Investment in cryptocurrency is risky business

Hey there, time traveller!
This article was published 19/03/2025 (203 days ago), so information in it may no longer be current.

As blockchain technology becomes part of mainstream society and receives an increasing amount of media coverage, its use by fraud actors to move stolen funds around the globe with little oversite also continues to grow. Financial crime investigators have seen crypto currency integrated into many common fraud schemes including investment scams, emergency scams, romance scams and employment scams.

Investment scams are the most prevalent schemes, as victims are groomed into sending funds via cryptocurrency to fraudulent websites over longer and longer periods. The funds are received by the scammers but are never put into any investment platform and are used for their own purposes. The fraud actors will then mirror the funds sent by the victims on the fraudulent website, showing fantastic growth, and thus enticing the victims to send more cryptocurrency. The schemes break down when victims need to withdraw funds and are then told they need to pay additional taxes and insurance fees. The victims send more funds to cover the required payments but there is always another fee to pay, and they cannot retrieve their funds.

Regardless of the fraud that you are being targeted by, keep the following in mind when dealing with cryptocurrency:

• A ‘friend’ you made on the internet, social media or other platform is still a stranger. Do not base your financial well-being on the advice of a stranger;

• Ads created using artificial intelligence (AI) and featuring celebrities are used to lure victims and create credibility for the fake platforms;

• Do not allow anyone access to your computer or phone to assist you in setting up an account with a cryptocurrency exchange. While there are many remote access tools available, AnyDesk is frequently used by fraud actors to take control of victims’ devices. This gives them access to any information on your computer, including the log-in information for your cryptocurrency account. While they have access to your computer, they can also install programs that give them permanent access to your device;

• Cryptocurrencies and blockchain technology were embraced by users because of the anonymity and autonomy of the system. The process does not rely on traditional financial institutions to act on your behalf;

• Unlike traditional banking, once you conduct a cryptocurrency transaction, you are unable to stop the transaction or recall the funds;

• If you deposit cash into a cryptocurrency ATM and the funds are converted into a digital currency, you no longer have a right to the cash you deposited into the ATM;

• If you receive a quick response code (QR Code) from the fraud actor and use it to send money via a cryptocurrency ATM, the funds will go to the address represented by the code and not necessarily to the investment platform account you were told would receive the funds,

• Be wary of scanning unsolicited QR codes, as they can direct your device to access any sort of software, including malicious websites that can access your data.

Please refer to the Canadian Anti-Fraud Centre website for further information on these scams and others: antifraudcentre-centreantifraude.ca