The public is invited to be extremely vigilant
MONTRÉAL, Tuesday, December 18, 2007 – The Centre of Operations Linked to Telemarketing Fraud (COLT) specialized team seized a little over 50,000 letters and as many bogus cheques in a one-month blitz. These fraudulent letters were part of a scam aimed at defrauding American as well as Canadian citizens of their money in exchange for so-called prizes. COLT advises the public to never send money to collect an alleged prize. In Canada, it is illegal to ask for money in return for any prize.
The COLT specialized team launched its investigation after Canada Post Security and Investigation Services intercepted envelopes with forged postmarks destined for the United States.
The RCMP does not have the authority to inspect mail. However, while investigating a case of fraudulent postage, Canada Post Security and Investigation Services determined that the mail contained marketing fraud material. That is why Canada Post advised the RCMP.
The COLT team then conducted a surveillance operation between November 14 and December 14, 2007 that led to the discovery of 50,065 fraudulent letters addressed to American citizens as well as some Canadians, including Montréal residents, in an attempted fraud of nearly $195 million. No arrest has been made, or charge filed for the moment. The investigation is still ongoing.
Nevertheless, the COLT team wants to inform the public about this seizure and warn consumers against this fraud in particular, and mass marketing fraud in general which may take many forms.
The ploy
In this particular case, the fraudsters are sending letters with bogus cheques ranging from $2,000 to $5,000. These letters lead recipients to believe they have won a prize of up to $50,000 in an international promotional campaign. To collect their prize, the recipients are asked in the letter to cash the cheque and return the corresponding amount, or part of it, to pay for administration fees under some international consumer protection act. Since the recipients are given a very short delay to send the money, their financial institution does not have enough time to certify the cheque. Consumers send the money anyway, falling pray to the fraudsters. In most cases, the return addresses are postal boxes. Sometimes, the victims are asked to wire the money electronically through a money wire service. Victims can be defrauded of up to $5,000.
(Click on photo to enlarge)
Never send money
Money should never be sent to a company or a contest to claim an alleged prize. Bogus cheque scams always use the same scenario where the fraudsters ask their potential victims to deposit the cheque they send them and then return part of the money. But before the financial institution realizes that the cheque is bogus, it’s too late. When a cheque is deposited, the bank has the obligation to release the funds within a few days, so the client can access the money. However, the delay between the moment the cheque is deposited in the account and the moment the bank realizes it’s bogus is longer. This means that there is enough time to withdraw the money and forward it to the scammers before finding out that the cheque is false.
A borderless crime
Bogus cheque scams are a form of mass marketing fraud. Mass marketing per se is not illegal, but when the message being conveyed is false, when the information being provided to a client is intentionally misleading and/or when the company has absolutely no intention of holding up its end of the bargain, it becomes mass marketing fraud. Essentially, all mass marketing scams require victims to send money in the form of a certified cheque or money order to receive a prize, a product or a service.
This type of crime is growing – it knows no boundaries. Mass marketing fraud can be committed using an array of communication mediums: telephone, postal service, e-mail and the Internet. To help consumers protect themselves against this type of crime, we invite them to visit the RCMP Internet site.
A priority for the RCMP
Mass marketing fraud is a serious crime often committed by structured criminal operations. The consequences of this form of economic crime, against persons or businesses, are devastating for the victims and consumer confidence. This crime also known as "white-collar crime” constitutes one of the priorities of the RCMP which is committed to fight this form of crime including through COLT.
The Centre of Operations Linked to Telemarketing Fraud was created in 1998 and includes the Royal Canadian Mounted Police, Sûreté du Québec, City of Montréal Police Service, Canada Border Services Agency, Canada Competition Bureau (Québec Region), US Homeland Security (ICE), US Postal Service, US Federal Trade Commission and Federal Bureau of Investigation. COLT also works in collaboration with other partners including Canada Post Security and Investigation Services. COLT is one of the most efficient existing mass marketing fraud prevention and disruption programs.
COLT partners invite the Canadian public to report any information on the existence of a mass marketing fraud ring. All criminal information will help us stop criminal organizations involved in this type of crime. Victims are also invited to contact COLT at 514-939-8304 or the Canadian Anti-Fraud Centre at 1-888-495-8501.
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For information:
Communications Office
514-939-8308
