A Victoria jewelry store is out nearly $100,000 after being hit with a sophisticated fraud scheme.
Victoria police investigators received a report of a substantial fraud at a downtown store on Nov. 4. They learned that on Oct. 29, a man went to the store and selected two expensive watches. He left the store but returned later with a bank draft and bought the watches for just under $100,000.
While the bank draft itself was legitimate, the suspect had acquired it through a sophisticated scheme, using false identification to transfer funds from another customer’s account.
Det. Sgt. Brent Keleher, a financial crimes investigator, said Tuesday that this kind of organized, sophisticated fraud is quite common.
“Speaking generally, I’m not really sure how the fraudsters get the information,” Keleher said. “Some of it may be data breaches. Some of it may be targeting individuals. Essentially, they create identification in the name of the bank account holder. And they know who to target. They go after people with substantial amounts of money in their bank account.”
In this case, the fraudster had identification in another person’s name, knew how to answer particular questions and gained the trust of the bank, Keleher said.
“The person had a good cover story and was able to pass themselves off as the account holder. Often, they say they’re out here on business and need to create another bank account. Once they are successful in opening that account, they link it to the legitimate account, move that money over and it’s theirs to spend.
“It’s a little less suspicious to convert money into gold or jewelry and watches than going in and asking to withdraw $200,000 in cash.”
Jewelry and watches are very easy to conceal and very easy to sell, Keleher said.
The crime is planned, sophisticated and well organized. The fake identification in these cases is very good, he said.
In the end, the bank may ultimately be the victim of this crime.
“If a business accepts a legitimate bank draft or legitimate currency, the bank is usually the one that suffers the loss,” Keleher said.
He advises businesses to contact banks to confirm the legitimacy of bank drafts. He also advises people to be careful with technology and to change their passwords.
“It’s constantly evolving and challenging to stay on top of each new scam that turns up,” Keleher said.
The man who selected the watches is described heavy-set with brown eyes and short dark brown hair that thinning at the crown. A dark brown beard with grey flecks was seen sticking out from his mask. He was wearing a black buttoned-up cardigan sweater, a white dress shirt open at the collar, a white T-shirt and black shoes. He had silver aviator-style sunglasses tucked into the sweater. The suspect also wore a hand or finger cast on his left hand. Investigators believe he sailed from Swartz Bay to Tsawwassen at 7 p.m. on Oct. 29.
The suspect was in the company of another taller, slimmer man who was wearing dark clothing. Police are seeking any information about where these men may have travelled and if they have a vehicle.
Police ask anyone with information to call the report desk at 250-995-7654, extension 1. To report what you know anonymously, call Greater Victoria Crime Stoppers at 1-800-222-TIPS (8477).
