Bad cheque scam: Report actual or possible trust fund shortages

Report immediately to the Lawyers Insurance Fund

If you discover a scam that has – or is about to – result in a shortage in client funds in your trust account, report immediately to the Lawyers Insurance Fund. Coverage is available under the compulsory policy for certain claims arising out of the bad cheque scam, subject to terms and limits specific to the risk. You do not want to jeopardize coverage that may be available to you by late reporting. And if the scam is still underway, we may be able to help prevent it from succeeding and protect you from any financial consequences. You will also want to comply with the reporting requirements of any other commercial insurance you carry that may respond to this risk.

Report the fraud to law enforcement agencies

Report it to the RCMP or to your municipal police force. You can also report a fraud to the Canadian Anti-Fraud Centre (CAFC), or get information:   

Canadian Anti-Fraud Call Centre (formerly known as PhoneBusters)
Toll-free: 1.888.495.8501
Toll-free fax: 1.888.654.9426

CAFC, jointly managed by the RCMP, the Ontario Provincial Policy and the Competition Bureau of Canada, is currently Canada’s central fraud data repository and its Call Centre Unit has 11 full-time call takers who are trained anti-fraud specialists. Eventually, you will be able to report these scamsters to the spam reporting centre being established under Canada’s upcoming anti-spam law (see Marketing to potential clients? Get ready for Canada’s new anti-spam law: Practice Watch, Benchers' Bulletin, Winter 2011).