A new trend in crime is seeing a number of businesses across Western Canada become victims of similar high-dollar frauds in the last six months.
According to Saskatchewan and Alberta RCMP crime analysts, someone calls the business to make a large transaction using multiple credit cards to pay.
All contact is by phone and the caller asks to use several credit cards to make up the total purchase price, said the RCMP. Only after the company has shipped the items are they alerted that the credit card has been reported stolen or the true cardholder gets the charge reversed.
Police said while several of the victims have been tire and vehicle parts businesses, any type of business could be targeted in the same way.
Red flags for businesses include:
- New customers from outside the trading area asking to ship products long distances, often to another province
- Only a phone number and generic email information are provided (not a business email)
- Multiple credit cards are used and some cards may be declined but others go through
RCMP said businesses should protect themselves by being aware of potential frauds, educating their employees about fraud and by having good fraud protection policies. Business owners may also wish to discuss potential strategies with credit card companies or payment specialists to prevent such crimes.
In some cases, the police said, it appears the suspects use online platforms or other methods to recruit individuals to pick up items from the selling business, warehouse or other legitimate businesses. The individual meets the suspect in an area with no surveillance cameras, hands over the product and gets a small cash sum for their assistance. This way, the fraudster is never seen by the business making the sale and does not appear on any CCTV.
"If you see an offer like this, ask yourself if there might be stolen goods involved and use caution," RCMP said.
