Mr. Speaker, we know that with fraud, many people have not come forward because they felt the stigma, the shame and the embarrassment of dealing with fraud. It is like dealing with mental health. We need to do a better job to change the public's outlook when it comes to sharing about fraud because fraud is happening, and it is sophisticated. It is happening because of organized crime, which is using highly sophisticated devices and attitudes to go after vulnerable people. I am going to talk a little bit about that tonight.
Recently, a senior in my riding, Peggy Christian from Courtenay, was scammed out of $100,000, her life savings. She was tricked into making wire transfers in huge amounts to scammers from Thailand, while her bank, Coast Capital Savings on Vancouver Island, did not have the protocols or the safeguards in place to protect Peggy. Peggy, who was 76 at the time, had been with Coast Capital Savings for more than 30 years. She had never gotten any transfers like this, and it should have been caught. Now, Peggy has had to sell her house and cut her costs in half just to stay above water, and her bank and the Canadian government have failed to return what she has lost.
This is a heartbreaking story that should never have happened. We know that, often, when Canadians are victimized by scams, the Canadian government punishes the victim, not the perpetrator, and I am going to tell a story about that as well.
In 2022, Canadian investors, as members have probably heard, were swept into what has been described as a more than $300-million Ponzi scheme, allegedly perpetrated by Greg Martel. Many of those investors, who come from all walks of life, are struggling to move on from their losses.
One of my constituents, Lana McKenzie, invested in that Ponzi scheme. She was already hurting from the scam, and she was actually hit again when the the CRA taxed her based on the fraudulent T5s that Lana had received from the scammer himself. Ever since then, Lana has been fighting for fairness from the CRA, but the federal government, instead of acting swiftly, has been moving incredibly slowly on Lana and other victims' objections at a time when many of those victims are already financially vulnerable.
They are living with the shame, but have come forward with courage, and I applaud them for having the courage to come forward. At the same time, we have seen no evidence that the federal government is working to return the alleged perpetrator, Greg Martel, from overseas, so he can face justice. Much of that stolen money has never been returned, and the government has not used the levers through Interpol to go after him.
We know that online fraud is impacting more and more Canadians. In 2022, the Canadian Anti-Fraud Centre reported that it had observed $530 million in reported victim losses. The Canadian Anti-Fraud Centre also received nearly 91,000 reports from Canadians that same year. According to the RCMP, fraud was the second largest contributor to the severity of crime last year. The rate of fraud, in 2023, went up by 12% and the rate of extortion went up by 35%.
It should not be so easy for Canadians to get scammed, and it should not be so hard for victims to recoup their losses. The government needs to do a lot more. We need to make sure that the banks, which benefit from these illegitimate transactions, are being held to account as well. We can look at the recent case of TD in the U.S., which allowed criminal activity because it profited from them. In fact, Merrick Garland, the U.S. attorney general, said, “TD Bank created an environment that allowed financial crime to flourish. By making its services convenient for criminals, it became one.” That is how bad it is getting.