RCMP have charged two people following an investigation into an alleged cyber-enabled fraud scheme that targeted Canada’s pandemic-era wage subsidy program and generated approximately $5.7 million in fraudulent claims.

Investigators allege compromised online credentials belonging to legitimate Canadian businesses were used to access Canada Revenue Agency accounts and submit unauthorized applications under the Canada Emergency Wage Subsidy program. The affected businesses were reportedly unaware their accounts had been accessed or used to make the claims.

The investigation began in 2021 as a joint operation involving the RCMP and the CRA’s Criminal Investigations Division. Police say a compromised “Represent a Client” credential was used to submit applications through businesses’ CRA My Business Accounts, while FINTRAC also assisted investigators.

Mohammed Ehteshamul Huq, 50, and Robert Arthur Otto, 79, have each 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.

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Originally published on Canadian Fraud News.