West Region Headquarters of the Ontario Provincial Police (OPP) is alerting businesses across southwestern Ontario following an investigation by the Oxford OPP.
A Spear Phishing fraud was reported to police on February 20, by an Ingersoll business after being defrauded of almost $2,000. An individual impersonating a safety and fire inspector demanding advanced payment for supposed inspection-related supplies.
The fraudster contacted an employee directly, claimed that urgent payment was required, and instructed the employee not to notify their manager. The individual then sent QR codes linked to cryptocurrency wallet addresses and directed the employee to a local business with a cryptocurrency ATM. The employee deposited the funds, believing the request to be legitimate.
Indicators of Inspection Fraud:
- Unannounced Visits: While some inspections are unannounced, legitimate inspectors almost always carry proper photo ID and can specify the exact legislation under which conducting the inspections.
- Immediate Payment Demands: Real health and safety inspectors do not collect cash or credit card payments on the spot, or demand payment by cryptocurrency.
- Threats of Immediate Closure: Scammers use fear to push for payment, claiming they will shut down the business if money is not paid immediately.
- Requests for Personal/Financial Information: Authentic inspectors will not ask for sensitive, private information over the phone or in an initial meeting.
How to Protect Your Business:
- Verify Credentials: Ask for identification and contact the local regulatory agency (e.g. local Public Health unit, Fire Department) to confirm the inspector is authorized.
- Never Pay on the Spot: Do not provide cryptocurrency payment, credit card numbers or cash to individuals claiming to be inspectors.
- Train Employees: Ensure staff know to refer ‘inspectors’ to a manager and to never allow unknown individuals into private areas of the business.
If you or someone you know has been a victim of fraud contact your local police service and Report fraud and cybercrime (https://antifraudcentre-centreantifraude.ca/report-signalez-eng.htm) to the Canadian Anti-Fraud Centre (CAFC).