Be wary about sending money as Bitcoin

Hey there, time traveller!
This article was published 11/03/2019 (2397 days ago), so information in it may no longer be current.

Bitcoin, the most popular of the more than 1,300 cryptocurrencies, is currently one of the biggest newsmakers in the finance world.

Unfortunately, for all the good that has come from Bitcoin, there have been negative stories of its use in scams.

In Manitoba alone, a large amount of people have fallen victim to schemes including romance scams, CRA scams and job opportunity scams wherein fraudsters are having victims send them money in the form of Bitcoin. In 2018, such fraudsters obtained $6.6 million from innocent Canadian victims.

Each scam relies on the fraudster gaining the trust of the victim and, depending on the scam, the victim’s desire to obtain something for themselves or to provide assistance to another person. When a victim agrees to send the funds, the fraudster directs them to send the money from a Bitcoin automated teller machine to the fraudster’s digital wallet. Once the money is sent to the fraudster’s digital wallet that money cannot be retrieved due to how Bitcoin transactions work.

To protect yourself from scams involving Bitcoin or cryptocurrency payment, there are several rules you should follow:

• Never send money through a Bitcoin ATM to a digital wallet for someone you do not know or have not met in person;

• Never pay for outstanding bills by sending money through a Bitcoin ATM. Government agencies, including the CRA, do not accept Bitcoin as a form of payment;

• Never transfer funds you have received by cheque or e-transfer until the funds have officially cleared your account. This can take several days or more. If there are issues with a cheque or an e-transfer, it can take weeks before it is returned as fraudulent;

• Before considering paying any person or business through a Bitcoin ATM, it is best to familiarize yourself with what Bitcoin is and how it works. Research on the internet can help you detect potential scams involving Bitcoin or other cryptocurrency.

A helpful resource is the Canadian Anti-Fraud Centre. It has up-to-date information about new trends in frauds and scams, including those that involve Bitcoin payment.

For more information visit www.antifraudcentre.ca.

• Protect yourself from identity theft! A free shredding event will be held at St. Vital Centre and Polo Park on Thurs., March 28 between 11 a.m. and 2 p.m.  Find us at the Shred-It truck (maximum of two bags or boxes per person).

— Courtesy of Winnipeg Police Service