A Quebec packaging manufacturer has filed a lawsuit in Manitoba alleging that fraudsters intercepted email communications and impersonated an insurance broker to redirect a $203,664.31 wire transfer to a Manitoba bank account. The claim alleges the scheme involved a subtly altered email domain and fraudulent banking instructions.

A packaging manufacturer has filed a lawsuit after allegedly losing more than $200,000 in an email impersonation scheme involving redirected payment instructions.

Pro-Pals Industries Ltd., based in Quebec, filed a statement of claim in Manitoba’s Court of King’s Bench on May 11. The company is seeking to recover $203,664.31 it says was transferred to a bank account controlled by unknown fraudsters.

According to the claim, Pro-Pals received invoices from its insurance broker on February 2, 2026. Eight days later, the company allegedly received an email that appeared to come from the same broker, but from a slightly altered domain name. The email allegedly advised that the broker’s banking information had changed and instructed the company to send payment to a new account.

The lawsuit alleges the fraudulent email used the same subject line and included copies of some of the invoices, making the request appear legitimate. The sender also allegedly claimed that the banking information already on file was intended only for international transfers.

Pro-Pals says it wired the full amount on February 13. The alleged fraud was not discovered until March 18, when the legitimate broker followed up about the unpaid invoices. The company then noticed the discrepancy in the email address and concluded it had been defrauded.

The claim alleges that the funds were directed to a CIBC account opened at a branch in Carman, Manitoba. The company says it is not yet known how the fraudsters allegedly infiltrated the email communication between the two companies.

The lawsuit seeks several orders from the court, including an order freezing the CIBC account, a tracing order, disclosure of account-opening records, and the return of any recoverable funds. It also seeks damages from the unknown defendants for fraud and fraudulent misrepresentation, as well as punitive damages.

No statement of defence has been filed, and the allegations have not been proven in court.

The case reflects a broader rise in payment redirection fraud, a form of spear phishing that often targets businesses through realistic-looking supplier or service-provider emails. Fraudsters may monitor or intercept communications, then send altered payment instructions at a point when an invoice is expected.

The Canadian Anti-Fraud Centre has warned that this type of fraud can be especially damaging for businesses because it often appears routine. Common prevention steps include independently verifying changes to payment instructions, calling known contacts using phone numbers already on file, and training employees to recognize suspicious changes in email addresses, banking details, or payment procedures.

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Originally published on Canadian Fraud News.