Alberta construction group warns homeowners of fake, fear-mongering inspection letter

A residential construction company is warning Albertans to watch out from falling victim to a scam.

According to Building Industry and Land Development Association Alberta (BILD Alberta) — a not-for-profit that represents home builders — several residents in the Edmonton and Calgary areas have received fake letters imitating the association, looking to access people’s homes for an inspection.

“This was more broad than just one individual receiving a letter,” CEO Scott Fash told Global News.

“It was something a bit more widespread, which was even more concerning.”

The letter claims that a hazardous type of insulation, known as urea-formaldehyde foam insulation (UFFI), could have been used in their properties.

What is UFFI?

According to Health Canada, UFFI was widely used in the 1970s for insulating and retrofitting industrial, commercial and older residential buildings.

It’s a low-density foam that has the appearance and consistency of shaving cream, and becomes stiff and self supporting when it dries or cures (hardens).

The insulation has been banned in Canada since 1980, as it was found to release formaldehyde gas during the curing process and afterwards, such as if it gets wet. Formaldehyde can cause cancer.

The fake letter urges residents who received it to call the displayed number immediately.

“Please be aware that failure to comply with this mandatory inspection could result in legal action and may affect your ability to sell or maintain insurance coverage for your home,” the letter read.

“This inspection is not only a legal requirement but also a critical step in safeguarding your health.”

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Fear-mongering letter warning

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The fraudulent letter includes logos of the BILD Alberta Association and the Government of Alberta. Last month, BILD Alberta posted a consumer fraud notice on their website.

“It has come to our attention that fraudulent letters have been circulating, falsely claiming to be from the Government of Alberta and the BILD Alberta Association” the statement read.

“Please be advised that neither BILD Alberta Association nor the Government of Alberta has issued any such notice.”

Fash says sending letters to homeowners is not a task they do, nor do they conduct home inspections as an organization.

“That’s completely absurd, and again, that’s a really easy way if somebody doesn’t understand that and most people wouldn’t,” Fash said.

“Preying on somebody’s home is a really easy way of taking advantage of them. When somebody were to get a letter like that, they’re obviously going to be very concerned.”

The Alberta government has also posted a consumer alert warning, explaining the letter is not endorsed by them.

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Realtors warned of scam letter

Since then, the information has been forwarded to several realtors across the province.

Clear Trust Mortgages associate Zachary Yuzyk said homeowners should be skeptical if they receive any notice that pressures them to ‘act fast’ or if there are threats of legal action.

“That wouldn’t be on the homeowner, right? That would be something that you didn’t know about. That would be a material defect you weren’t aware of moving into the property,” Yuzyk explained.

Following a rise in scams on several communications platforms, Yuzyk wants to remind residents to pause and think before acting.

“Everyone knows about the phone scams, everyone knows about the email scams, and now it’s going back to physical mail. I just feel that people think that an official document has more authority,” Yuzyk explained.

“That’s just not the case. It doesn’t matter how it comes — you should always be skeptical.”

Residents who have received this notice are asked not to take any action based on the instructions of the letter and to contact the Canadian Anti-Fraud Centre.

BILD Alberta says if homeowners already contacted the sender, they should file a report with their local police department.

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