Good afternoon.
Thank you, Madam Chair.
It is a pleasure to appear before this committee as part of its study on the Canadian response to the COVID-19 pandemic.
Appearing with me today is Sergeant Guy Paul Larocque, who has a leading role in managing the Canadian Anti-Fraud Centre, or CAFC.
As part of our mandate to protect Canada’s economic integrity, financial crime, including fraud, has long been a federal policing priority for the RCMP. In the face of the COVID-19 pandemic, our work with public and private partners in Canada and around the world in combatting and preventing fraud have only become more important. This shared responsibility speaks to the trust Canadians place in the RCMP to keep them safe and provide an effective and timely response to the COVID-19 pandemic.
As the measures to contain the crisis continue, the strain on Canadians and the institutions that serve the country will only deepen. Criminals will seek to exploit vulnerabilities in the system, as well as in Canadians themselves, as we have unfortunately witnessed. We must be diligent in combatting attempts to victimize the most vulnerable by those who prey on Canadians' fears and uncertainty around the pandemic. To be clear, criminals are actively exploiting fear, uncertainty and doubt around the COVID-19 pandemic. We know this because the CAFC has seen a dramatic increase in reporting on fraud from January to April when compared with the same period last year.
Since March 2020, we have seen almost 1,000 complaints of fraud related to COVID-19. Most of these are phishing attempts, where criminals will seek to gain personal information through emails or text messages pretending to be linked to Canada emergency response benefit claims, or attempts to install malware on victims’ devices. However, the biggest monetary losses stem from the fraudulent sale of goods related to COVID-19, such as masks, testing equipment or miracle cures.
While we've seen a large number of COVID-19-related fraud reports, criminals continue to use traditional scams and frauds to exploit Canadians. These frauds take a terrible toll on Canadians. For example, estimates of fraud against seniors last year were over $700 million. These types of fraud have grown during the pandemic as these heartless criminal groups continue to target human and institutional vulnerabilities. Finally, organized crime groups are attempting to defraud the government and undermine efforts to get financial aid into the hands of those who are genuinely in need of aid. The escalation of fraud activity related to COVID-19, as well as traditional fraud, really shows the ability of criminal groups to adapt to and exploit these circumstances for personal gain.
In direct response to the frauds committed in relation to COVID-19, the RCMP have enhanced intelligence enforcement efforts toward this illegal activity as we recognize, more than ever, that at all levels of policing the RCMP have a significant role to play. To coordinate the RCMP response, in March we began running a program specific to COVID-19-related fraud. Coordination efforts are under way at national headquarters, while intelligence analysis and statistical gathering, as well as outreach, are done by the CAFC. Disruption and enforcement are conducted by members in the divisions, who also have the responsibility of liaising with the police of jurisdiction to further coordinate responses at the local level.
In recognition of the shared responsibility between public and private agencies to combat fraud, the RCMP are working collaboratively with key partners and stakeholders, domestically and internationally, to exchange intelligence and coordinate enforcement efforts as they relate to the pandemic. While the initial focus was on online frauds, this has quickly expanded to cover all fraud and criminality with a nexus to COVID-19 to better ensure public safety.
A crucial component in the fight against fraud is prevention, as these fraudsters and their operations are so pervasive, insidious and profitable that relying on enforcement alone is like pulling weeds. As my grandmother often relayed, an ounce of prevention is worth a pound of cure. Continually enhancing public awareness is a vital tool in the prevention strategy that must continue. As you may recall from our last appearance before the committee, the RCMP have operated the CAFC in partnership with the Competition Bureau of Canada and the Ontario Provincial Police since 2005. This centre has been a leader in prevention initiatives, including being extremely active on a variety of media platforms to communicate with Canadians.
As well as operating the CAFC, the RCMP maintain a federal policing prevention and engagement unit. This unit plays a key role in coordinating meetings with multiple police agencies, Government of Canada agencies, private sector vendors and financial institutions from across Canada.
With that, I will cease. I could probably go on, but there are other people who want to talk.
I look forward to your questions.
Thank you very much.