Trail RCMP Alert Public to Cryptocurrency Scam After Local Woman Loses $15,000
Trail RCMP Investigate Cryptocurrency Scam After Resident Loses $15,000
Trail RCMP are investigating a cryptocurrency scam that defrauded a local woman of $15,000.
On February 23, just after 5 p.m., a Trail resident reported that she had joined a cryptocurrency exchange website after seeing an advertisement on social media. Initially planning to invest around $5,000, she was persuaded to increase her investment over the following two weeks.
“Cryptocurrency scams often promise quick and easy riches,” said Sgt. Mike Wicentowich of the Trail RCMP.
When she attempted to withdraw her funds, the woman discovered she could not access her money. Shortly after ceasing contact with the website, she received a threatening email warning of violence if she did not comply with further demands.
The responding officer advised her to immediately contact her financial institutions and cut all ties with those involved in the fraudulent scheme.
Cryptocurrency scams have been on the rise across Canada. In May 2024, the Canadian Anti-Fraud Centre (CAFC) reported that Canadians have been losing millions to crypto fraudsters. In 2023, investment fraud losses reached a record $309.4 million, with scams originating from social media accounting for $172 million.
To protect against crypto fraud, the CAFC recommends the following precautions:
- Be cautious of unsolicited messages on social media or “wrong number” texts, especially if the sender attempts to build a relationship.
- Avoid investing based solely on advice from online acquaintances. Instead, consult with registered financial professionals.
- Be skeptical of anyone online encouraging cryptocurrency investments or directing you to specific platforms.
- Do not trust promises of high, fast, and low-risk returns.
- Report suspected investment fraud to the Canadian Investment Regulatory Organization (CIRO), CAFC, and local authorities.
- Stay informed and cautious to avoid falling victim to investment and romance scams.
For additional tips, visit the CAFC and CIRO websites.
“I strongly advise against cryptocurrency investments, as they are often unregulated and lack investor protection,” Sgt. Wicentowich warned. “Cryptocurrency is highly speculative and risky, and most people are likely to lose their money.”
