Toronto police arrest 12 people, lay 102 charges in major credit card fraud scheme
Toronto police say 12 people are facing a combined 102 charges in connection with an investigation into a major credit fraud scheme.
The charges were announced Monday as police provided an update on Project Déjà Vu, a probe into what investigators described as “synthetic-identity fraud."
Det. David Coffey, of the Financial Crimes Unit, said synthetic-identity fraud is a form of financial fraud in which fictional personal information is used to open accounts at financial institutions and other businesses.
He said police initiated the investigation in October 2022 after officers were contacted by a financial institution that located several synthetic accounts. Coffey said it is believed that most of those accounts were opened by a person who previously worked on behalf of the company.
“The perpetrators of this scheme, which began in 2016, are alleged to have created more than 680 unique synthetic identities, many of which were used to apply for and open hundreds of bank accounts and credit accounts at various banks and financial institutions across Ontario,” Coffey said.
“The fraudulently obtained credit accounts were then drawn upon by way of in-store and online purchases, cash withdrawals, or electric fund transfers.”
Police have released a photo of what they say are synthetic-identity documents seized during a fraud investigation. (Toronto Police Service handout)
He said in some cases, fraudulent payments were made to the accounts to allow the perpetrators to draw from them beyond their defined limits.
Coffey said police have so far confirmed about $4 million in losses.
Twenty search warrants were carried out as part of the investigation, he added.
“Through the search warrants, TPS has also located and seized several dozen synthetic identity documents and electronic templates to create false identifications and false documents,” Coffey said.
He noted that hundreds of debit and credit cards were also seized, along with about $300,000 in Canadian and foreign currency.
“This isn’t just about fraud,” Coffey told reporters. “Accounts obtained under synthetic identities are known to facilitate other serious criminal offences including the laundering of proceeds derived from human trafficking, drug trafficking, and armed robbery, among other serious crimes.”
He said while financial institutions have their own security procedures to prevent fraud, sometimes they are not always effective.
“All financial institutions have security parameters in place in order to minimize the damages to them. The fraudsters are really smart. They are advancing with technology. The identification is very convincing,” he added. “It often does get caught at the financial institutions but it doesn’t always get caught.”
He said he believes there are more suspects and victims that police have not yet identified and the investigation is ongoing.
“We assume there are more victims just because of the number of identities,” Coffey said. “We encourage any of them to reach out to us.”
CTVNews.ca Top Stories
BREAKING Slovak interior minister says 'lone wolf' has been charged with shooting prime minister
The Slovak interior minister said Thursday that a 'lone wolf' has been charged in the shooting that seriously wounded Prime Minister Robert Fico.
There's a new workers' rights treaty in Canada, but will it actually protect you?
Although a global workers' treaty has been in force in Canada since January, an employment lawyer believes it won't do anything more to protect employees from violence and harassment.
Protecting your car from the growing risk of keyless vehicle thefts
Auto technology has evolved and many newer cars use wireless key fobs and push-button starters instead of traditional metal keys. But that technology also makes things easier for thieves.
Shifting winds mean smokier skies in some parts of Canada, snow in other areas
Air quality warnings are still in place for some areas of Western Canada, according to the latest forecasts.
DEVELOPING Latest updates on the major wildfires currently burning in Canada
Thousands of Canadians have been displaced as fires burn in Alberta, B.C. and Manitoba. Here are the latest updates.
Will jurors believe Michael Cohen? Defense keys on witness' credibility at Trump's hush money trial
With prosecutors' hush money case against Donald Trump barreling toward its end, their star witness will be back in the hot seat Thursday as defense lawyers try to chip away at Michael Cohen's crucial testimony implicating the former president.
U.S. intelligence officials wanted to meet with Transport Canada's UFO 'lead'
Canada's transportation department had a UFO 'lead' who tried to 'quell' media interest and planned to meet with U.S. intelligence officials.
OPINION If you think you can't focus for long, you're right: Sandee LaMotte
Regaining your focus requires you to be mindful of how you are using technology -- a daunting task if you consider the average American spends at least 10 hours a day on screens.
NEW Victoria Day travel plans? Here are some tips for a smooth trip
May 20 is Victoria Day. If you're going across the border this long weekend, follow these tips for a smoother trip.