this case to a US bank.
The e-mail addresses had been picked up by the scammers from the association's newsletter which is posted on their website. Unfortunately, the treasurer obliged, requested the wire transfer, the money left the association's bank account, and the bank was not able to recover the funds from the other bank.
To avoid being victimized by scammers,
• make sure to verify whether the transaction request is legitimate (i.e. was there a motion at a board or executive meeting, is it in the budget, is there any history of paying similar amounts. If not, check with someone else in the organization)
• do not react to any unusual urgent requests
• make sure that you have a 2 signature requirement on your bank accounts (so that the bank cannot complete a wire transfer if only 1 person requests it)
For more information on wire fraud scam, and other examples of scams, or to report a scam, go to Scams and Fraud - Royal Canadian Mounted Police