Peterborough Police Service Issue Warnings After Increase of Cryptocurrency Scams
/The Peterborough Police Service has warned residents to be aware of cryptocurrency scams after increased reports.
Last year, victim losses from cryptocurrency-based fraud reported to the Peterborough Police Service were over $550,000.00.
These frauds come in various forms but investment scams are becoming increasingly prevalent according to the police.
These frauds typically begin with an advertisement on Facebook, Instagram, or YouTube. They make it appear that a public figure or celebrity is promoting a crypto-currency trading platform.
The victims are then directed to an official-looking website where they provide their contact information. They are then contacted by a ‘representative’ of the company who walks them through setting up an account. The victim is directed to fund the account in Bitcoin or other crypto-currency. The victim is then shown that their trading account appears to be doing very well and is encouraged to transfer more crypto-currency.
When the victim attempts to withdraw funds, they are locked out of their account and the company representatives stop communicating.
Be mindful of the following when dealing with crypto-currency:
If something appears too good to be true it probably is
Unlike frauds involving bank transfers crypto-currency frauds are extremely difficult to trace to determine who has the victim’s funds
Be wary of investment advice from an unknown online company
Be mindful that anything you see online can be faked
