Cryptocurrency fraud deal
Photo: File
A Nelson man was the victim of an online cryptocurrency fraud deal this week.
A Nelson man’s suspicions over a cryptocurrency deal worth $150,000 were confirmed by police this week.
A Nelson resident contacted the Nelson Police Department (NPD) earlier this week after suspecting that he was being defrauded in a cryptocurrency scam.
“These types of scams can be elaborate and very convincing,” said NPD special Const. Silk Edwards in a statement. “Being educated on the techniques that scammers use is the best defense against fraud.”
The scam began several months ago when the victim clicked on a Facebook link to what appeared to be a legitimate investment website called WildBearUnion.net. Over time, he regularly spoke with company representatives who provided investment advice.
Starting with smaller sums, he eventually invested nearly $30,000 in cryptocurrency over two months. The situation escalated when the man was told that his investment had grown to be worth $150,000 but that the company would need a 10 per cent commission fee to access the funds.
Growing suspicious, the man contacted police. Investigators determined that WildBearUnion was no longer active online. None of the supposed company representatives could be located, and multiple review sites had flagged it as a scam.
“Because it isn’t a regulated central authority, once funds are converted into cryptocurrency, they are untraceable and virtually impossible to recover,” Edwards explained.
Fraudsters can disguise websites and phone numbers to appear legitimate.
“Always conduct thorough research before making financial investments,” said Edwards.
- For more information on scams and fraud prevention, contact the Nelson Police Department or visit the Canadian Anti-Fraud Centre website.