Vancouver police warn of increase in cryptocurrency scams
Posted March 19, 2021 10:22 am.
Last Updated March 19, 2021 10:24 am.
VANCOUVER (NEWS 1130) – If you deal with cryptocurrency, Vancouver police have a warning for you.
The VPD says it’s noticed more scams lately, adding some victims have lost close to $2 million in just one week.
“Investigators believe this crime is underreported as victims often feel shame or embarrassment, making them reluctant to come forward to police,” said Const. Tania Visintin.
Cryptocurrency — like Bitcoin — is essentially a digital or virtual form of money. Fraudsters who target cryptocurrency are often very difficult to identify and find, usually because they’re based overseas and use “sophisticated, untraceable VPNs,” according to police.
Investigators say predators will try to exploit people through emotions like greed or love, noting victims are often “lured in with the idea that they will be a part of an opportunity to make money or in other cases, they will be doing a friend or romantic interest a favour.”
#VPDNews: Vancouver Police are warning the public about a surge in cryptocurrency scams after local victims lost close to $2 million over a one week period alone. https://t.co/X2UJjL5vmk pic.twitter.com/4uVmYv2SEN
— Vancouver Police (@VancouverPD) March 19, 2021
In an investment scam, the VPD says people are often approached through social media: they are “groomed” over time and develop a bond with the scammer. That’s when an investment opportunity is proposed, involving a fraudulent cryptocurrency company.
Once the person makes an investment, police say they’ll see returns “which are fabricated.” It’s when the victim tries to withdraw their money that they find out they’re unable to, and that communication with the fraudster ends.
In the case of a romance scam, the VPD says the victim is once again groomed over time, before the fraudster indicates a romantic interest. The victim is convinced to invest in cryptocurrency, all the while being fed excuses by the scammer as to why they can’t meet in person. The victim ends up investing their money in a fake company.
Police are reminding everyone to be cautious and to report anything that may be suspicious around personal money transfers to people they don’t know or people they’ve met online.
