Edmonton police are warning residents about a rise in cryptocurrency scams after a significant spike in reports last year.
The Edmonton Police Service’s Cyber Crime Investigations Unit identified 87 cryptocurrency investment complaints with a loss of more than $5.29 million in 2021.
In 2020 there were 21 complaints with a loss of around $270,000 and in 2019 only 4 occurrences were reported with a loss of roughly $84,000, according to EPS.
Police noted that a number of the scams began online as a “romantic connection.” Those connections then turned into cryptocurrency discussions and monetary transfers.
“We know online dating is extremely common,” Det. Dana Gehring, with the Cyber Crimes Investigations Unit, explained.
“We want to ensure Edmontonians know the signs of a potential romance investment scam and understand that dating sites and social media should not be where you find cryptocurrency investment tips.”
Here’s how romance cryptocurrency scams work, according to EPS:
- Fraudsters will approach a victim online and claim to live in Canada or near Edmonton. Police said geographic separation is a common romance tactic.
- The conversation will move off the dating platform and onto a messaging app.
- The relationships are only through text/messaging apps, no video or in person meetings.
- The fraudster would then start a conversation about cryptocurrency.
- Victims were initially directed to a legitimate trading platform. But, once the trust was built, the scammer would move them to a new fraudulent site.
- Many people were asked to send personal information such as passports and health care cards.
- Victims initially started with transfering smaller amounts of money but would increase investments once the scammer gained their trust.
- After the victim was satisfied with their quick returns and tried to withdraw funds, their request would be denied and their accounts locked.
“We quickly trust strangers online, especially if we feel an emotional connection to them,” Gehring said. “So if that potential partner appears to be an expert and guarantees quick, high returns, it sounds perfect. That should be the first red flag, investments aren’t perfect.”
How to protect yourself from scammers:
- Search for the phone number and physical address you’ve been given to confirm it’s legitimate.
- Call them or initiate video chats. Don’t send them personal information or money.
- Don’t switch from the original dating platform to another messaging app.
- Tell your family and friends about the new connection to get a second opinion.
- Review the information you’re sharing publicly. Scammers will review online profiles to gain your trust.
- There are no immediate high returns with a high-risk investment like cryptocurrency.
For more information on cryptocurrency and investments scams, click here.
