Twelve arrested in fraud scheme

‘Synthetic identities’ used to open credit accounts, police say

Toronto police have arrested 12 people and laid 102 charges in a major fraud investigation.

At a press conference Monday, police announced the results of a twoyear-long synthetic identity fraud investigation dubbed Project Déjà Vu. Synthetic-identity fraud involves the use of real information, such as a person’s SIN, with fake information like false names or birth dates in order to create a new identity for financial gain.

Det. David Coffey of the financial crimes unit said the perpetrators created more than 680 unique synthetic identities, many of which were used to apply for and open hundreds of bank and credit accounts at various financial institutions across Ontario.

He said the fraudsters drew money from the fraudulently obtained credit accounts through in-store and online purchases, cash withdrawals or electronic fund transfers. In many of these cases, fraudulent payments were made into the credit account, allowing them to be drawn beyond their defined limits.

The scheme, believed to have started in 2016, resulted in $4 million in losses.

“These fraudsters are really smart, they are advancing with technology. The identification is very convincing,” said Coffey.

While these fraudulent IDs often get caught at financial institutions, he added, that isn’t always the case.

During Project Déjà Vu, investigators executed more than 20 search warrants, seizing several dozen synthetic identity documents, including fraudulent government identification, and electronic templates to create false identifications. Police also seized hundreds of debit, credit and charge cards linked to accounts made under fake identities and about $300,000 in Canadian and foreign cash.

Twelve men between the ages of 26 and 60 — most of them from Brampton — face a combined 102 charges. Investigators are working to identify more people believed to be involved in the scheme and believe there may be more victims.