Two people have been charged in connection with a “series of cyberattacks” targeting the government’s pandemic wage subsidy program, which resulted in fraudulent claims worth $5.7 million.
In a news release on Friday, the Royal Canadian Mounted Police (RCMP) announced the results of their investigation into the “cyber intrusions” that affected the Canada Emergency Wage Subsidy (CEWS) program, which was introduced during the COVID-19 pandemic to support employers and administered by the Canada Revenue Agency (CRA).
“The investigation revealed a coordinated scheme in which suspects fraudulently obtained CEWS funds by exploiting compromised online credentials belonging to legitimate Canadian businesses,” the RCMP said.
The suspects allegedly used a compromised “Represent a Client” credential to submit unauthorized CEWS applications on behalf of legitimate businesses, whose CRA My Business account access had been unlawfully obtained.
“Investigators further determined that the affected businesses were unaware their accounts had been accessed and used to submit wage subsidy applications,” the RCMP said.
Two people, identified as 50-year-old Mohammed Ehteshamul Huq and 79-year-old Robert Arthur Otto, have been charged with fraud over $5,000, laundering proceeds of crime, possession of identity information for the purpose of committing an indictable offence and possession of property obtained by crime.
The RCMP said the two accused are scheduled to appear in a Brampton court next month.
“Cyber-enabled fraud undermines public trust in government programs designed to support Canadians during times of crisis,” RCMP Insp. Guy Michel Nkili said in a statement.
“This investigation highlights the importance of strong collaboration between the RCMP and the Canada Revenue Agency to identify, disrupt and hold accountable those who exploit emergency financial assistance programs.”
Harry Gill, the assistant commissioner and agency security officer of the CRA’s Security Branch, reiterated that the CRA takes fraud against government programs “extremely seriously.”
“Those who deliberately exploit emergency measures, designed to support Canadian workers and businesses, undermine public trust and will be pursued to the fullest extent of the law,” Gill said in a statement.
“We will continue to work closely with law enforcement partners to detect, prevent, and disrupt schemes that target government systems and public funds.”
