Around mid-September, John Armit, a detective constable with the Ontario Provincial Police’s (OPP) Anti-Rackets branch, got word of extortion emails being sent to government officials and embassy staff in Ottawa. The sender threatened to release personal information about the recipient if they didn’t pay $2,000 USD in Bitcoin. What was most disturbing about the emails is that they included the recipient’s full name, personal phone number, residential address, and—an image of their house.
“They personalize the emails so that people are in a sense of panic,” Armit says of the fraudsters. Since then, the scam has spread to ordinary Canadians and even across the border into the United States. Here’s what you need to know.
To date, the Canadian Anti-Fraud Centre (CAFC) has reported a total of 1,000 cases. But Armit warns that, on average only five to 10 per cent of people report fraud cases to the CAFC, meaning that number could be a lot higher. “The way fraudsters work is it’s law of averages,” Armit says. “You hit 1,000 people with one of these and maybe get one person that gives you a few thousand dollars.”
The scam uses many common fraudster tactics, and Armit believes they’re able to access private personal information through data breaches from multiple sources. For example, they could have gotten someone’s information from something as simple as a points program at a local grocery store.
Included in the scam emails are QR codes directing recipients to scan them and send the requested Bitcoin. “The reason why they’re asking for Bitcoin and having the QR code is you can just take that QR code to a crypto ATM, scan it in the ATM, dump your money in, and off your funds go,” Armit says.
What should you do if you receive an email like this and you’re worried about the security of your cottage property, especially if you aren’t there? Armit advises installing cameras, motion-sensor lights, and trimming back shrubbery that could allow unauthorized visitors to hide within. He adds that cottagers shouldn’t be worried, though, as there haven’t been reports of burglary tied to the scam at this time.
And if you’re concerned about data breaches through points programs, Armit says it’s best not to reuse passwords for these types of accounts, and that folks should prioritize programs that use multi-factor authentication.
Cases of fraud appear to be growing in Canada. In 2023, the CAFC reported $580 million in fraud losses—$12.5 million of that was from extortion scams like this one. Between January and September of this year, $477 million in fraud losses have been reported. “My prediction is that we’re going to exceed last year’s numbers,” Armit says.
Remember that if you receive an email of this nature involving a photo of your home or cottage, you should report it to your local police immediately. Do not click on any links or scan any QR codes in the email as this could infect your device. Be cautious of any unsolicited messages you receive over social media, and don’t send money to anyone under pressure.
If you think your personal information has been compromised, contact credit companies Equifax or TransUnion to flag your accounts. This notifies creditors to take extra steps to verify your identity before extending credit.
You can also report scams to the Canadian Anti-Fraud Centre through its online reporting system, or over the phone at 1-888-495-8501.
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