Ontario business owner warns others about 'cheque washing' scam after $10K stolen

Scam snatches Ont. man’s $10K to CRA An Ontario business owner’s $10,000 cheque for the CRA was intercepted by a scammer.

An Ontario man said a cheque he sent the Canada Revenue Agency (CRA) worth more than $10,000 for his maple syrup company was stolen in the mail.

“Since this has happened it's been a bit of a nightmare for us,” said Jordan Ender of Innisfil, Ont.

Ender runs a small family business making organic maple syrup and earlier this year he had to settle his tax bill with the CRA and sent the agency a cheque for $10,800.

"I realized that the cheque was intercepted in the mail at some point and altered and deposited into another account," said Ender, adding, “the cheque was deposited, withdrawn and the account closed at the same time, under what appears to be a fake name.”

This new scam is called "cheque washing" where criminals steal cheques from the mail and alter names and amounts.

Ender thought his bank would reimburse the funds, but when he contacted Royal Bank of Canada (RBC) he was told he had missed an important deadline on reporting the fraud.

"The answer the bank came back with is this cheque was spotted in 54 days and you have to notify us within 45 days," said Ender.

Ender said losing the money could cost him his business and said he still owes the CRA for his outstanding tax bill.

“$10,800 was a lot of money for us on top of that we have $1,500 in penalties from CRA for non-payment,” said Ender.

CTV News reached out to RBC and a spokesperson said, “We recognize that any time a client is impacted by fraud or scams, it can be a difficult and stressful situation for them. While we cannot comment on the specifics of this situation due to client privacy, we can advise that we take this matter seriously and are communicating with our client directly to resolve their concerns.”

“We encourage clients to speak to us if they believe they have been impacted by fraud or scams as we review each instance on a case-by-case basis. Clients should contact us by calling the number on the back of their client card or by reaching out to their local branch.”

CTV News also reached out to Canada Post and a spokesperson said, “Canadians across the country rely on Canada Post for the safe delivery of their mail. It’s a responsibility we take very seriously. Unfortunately, our Customer Service and Security and Investigation teams weren’t made aware of this situation in order to look further into this incident.”

“Customers who believe that mail has been lost or stolen, or if fraud is involved, should contact their local police service and our Customer Service Department online at canadapost.ca/support or by telephone at 1-866-607-6301 (TTY: 1-800-267-2797). Customers concerned about identity fraud should contact the Canadian Anti-Fraud Centre at 1-888-495-8501.”

“When it comes to sending money, we recommend using MoneyGram, money orders, money transfers, etc. rather than sending cash through the mail. We recommend when sending cheques with large amounts, to bring them to the post office and sending them using one of our traceable products as opposed to regular mail.”

After CTV News contacted RBC, Ender said the bank apologized to him and as a goodwill gesture agreed to return the $10,800 to his bank account, which was great news for him.

“This has been a big relief for my wife and my whole family. It's been a big relief for all of us," said Ender.

The use of paper cheques has been declining for decades, but cheque fraud is on the rise. In the United States the Financial Crimes Enforcement Network found cheque fraud cases almost doubled to 680,000 cases in 2022 from 350,000 cases in 2021.

It’s advisable to always monitor your bank accounts and report any suspicious activity to your bank right away.