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Fraud is becoming 'more popular crime'

By: Geoff Kirbyson

Posted: 03/18/2009 1:00 AM | Comments: 0 (including replies)

THE growing reach of tech-savvy criminals is costing everybody where it hurts -- in their wallets.

Experts told a fraud conference at Canad Inns Polo Park Tuesday that illegal activity is on the rise not only in Manitoba, but around the world in the wake of the global recession.

"Fraud is becoming a more popular crime," said Det.-Sgt. Ron Audet of the Winnipeg Police Services commercial crimes unit. "Especially in these times. People get desperate and need money, so they either steal or defraud their company to get services or things of value."

Len Terlinski, investigator at the Manitoba Securities Commission, said a recent report revealed seven per cent of gross business revenue is lost to fraud each year.

He said the Internet has enabled the criminal element from every corner of the globe to increase its range, while simultaneously reducing the chances of getting caught.

"It's so much easier to defraud people in other jurisdictions (via the Internet), which makes it more difficult to prosecute. The Internet has been a boon to fraudsters," Terlinski said. But he's encouraged by the harsher stance recently taken by the courts. "For years, the courts treated fraud like a lesser crime. Many times the victim is a large institution, which (people think) can afford the loss. But those losses are passed on to the consumer."

Garry Schmidt, associate manager of special investigations at Great-West Life Assurance, agreed. He said the public often considers fraud as a victimless crime because nobody was shot, stabbed or suffered a bodily injury when their assets were taken.

He said fraud victims are often taken advantage of after developing a level of trust with unsavory types, who usually have an intimate knowledge of their financial situation. He said it's up to consumers to do their homework to reduce the chance they'll be victimized.

Investors have to be particularly diligent, he said, when approached by financial salespeople offering opportunities that appear too good to be true. He said they should call the securities commission and the Better Business Bureau to determine if they're legitimate.

Doug Lefto, a security and investigation adviser at Manitoba Hydro, said every organization, regardless of size, is susceptible to fraud, both internally and externally. Examples at the utility range from employees using company credit cards to purchase goods for personal consumption that they claim are work-related to marijuana growers stealing power by circumventing the meter.

More than 100 investigators from organizations around the province, including Manitoba Public Insurance, Manitoba Housing, London Drugs and Canada Safeway, attended the conference, hosted by the Association of Certified Forensic Investigators of Canada.

geoff.kirbyson@freepress.mb.ca

Republished from the Winnipeg Free Press print edition March 18, 2009 B2

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