April 9, 2024, PEI RCMP Headquarters – Islanders reported $193,100 in crypto currency scam losses to the RCMP in 2023, dozens of cases were reported and in ten cases over $4000 was taken. Here are what some of these frauds can look like:
Bitcoin payment: Scammers will ask victims to make payments to them through bitcoin. They can give instructions on how to find a bitcoin ATM and will ask that bitcoin be sent to their wallet.
Investment opportunity: Scammers can advertise or take over social media accounts of people you know, and tell you about how much money they made on crypto currency. Fraudsters will offer high rates of return in a short period of time. Victim will lose their investment and sometimes their personal and financial information.
Romance scam: Fraudsters earn victims trust on dating apps, posing as a successful crypto currency investor. They will ask victims to transfer cryptocurrency from a legitimate exchange and transfer it to a crypto address controlled by a fraudster.
Job opportunity: Fraudsters post fake jobs that require applicants to open bitcoin accounts. Victims will have their money stolen from these accounts after they make deposits.
How to protect yourself:
If someone is asking to be paid in bitcoin this is a red flag that this could be a scam.
If someone is promoting huge gains, opportunities or no risk investment, this is a red flag.
Avoid companies that don't have established reputations. Note that some scammers can generate positive reviews on their crypto exchange platforms to lure victims into thinking that people have had positive experiences.
Ask yourself how you heard about this opportunity, if it came from online it most likely is a scam.
"The PEI RCMP have officers specifically trained in investigating crypto currencies but we would much rather see people protected from being a victim before any loss occurs. Before you take any action, stop and ask yourself could this be a scam." – Cpl Gavin Moore, PEI RCMP Media Relations Officer.