Hundreds of people defrauded in Toronto ‘taxi scam,’ police say

Toronto police say hundreds of people were defrauded out of more than half a million dollars as part of a large-scale “taxi scam” in the city.

Det. David Coffey told reporters Thursday that 11 people have now been arrested following a 10-month fraud investigation, dubbed Project Fare.

At a news conference at Toronto police headquarters, Coffey said investigators uncovered a “criminal network” that was operating a well-known scheme where suspects pose as taxi drivers and ask customers to pay for the ride using a credit or debit card.

“During the transaction, the suspects discreetly swapped the victim’s card with a card that looked like theirs,” Coffey said.

“The real card and their pin is then passed on to accomplices. These fraudsters used the stolen cards and pins to withdraw funds from ATMS, deposit fraudulent cheques to artificially inflate account balances and make high-value purchases, including electronics, gift cards, and luxury clothing.”

In total, the suspects are facing a combined 108 charges, the detective added.

Coffey noted that while this scheme is not a new phenomenon in the city, this particular investigation began in July 2024 after police received multiple reports from members of the public who had been victims of the scam.

Over the course of the investigation, police identified more than 300 victims and Coffey said detectives believe there are more who have not yet come forward.

The suspects, police allege, defrauded victims out more than $500,000. Coffey said some individual victims lost thousands of dollars before they discovered the fraud. All of the victims, Coffey said, were reimbursed by their respective financial institutions.

Three search warrants were executed in connection with the probe on May 21. During the searches, police seized multiple handheld credit and debit terminals, high-end luxury clothing and jewelry, computers, mobile phones, artwork, and various credit and debit cards, he said.

Two suspects remain outstanding, Coffey said, and investigators are also looking to speak to a female who police believe may have information about one of the suspects that has not yet been apprehended.

Coffey was quick to note that the investigation is “not an indictment of the legitimate taxi industry.”

“The individuals involved in this scheme deliberately deceived their victims into believing that they were legitimate taxi drivers,” he said.

“Licensed professional taxi operators across Toronto continue to provide an essential transportation service for many residents in our city.”

He said the perpetrators went to great lengths to make the vehicles they were driving resembled legitimate taxis, noting that some of the vehicles were previously used as real taxis.

Coffey said the suspects targeted areas often frequented by tourists, particularly in the evenings as people exited shows in the theatre district or came out of bars in the city’s King West neighbourhood.

“They are looking for particular victims that they think they can dupe,” Coffey said.

“These people know when to hit. They know when there is going to be a surplus of potential customers.”

He said members of the public should remain “vigilant” when flagging down a cab in the city.

“Remember the legitimate taxi drivers will never refuse cash, will not take your card out of your sight, nor will they ever ask for your PIN,” Coffey said.

“If something doesn’t feel right, trust your instincts, refuse a transaction and report it.”