B.C. RCMP crack down on cryptocurrency scammers

The B.C. RCMP has shut down a number of online cryptocurrency scam operations.

The RCMP’s Federal Policing Cybercrime Operations Group was tipped off to a number of investment platforms that were defrauding British Columbians with promises of immediate high returns on investments.

The fraudsters were attracting mainly novice cryptocurrency investors through enticing online and social media ads.

The scam involved having victims use a third-party investment platform, an app that could be downloaded to a personal device or loaded onto a computer, to exchange their cryptocurrency. While many of the victims did not get involved in the process right away, persistent calls from a company representative encouraged them to invest.

It wasn’t until later that the victims realized the platform was not being used to grow their profits, but instead it transferred the savings into a fraudulent account or defrauded them through the app’s access to an online wallet.

British Columbians who fell victim to the scam reported the fraud to the RCMP, and the Cybercrimes Operations Group took over the investigation. The RCMP were then able to identify and dismantle eight websites associated with the scam, and the investigation into the virtual criminal network is ongoing.

“While law enforcement agencies adapt and navigate through the often uncharted and unregulated territory of combatting cybercrime, prevention continues to be the most important first course of action,” said Superintendent Bert Ferreira, Officer in Charge of Federal Serious and Organized Crime – Border Integrity program in B.C.

The RCMP warn residents to be wary of any investment opportunity that may seem to good to be true, and to verify the validity of an investment through a legitimate source like the British Columbia Securities Commission.

Anyone who has been a victim or a target of a scam is advised to contact their local police and to file a report to the Canadian Anti-Fraud Centre online or at 1-888-495-8501. Anyone who has lost money to a scam is advised to contact their financial institution, alert their trusted cryptocurrency exchange, and to stop all transactions on their account.