With the rise of cryptocurrency comes the rise of fraud and scams.
Between fall of 2019 and the end of 2021, the Edmonton Police Service (EPS) Cybercrimes Unit received over one hundred fraud reports related to crypto, with the total cost reported to be $5.6-million dollars.
The average victim lost $50,000 to the scam, while one individual lost a total of $1-million.
In most cases, victims were convinced to invest money through a seemingly legitimate website or app. The scammer manipulates the website to look like the victim is making gains in their investment. After investing a larger sum, the website or app becomes inactive and the money invested is gone.
“Sadly, we encountered several complainants who lost their life savings to this scam,” said Det. Dana Gehring. “While we always aim to apprehend those responsible, our best tool with this type of fraud is to educate on prevention.”
If citizens are interested in online cryptocurrency investing, EPS recommends to being mindful and cautious of where you're investing.