Fraudsters target clients in Manitoba

In October, four law firms in Manitoba had their email accounts compromised by phishing attacks. Once inside the firms’ computer systems and unbeknownst to the lawyers, fraudsters sent emails using the lawyers’ email addresses to clients and other parties, instructing them to transfer funds to bank accounts controlled by the fraudsters. In each case, more than $100,000 was sent to the fraudsters.

It happened in Manitoba – BC could be next.

Phishing is the #1 driver of cyber claims in BC, often leading to funds transfer fraud, ransomware attacks, and privacy breaches. Security awareness and training are your best defences against phishing.

There is no coverage under your LIF policy for this cybercrime; however, most BC firms have some limited protection for Funds Transfer Liability under the cyber insurance policy from Coalition. Should you find yourself in this situation, report immediately to Coalition and under any other cyber policy your firm may have.

What can you do to avoid these cybercrimes?

1. Inform your clients about the threat of funds transfer frauds.
2. When you provide clients with your trust account information, advise them in writing that you will not change it.
3. Ask your clients to verify all payment instructions by contacting your office directly using the telephone number in your retainer letter. They should confirm your account information before sending any funds to you or to anyone indicated in any emails purportedly sent by you.
4. Include the information above in your retainer letters.
5. Some lawyers have also included this warning in red in their signature block and as a highlight on their website.