PSA: beware of e-transfer "autodeposit" when sending to strangers

[felixthecat]

For those who think they know how Interac e-transfer works, make sure you are familiar with the recent changes.
There might be more e-transfer scams this year if people are caught off guard.

For many years, the following used to be a safer method when paying for services with e-transfer:
- Send money in advance but do not share the security answer;
- Once there and ready to receive the services, tell the security answer so that the provider can deposit the transfer.

This precaution WILL NOT work any longer if the recepient has the new "autodeposit" feature enabled.
From interac site:

The Autodeposit feature allows you to have money sent via Interac e-Transfer automatically deposited directly into your bank account, without having to answer a security question.

The bank on the sender side should indicate that the security question won't be asked, but this is being new feature and all, not sure if all the banks have it done properly.
It may be better not to use e-transfers at all unless dealing with a well known established contact.

 

[WandErection]

That's a really good point.. Thx for pointing that out. I've also seen a lot more e-transfer offers in the hobby, so it's good to be aware of this.