The Nipissing West OPP says that many schemes are being used to defraud the public and businesses and if you receive any unsolicited communication by any means asking for money, be cautious and suspicious.
Crypto Investment Scams: These scams involve Canadians investing in cryptocurrency after seeing a deceptive advertisement. It typically involves victims downloading a trading platform and transferring cryptocurrency into their trading accounts. In most cases, victims are not able to withdraw their funds. Many of the trading platforms are likely fraudulent or controlled by fraudsters.
Variations of Crypto Investment Scams
- The victim is approached on a dating or social media website. In some cases, the scam starts as a romance scam and quickly turns into an "investment opportunity". Because suspects have gained the victim's trust, it can lead to a high dollar loss for the victim.
- In some reports, suspects have compromised the victim's friend's social media accounts. Because the victim believes they are communicating with a friend or a trusted person, they are easily convinced to take advantage of the "investment opportunity."
- The suspect calls a victim directly and convinces them to invest in cryptocurrency. In many cases, the suspect asks for remote access to the victim's computer. The suspect shows the victim a fraudulent crypto-investing website and convinces the victim to invest based on the potential exponential growth of the investment. In many cases, the victim will invest over a long period and, in the end, will realize that the funds can not be withdrawn.
- An email is received by the victim offering a crypto investment opportunity.
- The victim comes across an advertisement on social media. After the victim clicks on the ad and provides their contact information, suspects contact the victim by telephone and convince them to invest.
Warning Signs - How to Protect Yourself
- Be careful when sending cryptocurrency. Once the transaction is completed, it is unlikely to be reversed.
- As proceeds of crime and anti-money laundering regimes around the world create regulatory frameworks that treat businesses dealing in cryptocurrencies as money service businesses, Canadians need to do their research to ensure they are using reputable and compliant services.
- If you receive a suspicious message from a trusted friend, reach out to them through a different means of communication to confirm that it is them.
- Verify if the investment companies are registered with your Provincial Securities Agency or the National Registration Search Tool, www.aretheyregistered.ca
- Prior to investing, ask for information on the investment. Research the team behind the offering and analyze the feasibility of the project.
- Be weary of individuals met on dating or social media who attempt to educate and convince you to invest in cryptocurrency.
- Beware of fraudsters asking you to open and fund new crypto accounts. They will direct you to send it to the wallets they control. Don't!
"Awareness is key when it comes to recognizing frauds and scams. There are so many types out there but the better educated the public are, the less chance they have to fall victim to these ruthless scammers. Don't keep it a secret - talk to a friend, family member, neighbour, or police before making any decisions to send money to people you don't know", says Nipissing West OPP Area Crime Supervisor Detective Sergeant Robert Labelle.
If you believe that someone is posing as a fraudster on the phone, hang up. Also, you can report it through the Canadian Anti-Fraud Centre at 1-888-495-8501, or www.antifraudcentre-
