Ontario Fraud Cases Surge as COVID Backlogs Force Charges Dropped

UPDATE: A staggering 58% of fraud cases in Ontario have been dismissed or withdrawn, as COVID-19-related backlogs and insufficient resources cripple the criminal justice system. The Ontario Crown Attorneys’ Association revealed this alarming trend, stating that the province is struggling to cope with a surge in fraud incidents.

According to data from Statistics Canada, the number of fraud reports has more than doubled since 2014, skyrocketing from just over 30,300 incidents to over 71,700 in 2024. This surge has put immense pressure on Crown prosecutors, who are now forced to prioritize cases due to a lack of resources.

Lesley Pasquino, president of the Ontario Crown Attorneys’ Association, emphasized the dire situation, stating, “When there aren’t enough resources, Crowns are put in the unenviable position of having to prioritize.” She noted that the overwhelming workload is pushing many cases out of the trial stream, jeopardizing justice for victims.

In the fiscal year 2023-2024, fraud cases faced an unprecedented rate of dismissal, with more than half ending in charges being stayed or withdrawn. This marks a disturbing increase from 46% just a decade earlier. The ongoing pandemic has exacerbated these issues, creating significant backlogs across the justice system.

Ontario Attorney General’s Office has responded to the crisis, announcing an investment of over $500 million to address these backlogs by 2027-28. This plan includes hiring nearly 700 new Crown prosecutors and additional court staff to alleviate the burden on current resources.

Despite these efforts, experts warn that the rise in fraud incidents—exacerbated by increasingly sophisticated criminal schemes—will require more than just individual prosecutions. Peter German, president of the International Centre for Criminal Law Reform, urges a shift towards disrupting organized crime networks behind these frauds, stating, “Disruption might very well be the route that police have to follow.”

As fraud cases continue to overwhelm law enforcement, the human impact is significant. Ontarians reported losses of nearly $193.5 million to fraud this year alone, with many cases going unreported. The Canadian Anti-Fraud Centre estimates that only 5% to 10% of victims report their losses, highlighting the urgent need for better prevention measures.

Experts like Vanessa Iafolla, a Halifax-based anti-fraud consultant, advocate for private sector involvement to combat fraud. She emphasizes the need for telecom companies to enhance screening processes to prevent fraudsters from reaching Canadians. “Not letting fraudsters have access to us is a huge step forward,” she asserts.

The situation in Ontario mirrors national trends, with fraud incidents rising across Canada, yet police investigations declining. Experts suggest a collaborative effort between law enforcement and the finance industry could be key in tackling this escalating issue.

As the province grapples with these challenges, the demand for immediate action is clear. The community is urged to remain vigilant and report any suspicious activities to help combat the rising tide of fraud. With ongoing investments and proposed reforms, there may still be hope on the horizon to restore justice in Ontario.