CERB ‘snitch line’ receives 1,300 tips on fraudulent applicants

That number is up from the 600 tips received as of June 1. The CRA began reviewing a total of 1,300 tips on Wednesday that came in via its Leads Program, commonly referred to as the CRA's snitch line.

The CERB (Canada Emergency Response Benefit) first came into effect in mid-March as a way for Canadians to cope with the financial hit they took as a result of the COVID-19 pandemic. The virus brought on lockdown measures that saw Canada's unemployment rate up to 13.7 percent, beating out the highest rate previously, which was 13.1 percent in December of 1982.

Between March and April, three million jobs were lost and an additional 2.5 million Canadians saw their work hours drastically cut down.

The CERB program was introduced to temporarily alleviate the financial struggles of Canadians by providing them with up to $2,000 per month and a 75 percent wage subsidy for employers. However the money was given out in a hasty manner without the proper check or balances to ensure that it was given to those who were properly eligible for it.

Many critics have found the process far too easy for anyone to make fraudulent applications despite the government warnings of coming consequences. On Wednesday, a bill was brought forward to impose consequences for CERB fraudsters involving financial penalties and even jail time however the bill did not get enough to support to pass in the House of Commons.

The bill proposed to hit fraudulent CERB applicants with either a $5,000 fine and a penalty of repaying up to double what they received through the program, or a $5,000 fine and up to six months in jail.

Should applicants refuse to go back to work when able to do so, they would also face a penalty of up to triple the amount they received.

As of this week, about 190,000 Canadians have repaid CERB benefits after being deemed ineligible.