Here’s another cautionary story from the Upper Ottawa Valley OPP. Officers are investigating a spear phishing fraud last week (Feb 17), when a Pembroke business was scammed for almost two thousand dollars. In this case, the scammer was posing as a fire/safety inspector, who asked an employee at the business for an advance payment on supplies that were needed to conduct a safety and fire extinguisher inspection in the near future. The employee was sent a text message with QR codes for cryptocurrency wallet addresses and they were sent to a local business that hosts a cryptocurrency ATM machine. They were also asked not to tell their manager. The employee did as asked and deposited the funds into the machine using the QR code. According to the OPP, this is the third similar incident targeting Eastern Ontario businesses since early January.
Warning Signs 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 to the Canadian Anti-Fraud Centre (CAFC).
Written by: Cindy Clyne with files from OPP
