Ottawa Valley resident loses nearly $10,000 in crypto scam, OPP says

Ontario Provincial Police are warning residents in the Ottawa Valley of a cryptocurrency scam circulating in the area, after an elderly resident lost almost $10,000.

Police say the victim was contacted by phone and coached to deposit money into a cryptocurrency ATM with the promise of a “high investment return.”

“Which never materialized.”

Police released no other details about the alleged scam, including when it happened or where in the Ottawa Valley the resident lived.

“These scams can also involve fraudsters setting up a fake cryptocurrency investment company. These companies can have a very convincing online presence with a professional-looking website, social media accounts and reviews and testimonials by ‘satisfied customers,’” the OPP said.

“Once they lure potential victims, they will use high-pressure sales tactics and the promise of high returns to convince the victims to invest ever-increasing amounts of money.”

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The OPP offers the following tips to avoid being a victim to a cryptocurrency scam:

• Be suspicious of any investment that promises abnormally high returns in a short amount of time.
• Do your research: search online for scam complaints related to the company, and don't limit yourself to just Canada, many of these companies operate internationally.
• Search the business registration authority in whatever country the company claims to be located in to ensure that it is actually a properly registered business.
• If they claim to be associated with a legitimate company, such as a well-known investment firm or cryptocurrency exchange, contact this company to see if that relationship actually exists.
• Never share the private keys for your cryptocurrency addresses or the recovery seed phrases for your cryptocurrency wallets with anyone.
• If you store these keys on an internet connected device, keep it in a password-protected folder or document.
• If you have an account with a cryptocurrency exchange, do not store your cryptocurrency long term in your exchange wallet. Store your cryptocurrency in a separate address that only you control until you need to convert it to another cryptocurrency or fiat currency.
• Never allow remote access to your computer, phone or electronic devices.

The OPP says if you are, or suspect you may be, the victim of a cryptocurrency investment fraud, contact your local police, notify your bank and save any information that may assist the investigation, including bank account numbers that funds were transferred to.