Halton Police Dismantle Major Telephone Fraud Operation

On February 20 and 21, 2011, Halton Regional Police detectives arrested seven people and seized currency valued in excess of $20,000 CAD in connection with a telephone fraud ring operating out of Oakville and Mississauga.

Halton investigators have determined the ring was targeting elderly victims across North America using what is commonly referred to as the “Emergency Scam” or “Grandson Scam.” The majority of victims identified by police thus far are U.S. residents living within the continental United States, although Canadians were also victimized.

During the course of the investigation, Halton detectives learned two of the accused were about to leave the country, which prompted them to act quickly. They immediately contacted the Montreal Police who detained them on behalf of Halton detectives until they could be returned to the Region to face charges.

The dollar figure losses connected to the Emergency Scam are astounding. Police estimate that since November 2010, this particular operation alone has been responsible for an estimated $3 Million in fraudulent takings. The perpetrators were making an average of 200 calls per day, successfully targeting 15 to 20 victims and defrauding them of between $2,500 to $6,000 each.

“The Emergency Scam targets seniors, one of our most vulnerable populations, and cruelly plays upon their emotions to bilk them out of thousands of dollars,” said Chief Gary Crowell of the Halton Regional Police Service. “To compound matters, it is estimated that less than five percent of victims report this crime to police, because many of them feel embarrassed that they were tricked by these criminals.”
In this scam, the fraudster telephones an elderly person and pretends to be a relative, often a grandchild. They tell the victim that they are on vacation away from home, have been arrested by police, and need money in order to be released from jail. A second person will then talk to the victim, claiming to be a lawyer or police officer and give the victim instructions on how much money to send and where the money should be sent. The scammer promises to pay the grandparent back as soon as they are out of trouble, and also pleads with the victim not to tell anyone else in the family due to embarrassment or fear of getting into further trouble with relatives. By the time the grandparent speaks to a family member about the incident, and discovers that the story is false, the money has already been picked up by the fraudsters.

“There is a tremendous amount of investigative work yet to be done to determine exact details and the extent of the fraud, but our investigators are confident they have completely shut down an organized criminal cell,” said Chief Crowell. “I commend our investigators for an exceptional job in apprehending these individuals, and appreciate the assistance of police in Montreal in detaining two of the suspects before they left the country.”

Multiple charges were laid in connection with the investigation, including Participating in a Criminal Organization, Conspiracy to Defraud the Public, Fraud Over $5000, and Impersonating A Police Officer. The accused are next scheduled to appear in Milton Court on Friday, February 25th.

The Halton Regional Police Service urges people to speak to their elderly family members in mind the following tips to avoid becoming a victim of this scam:

• If someone calls claiming to be a relative, ask them to identify themselves first – do not volunteer names or any other information.
• In some cases, the fraudster will have obtained the first name of a grandchild through a social networking site, obituary or other published information. To further verify their identity, ask them a personal question only your grandchild could answer such as the full names and dates of birth of their parents or siblings.
• Ask the caller for a call back number. This gives you time to verify their story. Be very suspicious if the caller refuses.
• Speak to another family member about the matter to confirm the facts before deciding whether or not to provide assistance.

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