Who knew a piece of paper from the bank could wreck your business faster than a bad Yelp review?
In this publication, we're exposing a devastating fake bank draft scam that’s leaving business owners on the brink of bankruptcy. It happened to a hardworking entrepreneur in Ontario—and it could happen to you. Let’s get into it.
Scammers are using counterfeit bank drafts to "pay" for high-value items like vehicles and equipment, only for the drafts to bounce after the goods are long gone.
How It Works:
-
The Setup:
The victim posts a high-value item (like a truck or trailer) for sale—usually to raise funds quickly. -
The Offer:
A buyer steps forward, offering a bank draft instead of cash or e-transfer. The bank draft appears 100% legit, sometimes even verified by the seller’s own bank. -
The Transfer:
The seller deposits the draft. Believing the funds are cleared, they hand over the item. -
The Sting:
Days later, the bank contacts the seller: the draft was fake. The funds are reversed. The item? Long gone.
Who’s Targeted:
- Small Business Owners trying to raise quick cash through asset sales
- Vehicle Sellers—especially trucks, trailers, and heavy equipment
- Canadians nationwide, with recent cases in Ontario and British Columbia
- Anyone accepting large payments through bank drafts
Real-Life Example:
Todd Moddejonge, a spray foam business owner in Sutton West, ON, recently fell victim to this exact scam. He sold a truck and trailer for what he believed was a genuine $158,000 bank draft, verified by RBC. Days later, the funds disappeared—leaving his company, and his 20 employees, facing potential bankruptcy.
“This could bankrupt my company,” Moddejonge said. “We might have to shut the doors. It’s actually heartbreaking.”
Police have charged a 28-year-old Oshawa man with multiple counts of fraud and identity theft. While the truck was recovered, the trailer—worth hundreds of thousands—is still missing.
Moddejonge says he’s heard from multiple other business owners who’ve fallen victim to similar scams in recent months.
Why You Should Care:
If you sell anything of value—especially in tough economic times—you could be a target. These scams don’t just cost money. They can:
- Sink businesses overnight
- Destroy trust in banks and insurance
- Leave victims fighting alone for compensation
Moddejonge was told by RBC the draft was legitimate—but now he’s left begging for accountability from banks and insurance.
How to Protect Yourself:
✔️ Never Trust a Bank Draft at Face Value
They look legit—even to bank staff—but fraudsters are a step ahead.
✔️ Verify With the Issuing Bank Directly
Call the bank that issued the draft, using their public phone number—not the one on the draft itself.
✔️ Meet at the Bank
Complete transactions in person at a bank branch. Watch the draft be created in front of you.
✔️ Wait Until the Draft Clears
Hold the item until the funds are fully cleared—not just “deposited.” This can take several business days.
✔️ Document Everything
Get written agreements and take photos of ID. If something seems off, walk away.
Quick Tips & Updates:
Quick Tip #1: Did you know? Even if your bank tells you a draft “looks good,” it can still bounce days later if it’s fake.
Pro Tip: Selling high-value items? Ask the buyer to send a wire transfer instead—it’s much harder to fake.
Fraud Watch Update: Richmond, BC RCMP and York Regional Police have seen a surge in fake bank draft scams in the past year. Be especially cautious if you’re in the market to sell large equipment, vehicles, or property.
Stay safe, stay informed.
Keywords:
• Fake Bank Draft Scam – A fraudulent scheme involving counterfeit payment instruments used to deceive sellers.
• Bank Draft – A guaranteed payment document issued by a bank, often assumed to be as good as cash.
• Fraud Over $5,000 – A criminal charge in Canada involving theft of large financial sums.
• Identity Theft – The use of stolen personal data to commit fraud.
• Asset Protection – Steps taken to safeguard high-value property or financial assets.
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