Impersonation fraud
In March 2026, the EPS began investigating incidents of businesses being defrauded by individuals impersonating employees from other organizations. In each incident, fraudsters create fake email addresses and website domains that closely resemble real, well-known businesses, often using the names of employees listed on legitimate, publicly accessible websites and social media feeds. The suspects then place orders which appear genuine but are often shipped to third party warehouses or shipping facilities, before being quickly sent overseas. Invoices are never paid.
The EPS recently investigated an impersonation fraud resulting in a local business losing $50,000 in product. Since then, investigators have identified several companies across Canada impacted by the same scheme, resulting in potential combined losses of more than $300,000. Of that, officers were able to intercept $130,000 worth of goods before shipping. Some of these scammers have impersonated large and well-known retailers including Nestle, Parsons Corporation, Emco Corporation and JBS Foods.
Chargeback fraud
Officers also recently investigated a fraud where stolen credit cards were used to make legitimate purchases, resulting in a $25,000 loss for a local business. In this scheme, the actual cardholder reports the transactions as fraudulent and financial institutions often reverse and return the funds to them after product has been delivered or a service rendered. This process is called chargeback, and defrauded businesses are subsequently left without their product and payment, in addition to other fees incurred during this process. Fraudsters also frequently target businesses offering shipping or delivery services in this scheme so they can distance themselves from the initial transaction. Like the first scheme, products are often shipped to third party addresses or other shipping companies, making it harder to track and identify the individuals responsible.
“To date, the majority of these frauds result in product shipped to addresses in Quebec, where they are then placed into shipping containers bound for ports in Africa,” says Detective Jason Lapointe with the EPS Financial Crimes Section. “Once shipped, it is often impossible to recover the product or collect payment, resulting in significant losses for businesses that may have long term and lasting impacts on their financial viability.”
Protecting your business
There are several steps business owners can proactively take to prevent being victimized by these frauds:
- Independently verify new customers or changes in ordering patterns using known contact information
- Carefully examine email domains for subtle differences like misspellings or extra characters
- Question large or urgent orders, particularly from new contacts – verify them with known contacts
- Confirm shipping addresses, especially if they differ from previously established locations
- Train staff to recognize signs of social engineering and impersonation
- Be cautious of mismatched billing and shipping information
- Maintain detailed transaction and shipping records
- Report suspicious activity promptly to police and financial institutions
“Business owners who believe they may have been targeted or victimized are encouraged to report the incident to their local police agency,” says Lapointe. “Awareness and early reporting are key to preventing further losses and help us identify emerging fraud trends quickly.”
If your business is located in Edmonton and you believe you have been defrauded in a similar way, please contact the Edmonton Police Service at 780-423-4567 or #377 from a mobile device. You can also report at your nearest police station.