Police in Steinbach, Manitoba, are cautioning the public about overpayment scams following an incident where a scammer sent a fake donation check, alleged an accidental overpayment, and requested a refund of thousands of dollars.
The president of Steinbach and Area Animal Rescue, Michelle Neufeld, disclosed that the charity was almost a victim of an overpayment scam last spring. A person identifying as “Kevin Vance Owens” initiated contact via email inquiring about the donation process and expressed interest in donating thousands of dollars by check.
After receiving and depositing the check, Kevin claimed his assistant mistakenly sent $4,000 instead of $2,000 and insisted on getting $2,000 back, along with a tax receipt. Upon investigation, it was discovered that the check was fraudulent, preventing the charity from losing any money to the scam.
Neufeld mentioned that despite not suffering a financial loss, the charity included the scammer’s name on a sponsorship plaque as a $4,000 donation would have qualified for a gold-level sponsorship. Moving forward, the charity will ensure checks clear before issuing tax receipts as a precaution.
Steinbach RCMP Staff Sgt. Mike Maxwell emphasized the increasing reports of scams, including overpayment schemes, advising individuals to be cautious of scammers creating urgency to rush victims into making hasty decisions. Fraudsters may reach out through various channels like phone, email, or online platforms, requesting payments in unconventional forms such as prepaid cards or cryptocurrency.
In a separate incident, Earl Funk, the mayor of Steinbach and owner of Earl’s Meat Market, recounted how his business fell victim to a suspected cyber scam, resulting in a loss of thousands of dollars. An email received by the market’s bookkeeper in July purportedly from Funk requested an electronic payment for an invoice, deviating from the usual payment method of checks. Despite efforts to stop the transaction, $3,000 was lost out of a total of $8,300 sent across three transactions.
Funk expressed feeling violated by the cybercrime incident and highlighted the importance of implementing new payment protocols requiring approval from him or his wife before any payments are made. The bookkeeper is assisting in recovering the lost funds, ensuring the business is safeguarded against future scams.
Both incidents underscore the need for vigilance against scams and the importance of verifying transactions before proceeding. Authorities advise individuals caught in such situations to remain calm, contact the authorities, and consult with financial institutions before taking any actions.