2 victims lost $1.3M combined in cryptocurrency scam, Vancouver police say

Representations of cryptocurrencies including Bitcoin, Dash, Ethereum, Ripple and Litecoin are seen in this police illustration. (File photo/Supplied/Royal Canadian Mounted Police)

Authorities are warning the public about an increase in cryptocurrency scams, while highlighting a pair of unfortunate incidents that cost the victims more than $1.3 million combined.

The first was reported to the Vancouver Police Department on Christmas Eve.

Police said that victim, a 55-year-old woman, had spent months talking with someone who posed as an investor and promised her high returns if she contributed to an investment pool.

“The victim trusted the suspect and believed she was contributing money to a legitimate investment,” the department said in a news release Friday.

But after the woman had sent a total of $565,000, her contact—who had mostly communicated with her through the apps WeChat and Whatsapp—suddenly stopped returning her messages, police said.

The second victim, an 82-year-old man, came forward on Jan. 10. He had responded to an online advertisement that used a picture of Prime Minister Mark Carney, and ended up sending $800,000 in wire transfers over a period of six months before realizing he’d been defrauded.

In that case, authorities said the victim communicated with the scammers through the encrypted messaging app Telegram.

In a statement, Vancouver police spokesperson Megan Lui urged anyone who suspects they have fallen victim to a cryptocurrency scam to come forward right away so an investigation can begin.

She also acknowledged it is unlikely victims can get their money back.

“Cryptocurrency crimes are challenging to solve, because scammers often prey on peoples’ trust and vulnerability, with promises of high investment returns,” said Lui.

“The likelihood of recovering someone’s money after they’ve been scammed this way is very low.”

The Vancouver Police Department said people can protect themselves by checking with a trusted family member or friend before sending money to someone they don’t know, and to always research prior to investing any amount of money.

Individuals should also be wary of promises of high returns.

“If it sounds too good to be true, it usually is,” the department said.