Hacker has funds sent to wrong bank account
Nova Scotia’s economic development agency has fallen victim to a cyber fraud worth more than half a million dollars following a hacking of the email of one of its workers.
The incident happened in May, when Invest Nova Scotia transferred roughly $573,000 to a bank account falsely portrayed as belonging to Sandpiper Ventures.
On May 16, Invest NS received a request from the partner for an installment payment relating to a routine, ongoing investment transaction, reported Betakit.
Invest Nova Scotia and the partner – Sandpiper Ventures – are parties to an agreement whereby Invest Nova Scotia is committed to making capital contributions, and the partner is entitled to making capital calls from Invest Nova Scotia, according to the Halifax Examiner.
On May 22, Invest NS received another email that appeared to be from the same contact person but with new banking instructions for an account at RBC, according to Betakit.
The agency confirmed the details from another email that appeared to be from another contact person within Sandpiper Ventures, according to the report.
The following day, Invest NS sent funds intended for the partner, by electronic funds transfer (EFT) to a Royal Bank of Canada (RBC) account.
It was on June 6 that Invest NS found that the funds had been sent to the RBC account belonging to a third party, not Sandpiper Ventures.
The funds remain with RBC, but the bank advised Invest NS that it required a court order to return the funds, according to the Examiner.
In June, a woman in Ontario pleaded guilty to defrauding and stealing from three consecutive employers of hers.
Invest NS taps Justice Department
The incident happened as a result of the hacking of the email of Ferdinand Makani, a controller at Invest NS.
Invest NS is now working with the Department of Justice Canada on the case, and has filed a court application as part of a civil process to “recoup the funds from the Royal Bank of Canada (RBC) that were transferred as a result of cyber fraud,” according to Betakit.
Halifax Regional Police are also investigating the incident, according to the report.
