Data security | HR departments targeted in £600k scam

The transfer of any money or sensitive information to an unintended third party is an HR nightmare. If confidential data regarding the company’s financial status gets into the wrong hands, it could compromise employee welfare and damage corporate reputation.

Yet, the Canadian city of Saskatoon has been the victim of a massive scam targeted at HR and finance departments, according to reports released by Global News. A media conference held last week by City Manager Jeff Jorgenson confirmed that a currently unknown fraudster had targeted HR and finance departments whilst electronically impersonating the chief financial officer of a ‘prominent’ local construction company.

The fraudster then convinced HR and financial departments that the financial details of the company had changed, meaning that upon the next payment, compensation in excess of £600,000 ($1.04million) was transferred to a criminally-owned bank account.

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“The city complied [with the request] and as a result, the next [contract] payment intended to go to that company, approximately £600,000 ($1.04million), was transferred to the fraudster’s bank account,” Jorgenson told the press.