RCMP investigate HVAC scams playing on government rebates

CITYnews halifax / By Rachel Morgan

The Nova Scotia RCMP Commercial Crime Section (CCS) is investigating multiple reports of fraud relating to the sale of HVAC systems, and it is not the first time these complaints have reared their heads.

The RCMP says scammers are exploiting HVAC companies advertising genuine efficiency rebates to lure people into signing up for loans online. Once potential victims have entered their personal details into a social media link or website, investigators say this information is sent to the fraudsters.

But it is not only the victims that are being fooled. Investigators say these scammers are employing staff who believe they’re working for legitimate companies. These employees are tasked with following up with prospective victims and using sales tactics to convince then to enter contracts that can total more than $30,000.

“If the loan agreement is signed, the victim’s funds go straight to the scammers’ bank account,” Cpl. Andy Bezanson, CCS investigator, said in a press release. “Then the fraudulent HVAC representatives cut off contact, leaving the victim to pay off the hefty loan for a system they never received.”

RCMP are reminding anyone looking to purchase an HVAC system to do their due diligence. This is not the first time police have investigated fraudulent activity targeting people looking to purchase heating and cooling systems.

Related:

• Dartmouth woman faces over 100 fraud related charges: RCMP
• Fake car dealer faces more fraud charges in Nova Scotia
• Man wanted for fraud offences in Nova Scotia arrested in Saskatchewan
• RCMP charge 2 Toronto residents with defrauding almost 600 Canadians out of millions of dollars

In the latter part of July, Halifax Regional Police opened an investigation into two men posing as representatives from HVAC companies. Police say they were advertising energy efficiency rebates on social media prior to setting up appointments at people’s homes.

“During the appointment, the representatives ask to see several personal documents such as a Notice of Assessment, property tax bill, driver’s license and power bill,” HRP said in a release.

This information was then used to apply for loans to pay for installation. This loan money is transferred to the fraudsters and the victims are told they will receive a rebate; one that never comes. Instead the contracts are cut and the victims are left paying out the loan.

“You should never feel pressured to hire a contactor or enter into a financial contract with them; that’s a red flag,” says Cpl. Bezanson. “And don’t provide any personal information until you’re sure that the company you’re dealing with has an established record and is in good standing with the Better Business Bureau.”

According to the Canadian Environmental Law Association, HVAC scams are becoming more common because it is easy to play off of government rebates. Since these scams are often initiated in person, they also tend to target seniors.

“Since 2020, ACE has received thousands of phone calls from victims of scams perpetrated by salespeople from certain HVAC and home improvement companies,” Bethanie Pascutto, Litigation Lawyer with Advocacy Centre for the Elderly (ACE), said in a press release. “These scammers exploit the promise of government rebates to defraud low-income home owning seniors.”

Tips to protect oneself from a scam. (CHIP Reverse Mortgage)

Representatives for CHIP Reverse Mortgage say one of the first tell-tale signs of a scam is when someone from a home improvement company offers a “free inspection” of your home equipment. They say the company will then tell you that one or more of your systems (heating, cooling, water, etc.) needs replacing.

These companies will then pressure you to replace the equipment immediately, they say.

To protect oneself from scams, authorities caution homeowners to vet anyone entering their home and make sure the company is listed with a good score through the Better Business Bureau.

The current investigation is ongoing with assistance from HRP Integrated Fraud group.

Anyone with information is asked to contact police or submit an anonymous tip to Crime Stoppers.