Police in Steinbach, Manitoba, are cautioning the public about overpayment scams following a recent incident where a scammer sent a fake donation check to a charity, falsely claimed an overpayment, and requested a refund of thousands of dollars. Michelle Neufeld, president of Steinbach and Area Animal Rescue, revealed that the organization narrowly escaped falling victim to such a scam last spring.
The scam unfolded when an individual identifying as “Kevin Vance Owens” contacted the rescue via email inquiring about making a substantial donation by check. Subsequently, a check for thousands of dollars arrived, which Neufeld deposited. The scammer, posing as Kevin, then alleged that an error led to sending $4,000 instead of the intended $2,000, with the surplus meant for another cause. Pressuring the charity to return half the amount, the scammer also insisted on receiving a tax receipt.
Upon investigating the request to refund the excess funds, the charity discovered the check was fraudulent, preventing any monetary loss. Neufeld shared that despite not succumbing to the scam, the charity had briefly considered acknowledging the scammer on a sponsorship plaque as a gold-level donor due to the purported $4,000 donation.
Following this incident, the charity plans to implement a policy of ensuring check clearance before issuing tax receipts. Additionally, Steinbach RCMP Staff Sgt. Mike Maxwell highlighted the rising trend of various scams, emphasizing the importance of vigilance against fraudulent tactics aimed at pressuring victims into hasty decisions. Scammers may employ different communication channels such as phone calls, emails, or online platforms and may request payments through unconventional means like prepaid cards or cryptocurrency.
In a separate incident, Earl Funk, mayor of Steinbach and owner of Earl’s Meat Market, disclosed a cyber scam that led to the loss of thousands of dollars for his business. Funk recounted how a deceptive email, purportedly from him, instructed the bookkeeper to electronically transfer funds to a supplier instead of using traditional checks. Despite managing to halt two of the payments, the business incurred a $3,000 loss due to the initial transaction before taking corrective measures to enhance payment approval protocols under their bookkeeper’s oversight.
Expressing dismay over the violation caused by the cybercrime, Funk stressed the importance of heightened security measures to prevent future incidents. The bookkeeper is actively assisting in mitigating the financial impact on the business and implementing stringent approval procedures involving Funk and his wife for all outgoing payments.
Both incidents underscore the critical need for organizations and individuals to exercise caution and verify suspicious transactions before taking any actions, as advised by law enforcement authorities.