COVID-19 Related Fraud

Date: May 4, 2020

Classification: UNCLASSIFIED

Branch/Agency: RCMP

Issue:

On May 1, 2020, a CBC report revealed that Canadians have lost approximately $1.2M in COVID-19 fraud scams. The article outlined the nature and extent of the different fraud scams, and the Canadian Anti-Fraud Centre’s (CAFC) role in combatting this type of criminality.

Proposed Response:

Background:

On May 1, 2020, a CBC report revealed that Canadians have lost approximately $1.2M in COVID-19 fraud scams. The article outlined the nature and extent of the different fraud scams (e.g., phishing, merchandise, charity), and the CAFC’s role in combatting this type of criminality.

The CAFC is a dedicated center that collects information on mass marketing fraud and other scams impacting Canadians and disseminates that information to law enforcement agencies, private industry and the Canadian public. The CAFC commits to providing timely, accurate, and useful information to assist citizens, businesses, law enforcement, and governments in Canada and around the world.

Criminals have seized the opportunity to exploit uncertainty around the COVID-19 crisis by quickly adapting their operations and well-known fraud schemes to target individuals, businesses, corporations, and public organizations. This includes adapting various types of online fraud schemes. For instance, criminals have used the COVID-19 crisis to carry out a variety of social engineering attacks, such as phishing messages through spam campaigns and more targeted attempts such as business email compromise attacks and will continue to target an increasing number of victims and businesses to exploit fear, uncertainty, misinformation, and anxiety surrounding this global health pandemic.

As of May 4, 2020, the CAFC has received 793 reports linked to the COVID-19 crisis, with an estimated total dollar loss of approximately $1,207,258.99. The CAFC continues to see an increase in the number of online frauds related to the COVID-19 crisis. In particular, many types of scams are reported, including: merchandise, phishing, charity, survey, extortion, employment/financial aid, inheritance, emergency relief, and romance. Many of these scams cross provincial and international boundaries with a nexus to transnational organized crime (OC) groups. These OC groups will exploit any opportunity that creates vulnerabilities in the Canadian public as well as the integrity of Canadian institutions.

To address this threat, RCMP resources will be in regular contact with law enforcement and private partners domestically and internationally to detect and deter OC activity. We can expect the emergence of new or adapted online fraud schemes with the potential of impacting individuals, businesses and the public sector as there is a greater chance for criminals to shift their traditional activities to online fraud in order to maintain or increase their profit, which has been reduced by isolation and travel restrictions. Increased anxiety and fear due to uncertainty around COVID-19 related health and economic risks creates vulnerability to exploitation by online fraud.

Although the CAFC is experiencing an increased volume of reports surrounding online fraud related to the COVID-19 crisis, it has the capacity to respond effectively based upon the current threat environment. The capacity will be assessed by the CAFC to ensure resources are deployed toward targeting the highest threats.

Contacts:

Prepared by: Sean McGillis, A/Executive Director, Federal Policing Strategic Direction, 613-843-5914

Approved by: Michael Duheme, Deputy Commissioner, Federal Policing, 613-843-6866

Date modified: