Ontario man lost $100k in cryptocurrency scam
Published October 12, 2023 at 10:52 am
An Ontario resident reportedly lost $100,000 in a cryptocurrency scam.
The victim, from Huron East in Ontario, reported losing $100,000 to the fraud, OPP said in a press release.
The resident got a text message from a person they didn’t know and started investing in a cryptocurrency investment website referred by the unknown person, police said.
“The victim initially invested $500 and was promised certain profits on their investment,” police said in the release. “The victim then invested an additional $100,000.”
The victim sent their money to an internet service, which transferred the victim’s Canadian currency into cryptocurrency.
The fraudsters eventually “froze” the investment and ceased all communication with the victim. The victim realized they had been scammed and called the police.
Unfortunately, cryptocurrencies operate independently of a central bank and are currently unregulated in Canada.
The Canadian Anti-Fraud Centre warns that there isn’t the protection from fraud when using cryptocurrencies, as there is when using a credit card.
Around $530 million was reported lost to fraud in Canada in 2022, according to the Canadian Anti-Fraud Centre. But it is estimated that only five to 10 per cent of victims report scams and frauds.
For more information on cryptocurrency scams, see the Canadian Anti-Fraud Centre page here.
Police suggest the following tips to avoid scams:
- Don’t give out your personal information (name, address, date of birth, SIN, banking credentials).
- Don’t accept friend requests from people you do not know.
- Don’t invest your money in platforms provided by people you don’t know.
- Be careful who you share images with. Suspects will often use explicit pictures to extort victims into sending more money.
- Protect your online accounts.
- Get more than one quote for home repair work and never feel pressured.
- Never send money to someone you haven’t met.
- Don’t respond to text messages from phone numbers you do not recognize.
- Learn more tips and tricks for protecting yourself.