So you think you're a victim of fraud. Now what?
Police and legal experts say prevention, education is key
Ontario Provincial Police (OPP) are telling victims of fraud to become their "own detective" as cases skyrocket across the country and investigators struggle to keep up with an increasingly heavy caseload.
"I think it's always a struggle with the criminal justice system to really support the victims. We're getting better from where we were … and what I found working with victims this way, it really empowers them," said Det.-Const. John Armit with the OPP's anti-rackets branch.
Armit said every police service, and even regulatory bodies, are struggling with the volume of fraud reports landing on their desks.
Last year, Canadians lost nearly $638 million to fraud, according to the Canadian Anti-Fraud Centre. That's up from $578 million in 2023.
So if you feel you've been a victim of fraud, what are your options? Well, it's complicated.
Report it to police
Take the story of Christina MacCrimmon as an example. She alleges a man who she ended up marrying left her nearly $300,000 in debt, and she wasn't the first person to take her concerns about him to police.
Armit said victims should certainly report their concerns to police and the Canadian Anti-Fraud Centre, but also gather information and help build a package for investigators.
"You want to be able to articulate the synopsis, the chronology of what happened to give to the officers … because they need to gather that information in order to get judicial authorizations, whether it be a search warrant or a production order," Armit explained.
Det. Shaun Wahbeh with the Ottawa Police Service (OPS) said sometimes fraud investigators can't act as quickly as they want to while they wait for those types of orders, which is problematic.
"A lot of fraudsters will continue. That's their bread and butter, that's what they do for a living — they commit frauds," he said.
"We have 600 files in the queue right now ... but we're only as good as the bodies we have, we're only as good as the technology we have. A lot goes into a fraud investigation."
Take them to court
"Wilful deceit and misrepresentation" is at the heart of fraud, according to Michael Rankin, a senior partner in Gowling WLG's Ottawa office.
He said victims can also start a civil proceeding to try to get their money back, however that, too, can prove complicated and expensive.
"They've been taken by a fraudster and they're out of money. And then on top of that, they've got to consider how much they're out and whether they can afford to hire a lawyer," Rankin said. "Sometimes the view might be that that's good money after bad, and maybe it's not worth it."
Rankin said victims can also go to small claims court where plaintiffs can represent themselves, however the highest amount awarded there is $35,000.
Keep in mind, a judgment in civil or small claims court doesn't always lead to a payout, especially if the defendant has no assets.
Prevention and education
Legal experts and police agree the strongest way to fight fraud is to prevent it.
The Canadian Anti-Fraud Centre provides information on past and current scams affecting Canadians. OPP also suggests asking for letters of reference and researching a person or business online before handing over any money.
But that's not foolproof either.
Ron and Trish Calof hired a contractor based on online reviews and a reference check they're now convinced wasn't real.
They ended up paying the man more than $45,000 for a job they say was never completed. They managed to win a judgment in small claims court for breach of contract, but they haven't seen any money. (Rankin offered them pro bono advice during their claim.)
The Calofs hope others can learn from their mistakes by doing their due diligence before entering into a contract. They suggest checking online reviews from multiple sources, using only trustworthy references whenever possible, and meeting with references in person.
"As we noted in hindsight, our 'reference' was suspect. However, we thought we had gone through enough checks at this point, and this was simply a formality," Trish Calof wrote to CBC.
Fraud prevention month
March is fraud prevention month and Ottawa police are reminding people to stay alert. Here are some steps they say people can take to protect themselves.
- Avoid high-pressure sales tactics.
- Watch for red flags such as requests for payment via gift cards or bitcoin.
- Educate vulnerable friends and family members.
- Be wary of unsolicited requests.
- Never share banking information with unknown callers, email contacts or door-to-door visitors.
Police say if you suspect you've fallen victim to financial fraud you should take immediate action by freezing your bank accounts and calling TransUnion to place an alert on your credit card.
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