MFDA dealers targeted by phishing scam

Mutual fund dealers are being targeted by a new phishing scam, the Mutual Fund Dealers Association of Canada (MFDA) warned Tuesday.

In a bulletin, the self-regulatory organization (SRO) says it has received reports of dealers receiving suspicious emails from a file transfer protocol (FTP) site called “filestofriends.com” that claim to contain a file sent by the MFDA.

These messages aren’t legitimate, the MFDA warns, and dealers shouldn’t open the attachments or click on any links. “The email references the ‘Mutual Fund Dealers Association of Canada, February Review’ and includes a purported PDF document titled MFDA.pdf,” the notice says.

It also points to red flags in the emails indicating possible fraud, including the use of an email domain, “mfdaa.ca,” that isn’t legitimate, and a sense of urgency. In addition, the MFDA doesn’t use the Files to Friends FTP service, the SRO says.

The bulletin warns that phishing scams are attempts to “obtain private personal or financial information by asking that you provide it in a reply email, by clicking on a link to a website that imitates a legitimate website or by opening an attachment.” It says members that receive suspicious emails from an unknown source should use caution before replying or opening links or attachments.

Phishing attacks are among the most prevalent cybersecurity issues reported by firms. In 2017 the Canadian Securities Administrators issued cybersecurity guidance, which noted that an industry review found that 43% of firms have faced phishing incidents.

Regulators have also warned firms about efforts to impersonate regulators through email, social media and other channels, as part of identity theft scams, advance fee frauds and other schemes.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.