Toronto Police Warn of Cryptocurrency Scams as Losses Reach $200 Million
A staggering number of Canadians have fallen victim to cryptocurrency scams, with losses reaching a whopping $200 million in just six months. The Toronto Police Financial Crimes Unit has received over 10,000 reports of fraud since May, with the majority being related to cryptocurrency schemes.
Victims’ Stories
According to Det. David Coffey, victims are essentially handing cash to someone anonymously over the internet, making it nearly impossible to recover lost funds. “It’s really, really difficult,” he said. “Once that money is deposited…it’s received, there’s no way of getting it back.”
One victim, Sharon Doughty, lost $250,000 after her 74-year-old mother was approached by fraudsters who promised high returns on investments. The scammers even convinced her mother to take out loans and liquidate retirement assets. When Doughty’s mom tried to withdraw her money in December 2021, she fell victim to a recovery scam, losing an additional $80,000.
The Emotional Toll
“It’s affected us greatly, not just financially, but emotionally,” said Doughty. “Our family dynamic will be changed forever.”
Experts’ Advice
Experts warn that victims are often desperate and willing to do anything to get their money back. “They’re never satisfied,” said Coffey.
Financial crime expert Vanessa Iafolla advises taking precautions to avoid falling victim to scams. She recommends only investing in something you understand exactly, saying, “If you aren’t comfortable explaining it to three other people, don’t invest in it for yourself.”
What You Can Do
- Only invest in something you understand exactly
- Be cautious of offers that seem too good to be true
- Research the company and read reviews before investing
Toronto Police Service Advice
The Toronto Police Service urges anyone who has been scammed to contact their financial institution immediately and file a police report as soon as possible.
Staying Positive
As cryptocurrency scams continue to rise, it’s crucial for Canadians to be vigilant and take steps to protect themselves from falling prey to these schemes. Doughty is trying to stay positive despite the emotional toll of the scam. “My parents are still healthy and we’re all alive and I’m thankful for that,” she said.
Conclusion
As the number of cryptocurrency scams continues to rise, it’s essential for Canadians to be aware of the risks involved and take steps to protect themselves. Remember: if an investment opportunity seems too good to be true, it likely is. Always do your research and seek professional advice before investing in anything.