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By Connor Gunn

Police advising residents to be careful due to cryptocurrency frauds reported

Dec 8, 2021 | 3:09 PM

LETHBRIDGE, AB – The Lethbridge Police Service has put out a warning to the public regarding cryptocurrency scams that are being reported.

With very few reports of frauds involving cryptocurrency in previous years, so far this year police have investigated multiple complaints with a total of 18 victims who have been defrauded of over $800,000.

Police say criminals gain the victim’s trust by showing initial profits of 100 to 500 per cent and letting them withdraw small amounts so they’ll continue to invest – to more traditional scams involving social media platforms, texts, and calls where victims are informed they owe taxes to the CRA, have warrants for their arrest, etc. and are directed to transfer cryptocurrency to solve the issue.

LPS defined a cryptocurrency as a digital asset used as a medium of exchange.

“Unlike the Canadian or US dollar, there is no central authority that manages and maintains the value of a cryptocurrency. Strong encryption is used to secure transaction records and technology, called blockchain – a decentralized ledger of all transactions – makes the transfer of cryptocurrency difficult to trace, providing fraudsters with protection and anonymity from their victims,” the LPS release reads.

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With a growing number of different cryptocurrencies, it may be hard to tell which ones are real.

The LPS is advising people to do the following steps if they are scammed and remind people that “if something sounds too good to be true, it is.”

How to protect yourself:

• Be careful when sending cryptocurrency. Once the transaction is completed, it is unlikely to be reversed.
• Be wary of online and social media advertisements promising returns on crypto assets and be suspicious if you are contacted out of the blue and offered an investment opportunity. Receiving a random/unsolicited, text, call or social media message about a lucrative investment opportunity should not be the starting point in which you invest or provide funds.
• Conduct your own research and ensure you know who you are dealing with! Retain your cryptocurrency with well-known and reputable exchanges.
• Using a decentralized platform or a company outside of Canada may carry certain risks – such as the ability for authorities to conduct any follow up. Be sure you understand what risks you may be taking so an informed decision can be made. Do not blindly invest because of a fear of missing out.
• Use strong and unique passwords for different online accounts. In the case of a data breach, fraudsters may try using credential stuffing tactics to access your cryptocurrency wallet.
• Consider using multi-factor authentication to secure your accounts and authorize transactions.
• Recognize the warning signs of common scams. For example, police or government authorities will not request your banking details and you cannot have an arrest warrant vacated by sending money, gift cards or cryptocurrency.
• When in doubt hang up, don’t click any links and don’t respond to any messages. Contact the business, government agency, or person directly – from a known source or by looking up the number/contact information online, from the legitimate website.

Visit https://www.antifraudcentre-centreantifraude.ca to learn more about fraudulent scams.