Cryptocurrency investment scam warning from OPP

ESSEX COUNTY – The Essex County Ontario Provincial Police (OPP) is warning local residents about cryptocurrency investment frauds.

The Essex County OPP received a complaint from a Leamington resident who lost over $25,000 to a cryptocurrency investment fraud.

Investment frauds represented $163 million in losses reported to the Canadian Anti-Fraud Centre in 2021, versus $33 million in reported losses in 2020. With cryptocurrency payments to fraudsters jumping to $77 million in reported losses 2021, versus $23 million in reported losses in 2020.

Investment scam reports received by the OPP and the CAFC include initial coin offerings, Ponzi schemes, franchise opportunities, futures trading, multi-level marketing opportunities, mortgage investment opportunities, and pump and dump schemes. In most of these cases, the investment opportunities offer higher than normal, or true monetary, returns which often result in investors losing most, or all, of their money.

The majority of the investment scam reports involve Ontario residents deciding to invest in cryptocurrency after seeing a deceptive advertisement on social media. It typically involves victims downloading a trading platform and transferring cryptocurrency into their trading account. In most cases, victims are not able to withdraw their funds. It is very likely that many of the trading platforms are fraudulent or controlled by fraudsters.

In addition to crypto trading scams, the OPP also receives reports on suspected fraudulent Initial Coin Offerings.

Warning signs are:

• Investment opportunities with higher than normal returns.

• Unsolicited telephone, email or social media investment offers.

• Displays of urgency so you don’t miss out.

• An individual met on a dating or social media website who quickly attempts to convince you to invest into cryptocurrency.

• A friend tells you about a cryptocurrency investment opportunity via social media or email.

• Telephone calls from crypto investment companies.

• Fraudulent ads posted on the internet or social media.

• Request to transfer your crypto investment to an alternate crypto address.

If you do fall victim to a fraud or know someone who has, contact the local police service to report the crime, and also report it to the Canadian Anti-Fraud Centre (CAFC). The CAFC collects information on fraud and identity theft Canada-wide. Contact the CAFC by phone at 1-888-495-8501 or online by way of the Fraud Reporting System (FRS), even if a financial loss did not occur.