The popularity of investing in cryptocurrency has grown in recent years and so has the number of frauds reported by Strathcona County residents. 

Cryptocurrency scams

Cryptocurrencies are not regulated in Canada. Investing in crypto can be risky, especially if you don't do your research. Fraudsters create professional-looking websites, promise high returns with little to no risk, and convince victims to provide their financial and personal information. If you choose to invest in cryptocurrency, the Strathcona County RCMP Financial Crime Unit recommends you follow the tips below. 

Red flags to watch out for when investing in cryptocurrency:

1. Promises of guaranteed returns: No legitimate investment can guarantee consistent profits, especially in the volatile cryptocurrency market;
2. Pressure to act fast: Scammers often create a false sense of urgency to prevent victims from investigating further;
3. Unverified platforms: Always research the platform's credentials, reviews, and regulatory compliance before transferring any funds;
4. Lack of transparency: Be wary of platforms or individuals that do not provide verifiable contact information or clear terms of service;
5. Remote access to devices: In many circumstances, the scammers will request to put software on victim’s computers or smartphones that allow remote access to “help” victims with their investments (e.g., AnyDesk);
6. Promises to pay out funds: If a victim already finds themselves investing, and they want out of their investments, the scammer will ask victims to pay more funds to pay for things such as “taxes”, “errors with the financial institutions”, etc. The scammers are trying to trick victims into giving them more money before the victims pull out of the scam.
    

Safety tips to follow when investing in cryptocurrency:

1. Educate yourself: Learn about how cryptocurrency works, including its risks and rewards. If in doubt, do not consider investing.
2. Use trusted platforms: Stick to well-known and regulated exchanges for buying and trading cryptocurrency. Alternatively, use local financial advisors that you can speak with in person.
3. Verify legitimacy: Cross-check the platform's reputation through independent reviews and trusted sources.
4. Be skeptical: If an opportunity sounds too good to be true, it probably is.

If you experience a cryptocurrency scam, please report it to your local police detachment. Strathcona County residents can do so by calling the 24-hour non-emergency complaint line at 780-467-7741 or visiting the detachment in person.