Police in Steinbach, Manitoba, have issued a cautionary alert regarding overpayment scams following a charity’s encounter with a deceitful donor who sent a fake donation check, alleged an erroneous excess payment, and demanded a refund of thousands of dollars.
Michelle Neufeld, president of the Steinbach and Area Animal Rescue, disclosed that the organization narrowly evaded falling prey to an overpayment fraud scheme last spring. An individual identifying as “Kevin Vance Owens” initiated contact via email inquiring about the donation procedure in April, expressing a desire to contribute a substantial sum via check.
After Neufeld received and deposited the check, “Kevin” subsequently claimed that his assistant mistakenly sent a $4,000 check instead of the intended $2,000, stating that the surplus $2,000 was intended for another entity. Insisting on reimbursement of half the amount, he also pressed for a tax receipt.
Upon investigating the situation further, the charity uncovered the check’s counterfeit nature. Neufeld emphasized the importance of verifying such transactions before any refunds are made, highlighting their fortunate avoidance of financial loss in this instance.
Although the animal rescue dodged financial harm, Neufeld shared that they included the scammer’s name on a sponsorship plaque as a potential gold-level sponsor due to the $4,000 donation size, underscoring the significant impact such incidents can have on charitable organizations.
Looking ahead, Neufeld affirmed that the charity will adopt a policy of awaiting check clearance before issuing tax receipts, a preventive measure against potential scams. Steinbach RCMP Staff Sgt. Mike Maxwell noted an uptick in scam reports, including overpayment schemes, cautioning the public to remain vigilant.
Maxwell advised individuals to exercise caution against scammers creating false urgency to expedite decisions, utilizing various communication channels to solicit payments, including unconventional methods like prepaid cards and cryptocurrency. In the event of a suspected scam, he advised individuals to contact authorities and financial institutions promptly.
In a separate incident, Earl Funk, the mayor of Steinbach and proprietor of Earl’s Meat Market, recounted a recent cyber scam that cost his business thousands of dollars. Funk detailed how an email purportedly from him requested an electronic payment to a supplier in lieu of the usual check payment method, resulting in an unauthorized transaction of $8,300.
Despite managing to halt two payments, the business incurred a $3,000 loss, prompting Funk to enhance payment protocols, mandating approval from himself or his spouse before funds are disbursed. Funk expressed a sense of violation and emphasized the importance of vigilance against cyber threats, emphasizing the implementation of internal checks to prevent future incidents.