The Lethbridge Police Service was part of an effort to identify funds of cryptocurrency fraud victims. (Photo: Lethbridge News Now)

By David Opinko

Lethbridge Police helps to identify hundreds of cryptocurrency fraud victims

Mar 20, 2024 | 10:22 AM

LETHBRIDGE, AB – The Lethbridge Police Service (LPS) says it was one of the many law enforcement agencies that is working to assist the victims of a major scam.

They collaborated with the Calgary Police Service (LPS) in its investigation called “Operation Disruption.”

Together, the detectives identified more than 770 victims of cryptocurrency fraud, including 119 Canadians, with an estimated combined loss of $59 million.

Agencies including CPS, LPS, RCMP, Delta Police Department, Homeland Security Investigations, and cryptocurrency exchanges NDAX and Binance discussed proactive policing and disruption strategies to combat fraudulent activities.

One of the scams they focused on is called approval phishing, where romance and investment scammers coerce users into approving malicious blockchain transactions.

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“Scammers using this tactic will attempt to build trust with victims by offering convincing information on a range of investment opportunities that promise a large return. The scammer will often connect with victims online, through social media, apps or pop-up ads that require the victim to grant approval for a blockchain transaction,” reads a media release from CPS. “This approval then grants the scammer access to specific tokens within a victim’s digital wallet, which ends in unauthorized fund withdrawals.”

At the conclusion of the workshop, the agencies worked to notify the fraud victims, hoping to prevent further victimization.

The CPS offered the following tips for anyone involved in blockchain transactions:

• Do not send money to unknown individuals you have interacted with online.
• Visit the Alberta Securities Commission website for cryptocurrency investment tips.
• Visit the Chainalysis website for more details on ‘approval phishing’ scams.
• Report financial loss to police
• If you have received a fraudulent text message, email or phone call but have not sustained a financial loss, please report it to the Canadian Anti-Fraud Centre.

READ MORE: Lethbridge News Now

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