Police in Steinbach, Manitoba, are cautioning the public about overpayment scams following an incident where a scammer sent a fake donation check to a charity, alleging an accidental overpayment and requesting a refund of thousands of dollars.
Michelle Neufeld, the president of Steinbach and Area Animal Rescue, revealed that the organization almost fell prey to an overpayment scam last spring. An individual identifying as “Kevin Vance Owens” contacted the rescue via email inquiring about donating thousands of dollars by check.
After receiving and depositing the check, Kevin claimed that his assistant mistakenly sent $4,000 instead of $2,000, with the surplus meant for another organization. He insisted on receiving $2,000 back along with a tax receipt. Fortunately, the charity discovered the fraudulent nature of the check before refunding any money.
Although the animal rescue did not suffer financial losses, Neufeld mentioned that they considered adding the scammer’s name to a sponsorship plaque, as a $4,000 donation would qualify for a gold-level sponsorship. Neufeld emphasized the significance of the attempted scam, stating that the sum was substantial for their organization.
Looking ahead, Neufeld stated that the charity would implement a policy of verifying check clearance before issuing tax receipts. Steinbach RCMP Staff Sgt. Mike Maxwell highlighted the rise in scam reports, including overpayment schemes, advising individuals to remain cautious and avoid making hasty decisions under pressure from fraudsters.
Earl Funk, the mayor of Steinbach and owner of Earl’s Meat Market, recounted a recent cyberscam incident where his business incurred losses due to fraudulent electronic payments. Funk’s bookkeeper received an email purportedly from Funk, instructing payment via electronic deposit to a supplier, contrary to the usual payment method by check.
The bookkeeper complied with the request, leading to unauthorized transactions totaling $8,300. Despite efforts to halt the payments, $3,000 was lost. Funk expressed feelings of violation and emphasized the ease with which cybercrimes can occur.
Funk assured that they have implemented new payment protocols requiring his approval or his wife’s before transactions are processed to prevent future incidents. The bookkeeper is assisting in mitigating the loss incurred by the business.
Both cases underscore the importance of vigilance and verification when dealing with financial transactions to prevent falling victim to scams. Authorities urge individuals to report suspected scams promptly and exercise caution when handling financial requests from unfamiliar sources.