Saskatchewan auto parts business loses $20,000 to widespread credit card scam

A southern Saskatchewan auto parts business is among more than a dozen transportation equipment companies in the province that have been defrauded by a sophisticated credit card scam. Leanne Tuntland-Wiebe, owner and manager of Great West Auto Electric in Assiniboia, reported losing about $20,000 earlier this year due to three separate purchases of power tools made with fraudulent credit cards.

"He gave us a business name, gave us his personal name, gave us an email address, gave us a phone number, which sounded legit, so my guys didn’t think that much about it," Tuntland-Wiebe told Global News. The scam involves fraudsters posing as legitimate customers, ordering products like tires, oil, and mechanical tools over the phone using stolen credit card information. The purchases initially appear valid, but within a day or two, the businesses are notified of chargebacks, leaving them out the money and the products.

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He gave us a business name, gave us his personal name, gave us an email address, gave us a phone number, which sounded legit, so my guys didn’t think that much about it.

Saskatchewan RCMP Sergeant William Groenen confirmed the widespread nature of the fraud, cautioning the public about "large-scale fraud" targeting transportation companies across Western Canada. He noted that businesses in various communities, including Battleford, Weyburn, Kindersley, Hudson Bay, and Moosomin, have reported similar incidents. So far, fraudsters have stolen approximately half a million dollars' worth of products in Saskatchewan alone, with investigations aware of the scam's presence in other western provinces.

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It appears to be legitimate and like it’s an approved purchase, and in some time within a day or two, the purchase is being disputed, and then the businesses are out the money that’s associated with it.

Investigating these digital offenses presents challenges due to their anonymous nature and the perpetrators' ability to operate from anywhere. "These digital types of offences continue to increase. They’re long, drawn-out investigations, and they take a lot of resources, but they’re important for us to keep trying to coordinate," Sgt. Groenen stated. Mounties began investigating the scam in March and believe a single group is responsible, though no charges have been laid yet.

Great West Auto Electric discovered the fraud months later when their bookkeeper noticed the chargebacks during bank reconciliations. Tuntland-Wiebe expressed concern that they weren't notified of the chargebacks sooner, which might have allowed them to provide more information to the RCMP. She recalled the individuals who picked up the order were "nondescript" and their vehicles unmarked, making it impossible to identify them as fraudulent at the time.

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These digital types of offences continue to increase. They’re long, drawn-out investigations, and they take a lot of resources, but they’re important for us to keep trying to coordinate.