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City of Saskatoon may get back stolen $1M after scam traced to bank accounts

Last Updated Aug 20, 2019 at 8:02 am PDT

The City of Saskatoon says it has lost $1 million after it was targeted in an online scam. Saskatoon mayor Charlie Clark speaks with media at the Legislative Building in Regina, Tuesday, April 10, 2018. THE CANADIAN PRESS/Mark Taylor
Summary

City manager Jeff Jorgenson says nearly all the money has been traced to between 10 and 15 bank accounts

The city revealed last week that someone had electronically impersonated someone from Allan Construction

SASKATOON — The City of Saskatoon may be getting back most of the $1 million it mistakenly sent an online fraudster.

City manager Jeff Jorgenson says nearly all the money has been traced to between 10 and 15 bank accounts.

He says the accounts have been frozen by court order.

The city revealed last week that someone had electronically impersonated the chief financial officer of Allan Construction, which has a contract with the city.

The culprit asked to have a payment sent to a new bank account and the city complied before realizing it was a scam.

The city contacted police and hired experts to try to recover the funds.

“This is very encouraging news,” Jorgenson told a news conference Monday.

“Although we are still in the early days, and the money has not yet been returned to the city, we will continue to work with the banks and with the Saskatoon Police Service in order to get as much of the money returned to the city as possible.”

The Canadian Press