In today's digital age, the convenience of online job searching can sometimes come with hidden dangers. In 2024, the Canadian Anti-Fraud Centre (CAFC) reported a surge in job opportunity fraud, with economic losses in Canada reaching $47 million. Ontario experienced the highest losses among provinces with almost $15 million due to job scams. The Ontario Labour Relations Board's decision in the case of Tahseen Jaffri v Cord3 Innovation Inc. serves as a cautionary tale for both job seekers and employers about the prevalence of employment scams. This bulletin will explore the details of the case and offer practical advice to employers on how to protect themselves and their potential employees from falling victim to such fraudulent schemes.
What Happened?
The case involved an individual who believed he had secured a position as a Finance Manager with Cord3 Innovation Inc. ("Cord3"), a legitimate company, through an online recruitment process. After receiving a job offer online, he signed an employment agreement and provided the necessary personal information, including banking information, requested by the purported employer. The individual began online "training" tasks related to cryptocurrency transactions. All communications were conducted via email, and he did not meet anyone from the company in person. Eventually, the communications ceased, and he was never paid. Upon visiting the company's office, he learned he had been the victim of a scam perpetrated by persons posing as Cord3. Cord3 was not involved in any hiring process with the individual, nor did it have any need for a Financial Manager, especially one dealing with cryptocurrency, an area the company did not engage in.
The individual initially filed a claim with the Ministry of Labour, Immigration, Training and Skills Development for unpaid wages, per section 11 of the Ontario Employment Standards Act (the "Act"). His claim was denied. The Ministry found that as Cord3 had never employed the individual, the company had not contravened the Act. Unfortunately, it further found that there was no other verifiable legal entity that employed him, thus no further action could be taken.
The individual appealed the denial to compensate him for unpaid wages with the Ontario Labour Relations Board.
What Did the Board Decide?
The Ontario Labour Relations Board concluded that Cord3 had never employed the individual and was not involved in the fraudulent job offer he received. His claim for unpaid wages was denied due to insufficient evidence.
The Board found that the individual had been deceived by scammers impersonating the company, as evidenced by discrepancies in email domains and employment documents. Although the individual's online research led him to believe the company and its HR representative were legitimate, his belief was not sufficient to validate the authenticity of the emails and employment agreement, underscoring the ease of online impersonation. Other individuals who received similar fraudulent job offers had contacted the actual HR representative to verify their authenticity.
The evidence also confirmed that Cord3 had no involvement in hiring the individual and was aware of the fraudulent use of its name. The company provided proof that they had never employed him, had not recruited for the alleged position, and did not deal in cryptocurrency. Cord3 had reported the scam to the Canadian Anti-Fraud Centre and took steps to alert potential victims through LinkedIn and their website.
Key Takeaways for Employers
Employers should actively protect their brand reputation by regularly monitoring the internet for unauthorized use of their company name and branding. This includes checking for recent scams through resources like the Better Business Bureau. Upon discovering any misuse of the company name in scams, employers should promptly report it to authorities such as to the Canadian Anti-Fraud Centre or the Competition Bureau. Additionally, they should inform the public through their website and LinkedIn page, as demonstrated by Cord3 in the case mentioned earlier.
As noted in our recent bulletin, in May 2025, the government of Ontario introduced Bill 30, Working for Workers Seven Act, 2025. If passed, this Bill would provide an additional tool to assist employers and job seekers by requiring that job posting platforms implement mechanisms for reporting fraudulent job postings to the platform.
This case underscores the need for vigilance in the digital job market. Employers must proactively safeguard their brand and protect potential employees from fraudulent schemes.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
