Saskatchewan auto parts business falls victim to growing credit card scam

An auto parts business in southern Saskatchewan, Great West Auto Electric in Assiniboia, has been the victim of a widespread credit card scam, according to owner Leanne Tuntland-Wiebe. The business lost approximately $20,000 after three separate purchases of power tools were made using fraudulent credit cards. The scammer provided a legitimate business name, personal name, email address, and phone number, which led Tuntland-Wiebe's team to believe the transactions were genuine.

The Saskatchewan RCMP issued a warning about the scam targeting transportation companies across Western Canada, with around half a million dollars' worth of products stolen in the province so far. RCMP Sgt. William Groenen stated that the scam involves fraudsters purchasing various items like tires, oil, and mechanical tools from businesses over the phone using fraudulent credit cards.

These purchases are often disputed a day or two later, leaving businesses out of the lost money. The anonymous nature of the scam and the use of legitimate-sounding transactions make it difficult for investigators to track down the fraudsters. Tuntland-Wiebe was initially unaware of the fraudulent transactions until her bookkeeper discovered the charges after bank reconciliations three months later.

Both her financial institution and point-of-sale provider were unable to assist her in recovering the funds. The RCMP urges businesses to update their insurance policies to protect against credit card fraud and recommends getting to know customers and being cautious of orders with declined first payments to avoid falling victim to the scam.