A catalogue of the latest cons and scams
A young woman fell victim to threats made by a man claiming to be a police officer, who ordered her to empty her bank account or get arrested. She panicked, withdrew money and deposited it at a bitcoin ATM (iStock)
TO THE RESCUE
The Northwest Territories government was caught in a phishing scam in late 2020 when they transferred funds to a fraudster claiming to represent a vendor. The con artists created a fake website and email address, along with invoices that were submitted to the territory. Quickly realizing the scam, the government contacted the RCMP’s Financial Crimes Unit, which was able to recoup the money.
$2.7 MILLION
Lost by an electronics distributor in Quebec, after its accounts payable staff were conned by a fraudster posing as the CFO of a supplier, who arranged, via email, for the money to be wire-transferred in several instalments. In a recent ruling, a Quebec Superior Court justice determined that the company is entitled to just $50,000 from their insurance policy due to a limiting clause for social engineering fraud such as email impersonations—the first-ever legal decision in Canada on the matter.
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People were charged in Ontario as part of a private school college diploma scheme, following an OPP Anti-Rackets Branch investigation that alleges owners and employees of the Royal Institute of Science Management (RISM) in Markham, Ont., had allegedly recruited prospective students to pay for enrolment by falsely applying for the Ontario Government Second Career Funding Program, which is designed to reintegrate unemployed workers back into the workforce. Once funding was received—up to $28,000—students used the funds to pay tuition and received a diploma in exchange, all without attending any classes. The investigation revealed the fraud had been happening for six years.
“IT JUST DISAPPEARED”
A 20-year-old Halifax woman recalls thinking when she watched $14,000 vanish into an automated bitcoin machine in a local store after falling victim to a phone scam. She received a phone call from a man claiming to be a Halifax police officer, who said that her social insurance number and banking info had been stolen, and explained she had two options: Empty your back account or get arrested. Panicked, she followed the man’s instructions as she withdrew the cash and deposited the money at the bitcoin machine, staying on the line the entire time. The Government of Canada’s “Slam the Scam” campaign aims to protect Canadians from falling prey to cons like this by urging people: “Don’t be afraid to say no.”
GET SMART ABOUT FRAUD
See CPA Canada’s 2021 Fraud Study for deeper insight into how Canadians perceive scams. Also, arm yourself with information to protect yourself as fraudsters find new ways to target victims during the COVID-19 pandemic.
For a deeper dive into the world of fraud and fraud investigation, check out Uncovering Fraud: True Stories About Fraud, Fraudsters & How They Got Caught, a collection of reported cases and stories published by CPA Canada.