Two people have been charged following an RCMP investigation into alleged cyber-enabled fraud involving Canada’s pandemic-era wage subsidy program. Police say the scheme used compromised online credentials belonging to legitimate Canadian businesses to submit unauthorized Canada Emergency Wage Subsidy claims worth approximately $5.7 million.

Two people have been charged in connection with an alleged $5.7 million cyber fraud targeting Canada’s pandemic-era wage subsidy program.

The Royal Canadian Mounted Police announced that its investigation focused on a series of cyber intrusions affecting the Canada Emergency Wage Subsidy program, known as CEWS. The program was introduced during the COVID-19 pandemic to help employers keep workers on payroll and was administered by the Canada Revenue Agency.

According to the RCMP, investigators uncovered what they described as a coordinated scheme involving compromised online credentials connected to legitimate Canadian businesses. Police allege those credentials were used to access business accounts and submit unauthorized wage subsidy applications.

The investigation found that the suspects allegedly used a compromised “Represent a Client” credential to file CEWS claims on behalf of businesses whose CRA My Business account access had been unlawfully obtained. The affected businesses were reportedly unaware that their accounts had been accessed or used to submit applications.

The two accused have been identified as 50-year-old Mohammed Ehteshamul Huq and 79-year-old Robert Arthur Otto. They have been charged with fraud over $5,000, laundering proceeds of crime, possession of identity information for the purpose of committing an indictable offence, and possession of property obtained by crime.

Police say the accused are scheduled to appear in a Brampton court next month.

The case highlights the continued enforcement fallout from pandemic-era relief programs, particularly where digital access credentials were allegedly used to exploit government systems. Public benefit programs such as CEWS were designed to move funds quickly during a national emergency, but that same urgency also created opportunities for fraudsters to target online portals, business accounts, and identity information.

RCMP Insp. Guy Michel Nkili said cyber-enabled fraud undermines public trust in emergency programs intended to support Canadians during times of crisis. The CRA also emphasized that fraud against government programs is treated seriously and that it will continue working with law enforcement to detect and disrupt schemes targeting public funds.

The charges have not been proven in court.

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Originally published on Canadian Fraud News.