Toronto police say an investigation into a taxi scam involving a criminal network has led to at least 300 victims losing around half a million dollars by discreetly swapping debit or credit cards.
“The scam involved the suspects masquerading as legitimate taxi operators,” said Det. David Coffey at a press conference on Wednesday.
Coffey detailed the 10-month long fraud investigation called Project Fare that began in July 2024.
He alleges suspects would pose as taxi drivers using modified vehicles that resembled licensed cabs.
“It would be cars that were made up to look like taxicabs. They would get signage somehow. We have reports of signs being purchased from Amazon,” Coffey said.
The victims would be denied the ability to use cash and were asked to pay for their fare using debit or credit cards. During the transactions, the fake taxi driver would swap out the victim’s card with a similar-looking fake one retaining the real card with the PIN number, Coffey said.
He detailed that sometimes the fake taxi driver would hand the victim a POS (point of sale) machine that “wouldn’t work.” The driver would then take hold of the machine, and the card, saying “let me try” and that’s when the swap would happen, Coffey said.
“Maintain control of your card is a big thing,” Coffey said, adding that city bylaws mandate taxis take cash, which he says is another indicated that something isn’t right.
Coffey said the victim’s real debit or credit card would then be used at ATMs to withdraw cash, to make high-value purchases, or to deposit fraudulent cheques to inflate bank accounts.
Investigators seized multiple POS terminals, high-end clothing, electronics, artwork, numerous bank cards, and vehicles resembling taxis. Some of those items were on display at the press conference.
Toronto police display items seized in Project Fare.
Catherine McDonald / Global News
Police said by the end of their investigation, there were 300 victims with total losses of more than $500,000. Coffey noted all five of the major banks had reported the fraud, often times on behalf of the victims.
Through Project Fare, police have arrested 11 people who are collectively facing 108 charges. None of the accused were out on bail at the time of their arrest, except for one who was on house arrest.
Coffey said some people were defrauded tens of thousands of dollars, some a couple thousand and others less than one thousand. He said it depended on when the victim realized their card had been swapped.
“Certainly the damages are greater relevant to the amount of time that passes,” Coffey said.
He said these fake taxi drivers would embed themselves in taxi stands, or high traffic areas such as outside clubs or theatres where people come out looking for a taxi.
He added that taxi scams are not a new phenomenon but that they are still happening.
“I want to emphasize this is not an indictment of the legitimate taxi industry,” he said. “The individuals involved in this scheme deliberately deceived their victims into believing they were legitimate taxi drivers. Licensed professional taxi operators across Toronto continue to provide an essential transportation service for many residents in our city.”