Project OCTAVIA (CRA Scam)
Classification: UNCLASSIFIED
Branch/Agency: RCMP
Proposed Response:
- As reported in the media, Project OCTAVIA was an investigation into a telemarketing tax scam - better known as the “CRA scam”.
- These types of complex fraud schemes are a global problem and the Government of Canada is squarely focused on combatting them.
- In Canada, combatting fraud is a shared responsibility among law enforcement agencies, governments and the private sector.
- The Canadian Anti-Fraud Centre 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. Reporting by members of the public to Canadian Anti-Fraud Centre played a key role in the success of Project OCTAVIA.
- The RCMP continues to work with domestic and foreign partners to combat financial crimes that are targeting Canadians.
Background:
In October of 2018, the RCMP Greater Toronto Area Financial Crime section commenced an investigation, named Project OCTAVIA. The focus of the investigation was a telemarketing tax scam - better known as the CRA scam.
The scam, which operates out of India, involves callers identifying themselves as representatives from the CRA, RCMP and other Government of Canada agencies and then intimidating victims into paying non-existent fines or taxes. The criminals behind the scam have been targeting the Canadian public since 2014, and despite a number of police raids on illegal call centres in India, Canadians continue to be victimized.
On February 12th, 2020 RCMP investigators arrested and charged two (2) people in connection to various transnational scams, including the CRA scam. A Canada-wide arrest warrant has been issued for a third suspect who is a foreign national.
Highlighting the complex, borderless nature of modern-day fraud investigations, RCMP investigators worked with law enforcement agencies across Canada; other Federal agency partners including the CRA, Canada Border Services Agency, and FINTRAC; and foreign authorities including the Indian Central Bureau of Investigations and US authorities based in India.
Between 2014 and 2019, the CRA scam has resulted in cumulative losses totalling over $16.8 million dollars. However, the efforts of the RCMP in combatting this scam have had an impact. In 2018, Canadians lost $6.4M to the scam, while in 2019 reported losses to the CRA scam were down to $1.4M. Project OCTAVIA efforts to date have included the takedown of 39 illegal call centres in Noida and New Delhi areas of India and enforcement activities here in Canada (arrests and charges), as well as a robust public awareness and prevention campaign.
This public awareness campaign was undertaken by the RCMP through the Canadian Anti-Fraud Centre (CAFC) in concurrence with a similar initiative by the CRA. The CAFC routinely issues educational bulletins, provides scam alerts and has developed partnerships with financial institutions, telephone companies, and courier companies. Since 2015, both the CAFC and the CRA have released numerous bulletins and other public relations documentation to inform Canadians of this scam.
The CAFC is a dedicated centre 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.
The CAFC, in conjunction with private sector partners, targets the tools of scammers. In the case of the CRA scam, telephone numbers linked to fraud complaints are shared with the appropriate service provider, which can terminate the account used by scammers. Similarly, email addresses, bank accounts, and merchant information are also shared with the appropriate partners to alert them about fraudulent activities.
Contacts:
Prepared by: Sean McGillis, A/Executive Director, Federal Policing Strategic Direction, 613-843-6866
Approved by: Mike Duheme, Deputy Commissioner, Federal Policing, 613-843-6866
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