Interesting report from Mugglehead.
Not an issue in the old cash economy!
Edmonton police are warning consumers who buy cannabis from illicit sellers online that there’s a risk of identity theft and fraud.
In a statement issued Tuesday, officers say ongoing investigations have found that Edmonton-area “organized crime networks” are running illicit cannabis sales online, and requiring buyers to submit sensitive personal information to verify their identity.
Police say that in 2021, 15 people involved in organized crime networks have been arrested for violating the Cannabis Act and the Controlled Drug and Substances Act, as well as some weapons-related charges.
Hundreds of text messages with pictures of customer IDs were found during arrests, according to police.
“Some of the individuals arrested also had recent criminal charges or convictions for identity theft, break and enter, fraud under $5,000, credit card fraud and possession of stolen property,” reads the police statement.
Police warn of identity theft and fraud risk in online cannabis sales
Police are noticing a concerning trend of personal information gathering by illicit cannabis sellers.
Ongoing Edmonton Drug and Gang Enforcement (EDGE) Unit investigations into Edmonton-area organized crime networks revealed that not only are these crime networks running illicit online cannabis ordering operations, but they are also requiring prospective buyers to submit sensitive personal information in order to verify their identity.
In most transactions, the sellers request photographs of the prospective buyer’s government ID, a photo of the buyer holding that ID, and another piece of documentation such as a utility bill, which contains the buyer’s address. Buyers are not aware that their personal information is often distributed through criminal networks, placing them at high risk of identity theft and fraud.
In 2021, 15 individuals involved in organized crime networks have been arrested for Cannabis Act and Controlled Drug and Substances Act contraventions, along with some weapons related charges.
During these arrests, police found hundreds of text messages containing images of customer IDs. Some of the individuals arrested also had recent criminal charges or convictions for identity theft, break and enter, fraud under $5000, credit card fraud, and possession of stolen property.
Some of the images found on the cell phones of the accused. Buyers are asked to submit photos of themselves holding their ID.
“What’s concerning about this is that unsuspecting buyers are handing over their personal information to people who have criminal connections and, in some cases, convictions related to identity theft and fraud,” says S/Sgt David Paton, EPS EDGE Section. “Being in possession of illicit cannabis could result in criminal charges, but being a victim of identity theft should also be a very real concern, given the devastating financial and personal cost of this crime.”
In Alberta, the AGLC is federally appointed as the provincial body with the authority to sell recreational cannabis products online. As such, the AGLC website albertacannabis.org is currently the only legal online retailer of recreational cannabis in Alberta. (For people with medical cannabis prescriptions, a list of licensed cultivators, processors and sellers of medical cannabis is available through Health Canada.)
Remember: scammers don’t always commit identity fraud immediately; it can take years before a stolen identity is used in a crime. Be sure to keep your identity safe and check your credit ratings. You can learn more about these frauds and the necessary information you should bring when filing a fraud report on our fraud webpages.