Police issue warning about cryptocurrency investment scams
Posted Apr 21, 2022 08:15:00 PM.
Waterloo Regional Police are out with a warning about cryptocurrency investment scams.
They say over the past 10 months they have received 20 reports from victims, adding in some of the cases residents have utilized lines of credit, credit cards and their life savings.
Police peg the total loss at over $2 million, with individual losses ranging from $35,000 to $390,000.
According to police cryptocurrency scams and fraud scams attempt to steal money and personal and financial information from victims.
“Fraudsters will offer cryptocurrency buy-ins, promising a high rate of return, in a short amount of time. Instead, victims lose their investment and sometimes their personal and financial information. It should also be noted that cryptocurrencies operate independently of a central bank and are currently unregulated in Canada. When victims lose money as a result of these scams, banks will not reimburse clients for any losses, as the loss is not the result of a regulated bank’s actions.” police explained.
The rest of the details were contained in a news release:
The introduction to this type of investment scam typically happens in one of two ways. In the first, the victim views an advertisement for investing in cryptocurrency while browsing the internet and completes an online form to receive further information. Then, within a day or so, they receive a phone call from fraudsters. In the second method, a connection is made between the victim and the fraudster, often through an online dating site, random text message or messenger application. The fraudster will then converse with the victim, sometimes for several days, before making a cryptocurrency investment pitch.
Regardless of the initial introduction method, the victim becomes convinced to invest and is led to believe they are investing in Bitcoin (a form of cryptocurrency). They are frequently provided with access to an investment website that shows their investment growing. This website, which is often a duplicate of a legitimate investment firm, is fraudulent and investments are being funnelled directly to the fraudster. Often, during the early stages of the scam, victims will be able to withdraw a small amount of funds from their accounts, building trust and paving the way for further investment.
Frequently, the fraudster will also request a copy of the victim’s identification documents, such as a driver’s license, or request remote access to the victim’s computer. Both of these requests have serious implications, as they can result in identity theft and further financial losses for victims.
Members of the public are advised to be cautious when it comes to scams such as this. #StopPauseThink and review the following safety tips to help prevent becoming a victim of cryptocurrency investment fraud:
- Be wary if someone you don’t know sends you a message out of the blue about a virtual currency investment opportunity.
- Don’t invest in virtual currencies on the advice of someone you've only dealt with online, whether it's an anonymous tipster on social media or a supposed romantic partner.
- If something seems too good to be true, it probably is. Pitches often claim that investing involves no risk and surefire profits.
- Ensure you are investing with a legitimate investment company. Conduct internet searches for the company and/or make a follow-up phone call to the company, as some fraudsters will use the name of a legitimate company.
If you have been a victim of a cryptocurrency investment scam and suffered a financial loss, please report the incident online at www.wrps.on.ca/onlinereporting or call our non-emergency number at 519-570-9777.
If you were contacted about this type of scam but did not experience a financial loss, please contact the Canadian Anti-Fraud Centre at 1-888-495-8501 or visit www.antifraudcentre-
For more information about scams and frauds, including cryptocurrency investment scams, in a variety of languages, please visit:
