Nearly 600 Manitobans scammed out of $36 million this year — so far

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This article was published 14/10/2024 (371 days ago), so information in it may no longer be current.

Peter Squire was training his successor as he prepared to retire when a person, claiming to be with the Bank of Montreal in Toronto, called and encouraged him to invest in government bonds.

But the man was a fraudster.

Within weeks, during the last months of 2022, Squire transferred his life savings of $650,000 to the fraudster, money he likely will never see again.

“I thought I was dealing with someone legitimate,” said Squire.

“He was really good… he didn’t give me a hard sell. He said I will send you a proposal. It was enticing enough that I would look at it.”

It’s why Squire feels for the latest victims of what’s known to police investigators as investment scams.

The Canadian Anti-Fraud Centre has reported that from Jan. 1 to Sept. 30 of this year, 115 Manitobans lost $6.3 million in investment scams. That compares to a $3.5-million loss by 92 victims in 2023.

“In an age where communication has gone digital, scammers have found new ways to exploit vulnerable individuals, particularly seniors, by preying on their trust through various social media platforms,” said Nancy Cahill, a spokesperson for the centre.

Cahill said many of the scams they record involve fraudsters who reached out to victims through social media accounts.

“They pose as someone trustworthy, sometimes even hijacking real profiles of family members or friends,” she said.

“The fraudster will offer the victim an opportunity to receive a grant. To make the offer seem legitimate, the scammer might use terms as ‘no strings attached’ or ‘for a small processing fee’ and sometimes uses the government to make it appear legitimate.”

Cahill said the unsuspecting victim will be told in order to secure the grant, they have to buy Amazon, Google, or ITunes gift cards and then give them the number on the back of the card through a message or over the telephone.

Once the gift card is sent, the scammer disappears.

“The victim is left with nothing but a financial loss, not to mention the emotional distress this can cause to a senior,” said Cahill. “As soon as the fraudster obtains the number on the back of the gift card, it is redeemed, which makes it impossible to recover the stolen funds.”

In the first nine months of this year, 599 Manitobans were defrauded of more than $36.3 million through various scams.

In 2023, 651 Manitobans were bilked out of more than $8.8 million in total.

In Squire’s case, he hopes law enforcement can retrieve his money, and he is fighting to help others avoid being defrauded. He has created a blog (novaultnofault.com) where he has issued a call to action that asks the federal government to bring in legislation to do “much more to protect our vulnerable and targeted seniors from being defrauded.”

“Seniors, in particular, are specifically targeted online, and in their homes, and it is no wonder why many are afraid to answer the phone for fear that it may be a fraud attempt.”

Squire said Canada should follow the example of the United Kingdom, which has 50 measures in its fraud strategy, including a ban on cold calls relating to financial products and ways to delay the wiring of money if employees of a financial institution believe it is suspicious or unusual.

“(Banks and credit unions) will always say we can’t be a detective in every case, but they don’t have to,” he said. “I was in a bank once in 10 years. You should be able to spend five minutes with me after I’ve given you money for 10 years.

“They should be obligated to spend some time with you.”

Last month, lawyers for Squire filed a lawsuit against Access Credit Union and the Royal Bank of Canada over allegations of negligence. No statement of defence from either financial institution has been filed.

kevin.rollason@freepress.mb.ca