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Mass Marketing Fraud: Police Conduct Searches in Businesses Providing Money Transfer Services
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Montréal, Tuesday, March 24, 2009 – Today, in Montréal, investigators of the Centre of Operations Linked to Telemarketing Fraud (COLT) are conducting a major police operation aimed at disrupting an international mass marketing fraud ring. A total of sixteen searches are carried out in money transfer outlets in the West end of Montréal as part of an ongoing investigation. The objective of COLT investigators is to quickly end fraudulent activity and protect the interests of potential victims.
The searches were planned as a result of information received from persons claiming to have been victimized by a mass marketing fraud ring allegedly using sixteen MoneyGram and Western Union outlets in the Montréal area to receive money from their victims.
Over 1,050 persons, mainly seniors, filed complaints at the end of January 2009. They suffered losses of approximately $3.5 million. In nearly 80% of the cases, the Canadian and American victims met said they had fallen prey to the grandson scam.
In this scheme, the fraudsters deceive their victim by posing as their grandson and pretending to be in financial trouble in a foreign country. The fraudster asks the “grand-parent” to send him money via a money transfer outlet saying that he will pay it back upon his return. One person in fifteen is duped by this scheme. The investigation also revealed that the ring used the “lottery” scam and the “mystery shopper” scam.
The searches conducted in the course of the investigation will provide additional evidence that could lead to charges against the leaders of this criminal ring. The subjects apprehended during the searches will be questioned and could face charges. The investigation is still ongoing.
As part of fraud prevention month, COLT partners remind the public that mass marketing fraud is a serious and even violent crime for the victims. To protect themselves people are reminded of the importance of being aware and keeping informed of the various scams used by criminals.
Essentially, all mass marketing scams require victims to send money in the form of a certified cheque, money order or money transfer to receive a prize, a product or a service. In this case, the fraudsters take advantage of the kindness and sensibility of the victims.
COLT partners, which includes the Royal Canadian Mounted Police, Sûreté du Québec, Service de police de la Ville de Montréal, Canada Competition Bureau – Québec Region, Canada Border Services Agency, as well as American partners such as the US Homeland Security (ICE), US Postal Service, Federal Trade Commission and Federal Bureau of Investigation, invite the Canadian public to report any information on the existence of a mass marketing fraud ring. All criminal intelligence information could help us stop criminal organizations involved in this type of crime. The public can contact the COLT team at 514-939-8304 or the Canadian Anti-Fraud Centre at 1-888-495-8501.
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For information:
Royal Canadian Mounted Police
Communications Office
514 939-8308
