Increased incidents of online investment scams are being reported in York Region, police said.
“Fraudsters have been targeting victims through messages on social media, unsolicited email, dating sites and online advertisements,” York Regional Police said in a media release.
The victims are then presented with an investment opportunity with the fraudsters in many cases claiming to be cryptocurrency traders and promising large returns.
Police warn that they will often use fake names or impersonate companies to look legitimate.
YRP said the scammers will send people friend requests on social media, then reach out to build their trust. They’ll ask victims to download an app and get them to invest money through that app or transfer funds, which police say victims likely will never see again.
“If someone is asking you to send cryptocurrencies, be very cautious. These online investments and investors are not [licensed] or regulated in Ontario,” YRP said.
People are advised to research any potential investments online, talk with friends and family about them, or speak with a financial advisor.
“If a situation feels suspicious, trust your instincts never invest in something you do not fully understand or with people or businesses that you cannot confirm are legitimate. Do not receive money transfers or deposits from unknown persons,” police said. “We encourage citizens to share fraud prevention tips with friends and family, especially seniors or newcomers to Canada, who are frequently the targeted victims of frauds and scams.”
According to YRP Det. Sgt. Glenn Wright, "There is a large increase in crypto investment frauds the last few months, particularly in “app based” schemes."
He said the amount of money lost is increasing and called it "extremely concerning."
"The use of application-based platforms by organized crime appear to be targeting our Chinese community particularly hard," Wright said.
He advised people to be risk adverse and when investing in something to only invest what they can afford to lose.
Anyone who has been the victim of fraud and lost money can report it to the YRP Financial Crimes Unit online at https://www.yrp.ca/en/online-reporting/Report-a-Crime.asp or by calling 1-866-876-5423, ext. 6627.
Victims of fraud who didn’t lose money can report it to the Canadian Anti-Fraud centre at https://antifraudcentre-centreantifraude.ca/ or by calling 1-888-495-8501.
