Fraudsters rob struggling Eastern Townships food bank of $15K using fake cheque

A food bank, already struggling to provide relief to tens of thousands of residents in Quebec's Eastern Townships, is reeling after it was defrauded out of $15,000. 

One or more individuals created fake cheques using Moisson Estrie's banking information after managing to obtain its account number. 

To date, two falsified cheques were presented to banking institutions. The first, in the amount of $50,000, was deemed suspicious by a bank employee and blocked. 

The second, in the amount of $15,000, fell through the cracks and was cashed, however.

"A $15,000 hole is still huge. We don't have millions in reserve, we really don't," organization director Geneviève Côté said. 

Moisson Estrie noticed the unusual withdrawal a few days later. Its administrators are now wondering why the cheque was accepted when it was not authentic and did not bear the signature of one of the organization's signatories recognized by its financial institution, Desjardins. 

A $15,000 hole is still huge. We don't have millions in reserve.

"It looks like, but isn't identical to, the signature of the person who writes our charitable donation receipts but doesn't issue cheques," said Côté.

"This leads me to believe that the person who wrote this cheque did their research in connection with Moisson Estrie to find the account number, reproduce a cheque and imitate the signature of an employee." 

The organization should get its money back, but the process isn't so easy. The reimbursement has been pending for two weeks — a heavy burden on Moisson Estrie's budget as a non-profit organization, Côté said.

There's also stress associated with wondering if there will be another withdrawal, and the only way to know is to check the account every day, she added.

"We are not safe from other cheques showing up in this way," Côté said. "We find ourselves with our hands tied like,  'Hopefully we don't have other situations like that.'"

A complaint has been filed with the Sherbrooke police, who say an investigation is underway. 

Côté hopes the suspect or suspects are caught as soon as possible so "there will not be another victim."

Every cheque is checked: Desjardins

Meanwhile, Desjardins Group maintains that every cheque goes through a verification process, but that this can take a few days.

Chantal Corbeil, senior spokesperson at Desjardins Group, could not reveal the company's verification methods, citing security risks. But she said Desjardins is aligned with the market's best practices, as are other financial institutions.

"There is a lot of collaboration between us. Cheques are verified. There are several levels of verification," Corbeil said. 

The type of fraud Moisson Estrie experienced is widespread, she added. The organization will be reimbursed, but Corbeil did not say when the money will be back in the group's account. 

"What is important is that the member, when he or she is a victim of this type of fraud, is not held responsible, and the person who will assume the loss is really the financial institution, in this case Desjardins," she said.

There are certain steps the public can take to protect themselves from this type of fraud, said Mark Wright, director of communications for the Ombudsman for Banking Services and Investments (OBSI), an impartial organization that resolves disputes between banking services and investment firms and their customers.

Wright suggested people make sure cheques and bank statements are kept in a safe place; shred paper statements or cheques they no longer need; and check account statements at least once a month.

Many banks also have alert systems for which people can sign up that signal when there is a withdrawal from their account, which could make it possible to quickly intercept unusual activity, Wright added.

"If a consumer sees anything unusual, they should contact their bank immediately," he said.