Police in Steinbach, Manitoba, have issued a cautionary alert regarding overpayment scams following a charity’s encounter with a fraudulent donation scheme. The Steinbach and Area Animal Rescue president, Michelle Neufeld, revealed that the organization narrowly avoided falling victim to an overpayment scam last spring. An individual, identifying themselves as “Kevin Vance Owens,” initiated contact via email inquiring about the donation process and expressing interest in contributing thousands of dollars by cheque.
After receiving the cheque and depositing it, Neufeld was later informed by Kevin that an error had occurred, with his assistant mistakenly sending a $4,000 cheque instead of the intended $2,000, requesting a refund of the excess $2,000. Despite the insistence on returning half the amount and providing a tax receipt, the charity discovered the cheque to be counterfeit before any money was refunded.
Although the animal rescue escaped financial loss in this instance, Neufeld disclosed that they had considered acknowledging the scammer’s name on a sponsorship plaque, reflecting the potential gold-level sponsorship from the supposed $4,000 donation. Moving forward, the charity will exercise caution by verifying cheque clearance before issuing tax receipts.
Steinbach RCMP Staff Sgt. Mike Maxwell highlighted the increasing reports of scams, emphasizing the importance of vigilance against fraudsters who induce urgency to prompt hasty decisions from victims. The scams may manifest through various communication channels such as phone calls, emails, or online platforms, with requests for payments in unconventional forms like prepaid Visa cards, gift cards, or cryptocurrency.
Earl Funk, the mayor of Steinbach and owner of Earl’s Meat Market, shared a recent incident where his small business incurred substantial losses due to a suspected cyberscam. An email purportedly from Funk requested the market’s bookkeeper to make an electronic payment for an invoice, deviating from their usual cheque payment method. Despite efforts to halt the transactions upon realization, $3,000 was lost to the cybercriminals.
Expressing a sense of violation and shock at the ease of cybercrimes, Funk emphasized the implementation of new payment protocols requiring approval from himself or his spouse before transactions are processed. The bookkeeper is assisting in mitigating the financial impact of the scam, with a renewed focus on stringent checks and balances to prevent future occurrences.