RCMP are investigating a “sophisticated” fraud scheme that targeted the town of White City and the RM of Edenwold connected through the WCRM158 Wastewater Authority, which is jointly owned by the two municipalities.
A fraudster electronically impersonated the Wastewater Authority, which resulted in the defrauding of the Town of White City of $200,000 and the RM of Edenwold of $497,000, read the statement.
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On July 29, after the municipalities discovered the fraudulent activity, they immediately notified the RCMP and relevant financial institutions.
“This fraud incident was isolated and targeted and did not involve any breach of internal municipal systems. No personal information belonging to ratepayers was compromised,” said the statement.
The two municipalities are focusing on recovering the funds, and both are cooperating with the RCMP.
Since this matter is under criminal investigation, the Town of White City, the RM of Edenwold and the Wastewater Authority refrained from providing further public comment until the matter is resolved.
In the meantime, both municipalities are “taking proactive steps to strengthen internal controls and operational procedures. Current staff-led training initiatives will be continued to enhance employees’ ability to identify and prevent potential instances of fraud.”
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