The woman said she initially planned to invest $500 …
A local resident lost $15,000 in a cryptocurrency investment scam after being lured by promises of high returns through a website advertised on social media, according to the Trail and Greater District RCMP.
The night of Sunday, Feb. 23, a frontline RCMP officer responded to the victim’s report.
The woman said she initially planned to invest $500, but over a two-week period was persuaded to increase her investment to $15,000.
When she attempted to withdraw her funds, she encountered numerous obstacles and did not receive any money back.
Realizing she had been scammed, police report that she immediately ceased all further investment with the platform.
The situation escalated when, days later, the woman received an email threatening violence unless she sent additional money.
Fearing for her safety, she contacted the Trail RCMP for assistance.
An investigating officer advised the victim to block all communication from the scammers and refrain from engaging with anyone connected to the fraudulent platform.
The officer also recommended that she notify her financial institutions of the scam.
“Cryptocurrency scams often promise quick and easy riches,” said Sgt. Mike Wicentowich of the Trail and Greater District RCMP.
“I highly recommended avoiding cryptocurrency investments as they are often unregulated and do not provide any investor protection.”
Cryptocurrency is known to be a very high risk and speculative way to invest, he added.
“Most people will likely lose their invested money.”
Authorities remind residents to remain vigilant and consult reputable financial professionals before making any investments, particularly in cryptocurrency, which is known for its volatility and speculative nature.
Who investigates cryptocurrency theft and scams?
Investigating cryptocurrency theft and scams can involve multiple agencies and organizations, depending on the nature of the crime, the jurisdiction, and the scale of the scam.
Because cryptocurrencies operate globally and often cross international borders, collaboration between local, national, and international authorities is common.
In Canada, the RCMP investigates cybercrimes, including cryptocurrency-related fraud and scams.
Victims should report incidents to their local police force, especially if there are threats or extortion involved, as in the recent Trail case.
Specialized cybercrime units within the RCMP handle large-scale or organized cyber fraud cases.
The Canadian Anti-Fraud Centre (CAFC) is Canada’s central agency for receiving fraud and scam reports, including cryptocurrency scams.
Victims and potential victims are encouraged to report incidents to help track fraudulent activities across Canada.
Visit CAFC’s website: Canadian Anti-Fraud Centre, or phone: 1-888-495-8501.
What is cryptocurrency?
Cryptocurrency is a type of digital or virtual currency that uses cryptography (a form of secure communication) to secure transactions, control the creation of new units, and verify the transfer of assets.
Unlike traditional currencies issued by governments (like the Canadian dollar), cryptocurrencies operate on decentralized networks, typically using blockchain technology.
How does cryptocurrency work?
Ownership: Cryptocurrency is stored in digital wallets. Each wallet has a unique address and is accessed through private keys, which are necessary to authorize transactions.
Transactions: When you send cryptocurrency to someone, you use your private key to sign the transaction. This is then verified by network nodes through cryptographic processes and recorded on the blockchain.
Mining and staking: New coins are typically generated through “mining” (solving complex mathematical problems) or “staking” (holding and validating transactions on certain blockchains).
Popular cryptocurrencies include: Bitcoin, the first and most widely known cryptocurrency, created in 2009 by an anonymous entity known as Satoshi Nakamoto; Ethereum, known for enabling “smart contracts,” self-executing contracts with code-based terms; Ripple, Litecoin, and others, which offer features such as faster transaction speeds or improved privacy.