Theft of $70M in crypto coins thwarted after international scammers target victims in Canada

Investigators in Ontario and around the world have stopped the theft of more than $70 million in crypto coins and froze another $24 million in funds after victims in Canada and over a dozen other countries were targeted by scammers.

The OPP says some 14 victims and over 2,000 cryptocurrency wallets from Canada, the U.S. and 12 other countries were identified in an investigation into what police call “Approval Phishing” scams — a specific type of fraud that’s popped up in the cryptocurrency industry.

The scams see victims tricked into granting access to their cryptocurrency accounts by fraudsters posing as trusted services, police say.

But instead of requesting a wallet password, scammers send out a fake request asking the user to “approve” access to their wallet.

That approval by the victim “unknowingly gives control of their funds to the third party,” investigators say.

Police in Ontario launched an operation called Project Atlas last month to fight organized cryptocurrency frauds and help victims recover stolen funds.

Investigators now say they have stopped more than $70 million in cryptocurrency from being stolen by cybercriminals and froze over $24 million in fraudulent losses.

Det. Sup. Mike Bickerton with the OPPs Cyber-Enabled Fraud Team says scammers use manipulative social media ads, professional-looking websites, social engineering and “increasingly complex technology” to deceive victims.

“Cryptocurrency investment frauds continue to devastate victims in Ontario and around the world, with these crimes becoming more sophisticated each year,” he said in a statement and urged Ontario residents “to learn about cryptocurrency investment frauds and share this knowledge with loved ones to help protect them.”

Crypto investment scams often start with ads on social media, dating sites, or search engines that promote exciting investments with promises of quick profits, police say.

Fake approval requests can often mimic legitimate apps and services to make them look authentic to the user.

Investigators are urging anyone who believes they may have fallen victim to the scam to immediately stop communicating with suspected fraudsters over texts, emails or calls, and to contact police.

You can also use the Etherscan Token Approval Tool to locate, review and revoke any pending approvals, police say.

Anyone with information about this incident can contact the OPP by calling 1-888-310-1122. Anonymous tips may also be provided to Crime Stoppers by calling 1-800-222-8477 or visiting www.ontariocrimestoppers.ca.

When you contact Crime Stoppers you stay anonymous, never have to testify, and could receive a $2,000 reward.

For more information on how to protect yourself from cryptocurrency investment scams visit www.OPP.ca.