Victim of cryptocurrency fraud was targeted for ‘recovery’ scam, Nanaimo RCMP say

A Bitcoin logo is displayed on an ATM in Hong Kong, Thursday, Dec. 21, 2017. (AP Photo/Kin Cheung, File)

A Nanaimo resident who lost $5,000 in a cryptocurrency scam late last year was later targeted with a fraudulent offer to recover the lost funds, according to local Mounties.

The scam began with “an unsolicited text message advertising an at-home job opportunity involving buying and selling stock using cryptocurrency,” Nanaimo RCMP said in a news release Wednesday.

Police said the victim deposited $5,000 through a cryptocurrency ATM “to take advantage of the opportunity.”

“After the payment was made, communication with the so-called employer abruptly ended and the funds were lost,” the release reads.

Earlier this year, the victim came across “what appeared to be an RCMP-branded public service announcement” encouraging people to report frauds like the one the victim had experienced, police said.

After completing a form, the victim received a call from a man who identified himself as “Sam Peterson” from a Toronto-based law firm, according to police. The caller claimed to have found two cryptocurrency wallets in the victim’s name and offered to assist in recovering approximately $60,000 in purported “profits.”

“The victim became suspicious and confirmed that the caller was not registered with the Law Society of British Columbia or Ontario,” the release reads. “The website provided by the caller was also found to be non-functional when checked by police.”

Police advised the victim to report the incident to the Canadian Anti-Fraud Centre, their bank and credit reporting companies.

“The RCMP does not contact individuals about discovered cryptocurrency accounts, partner with private firms to recover lost funds, or request any form of payment to investigate fraud,” said R/Const. Gary O’Brien, in the release.

“Any communication suggesting otherwise is fraudulent.”