Trusting senior couple fall prey to ‘church peer’ fraud, lose third of retirement funds

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This article was published 03/10/2024 (735 days ago), so information in it may no longer be current.

A fraudster posing as a friend from church bilked an elderly Winnipeg couple out of more than one-third of their life’s savings this month.

Now, Henry and Mary Braun fear their retirement could be in jeopardy, and they are warning others not to fall victim to the same fraud.

“When it happened, the looks on their faces were unlike anything I’d ever seen before,” said their son Ryan Braun, who spoke to the Free Press on his parents’ behalf.

“(The fraudster) used their faith against them…. To see them defeated like that, it was quite jarring.”

“(The fraudster) used their faith against them…. To see them defeated like that, it was quite jarring.”–Ryan Braun

It’s the latest report of Manitobans being victimized in a growing list of scams targeting seniors.

The couple, who are both in their 70s and just a few years into retirement were contacted on Facebook by someone posing as a trusted and respected peer from their church saying they had learned of a new, tax-free federal grant supplying up to $150,000 for retired seniors.

The scammer described the money as “completely life-changing” and said the couple might be eligible, Ryan Braun said.

The couple was connected with another person pretending to be a Canadian government employee who told them they could receive the grant, but would have to pay the “processing fees” using Apple product gift cards, he said.

Between Sept. 6 and Sept. 17, they were instructed to visit different stores throughout Winnipeg and buy gift cards. They were then told to take photos of the cards’ serial numbers and send them to the government contact, he said.

Mary Braun realized something was wrong, but not before the scam artists made off with $32,700.

It was a devastating loss for the couple, who immigrated from Paraguay more than four decades ago, carving out a better life for themselves and raising three children, their son said.

“Getting to retirement was an uphill battle for them, so when they finally got there it was a huge accomplishment,” he said, adding his mother worked as a cook and his father was employed by manufacturing company.

The crime was reported to police and the couple recovered about $700, but the remaining funds will likely never be returned. Police said the chances of locating and prosecuting those responsible is low.

The Winnipeg Police Service received 4,851 reports of fraud in 2023, up 15 per cent over 2022. The clearance rate for those crimes was just six per cent, according to the annual statistical report.

The shame of being fooled nearly compelled the Brauns to remain quiet about being victimized, their son said.

“Just to have this guilt that was hanging over their heads. They felt like they were the ones to blame,” he said. “There are a lot of smart scammers out there and thieves that will play you.

“The only fault my parents had is that they were too trusting. That’s what breaks my heart.”

“Just to have this guilt that was hanging over their heads. They felt like they were the ones to blame.”–Ryan Braun

The Brauns join nearly 16,000 other Canadians who have lost a collective $284 million this year in various scams, according to Canadian Anti-Fraud Centre data collected between Jan. 1 and June 30.

“They’ve suffered a really serious financial loss and, at that stage of life, it is incredibly difficult, if not impossible, to recover,” said Vanessa Iafallo, founder of Anti-Fraud Intelligence Consulting in Halifax.

“I can imagine how devastated and upset and afraid they might be feeling.”

Iafallo, who works with victims, said sophisticated and targeted scams are increasingly common, with criminals researching their victims online and exploiting their interests, beliefs or relationships.

“This is a form of organized crime,” she said. “This is a concerted, professional effort to defraud people.”

She urged people to remain vigilant and educate themselves, and their loved ones, about the risks.

Ryan Braun said it’s something he wished he had done.

“My parents, because English is their second language, they didn’t really know about this kind of stuff and — unfortunately — we, as their kids, never talked to them about this. That is one of my biggest regrets,” he said.

“My parents, because English is their second language, they didn’t really know about this kind of stuff and — unfortunately — we, as their kids, never talked to them about this. That is one of my biggest regrets.”–Ryan Braun

“If someone is telling you about this great grant that you’re eligible for, make sure you talk to family members and make sure this is legitimate. If they say don’t talk to family members, that is the biggest red flag.”

He has organized an online fundraiser to help his parents recover their losses. As of Thursday afternoon, it had generated more than $10,000 toward its $32,000 goal.

His parents’ story has resonated with people around the world, and donors from as far as Slovakia and Switzerland have contributed, he said.

tyler.searle@freepres.mb.ca

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Tyler Searle
Reporter

Tyler Searle is a multimedia producer who writes for the Free Press’s city desk. A graduate of Red River College Polytechnic’s creative communications program, he wrote for the Stonewall Teulon Tribune, Selkirk Record and Express Weekly News before joining the paper in 2022. Read more about Tyler.

Every piece of reporting Tyler produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press‘s tradition, since 1872, of producing reliable independent journalism. Read more about Free Press’s history and mandate, and learn how our newsroom operates.