Police in Steinbach, Manitoba are cautioning individuals about overpayment scams following a charity’s encounter with a scammer who sent a fake donation check, alleged an overpayment mistake, and requested a refund. Michelle Neufeld, the president of Steinbach and Area Animal Rescue, disclosed that the charity almost fell victim to an overpayment scam last spring. An individual using the alias “Kevin Vance Owens” contacted the rescue via email in April expressing interest in donating thousands of dollars by check. Upon receiving the check and depositing it, Neufeld later received an email from Kevin claiming an accidental overpayment of $4,000 instead of the intended $2,000, requesting a refund of the excess amount.
Fortunately, the charity investigated further and discovered the check was fraudulent before returning any money. Neufeld highlighted the importance of verifying transactions before taking action to prevent falling prey to scams. While no money was lost in this instance, Neufeld mentioned that the scammer’s name was added to a sponsorship plaque, as a $4,000 donation would have qualified for a gold-level sponsorship, emphasizing the significant impact such scams can have on organizations.
Moving forward, Neufeld stated that the charity will wait for checks to clear before issuing tax receipts to prevent similar incidents. Steinbach RCMP Staff Sgt. Mike Maxwell emphasized the increasing prevalence of scams, including overpayment schemes. He advised individuals to remain vigilant and scrutinize any requests for quick payments, especially those involving unusual payment methods like prepaid cards or cryptocurrencies. Maxwell urged victims of scams to take a step back, contact authorities, and verify the legitimacy of any transactions before proceeding.
In a separate incident, Earl Funk, the mayor of Steinbach and owner of Earl’s Meat Market, revealed that his business suffered a financial loss due to a suspected cyberscam. Funk explained that his bookkeeper received an email purportedly from him, instructing payment for an invoice via electronic deposit, a departure from their usual payment method of checks. Despite efforts to halt the transactions, $3,000 was lost as a result of the scam. Funk expressed feeling violated by the intrusion and emphasized the importance of implementing stricter protocols to prevent future incidents, including requiring approval from him or his wife before authorizing payments.
Funk reassured that measures have been put in place to enhance security and prevent such incidents from reoccurring. He underscored the significance of checks and balances within the business operations to safeguard against cybercrimes. The market is taking steps to recover from the financial loss incurred and has tightened payment procedures to enhance security and prevent future fraudulent activities.