Investigators warn of Fraud/Extortion schemes involving Crypto currencies

Investigators warn of Fraud/Extortion schemes involving Crypto currencies

Friday, May 25, 2018 - 8:15 AM
Financial Crimes: 416-808-7300

The Toronto Strategic Partnership against Cross Border Fraud is a collaboration of the Toronto Police Service - Financial Crimes Unit and other national and international law enforcement partners. Members of the Strategic Partnership are encouraging the public to be vigilant regarding the use of Bitcoin in the furtherance of fraudulent and extortionate acts.

Victims of phone-based and internet-based fraud/extortion schemes are being advised to pay associated “fines” and/or “fees” via Bitcoin. Increasingly, victims are being told to attend various Bitcoin Automated Teller Machines (ATM’s) where they will deposit cash in order to obtain and transfer Bitcoin to other electronic “wallets,” the owners of which may reside outside of Canada. Once Bitcoin is sent it becomes virtually untraceable.

Bitcoin is fast becoming the preferred payment mechanism utilized by people committing so-called CRA Scams, where victims are advised of their imminent arrest on the basis of non-existent infractions. Victims are advised that immediate payment via Bitcoin ATM will prevent their arrest. Many GTA victims have lost thousands of dollars to suspects utilizing this method.

Members of the Strategic Partnership are reminding the public that the Canada Revenue Agency (CRA) may compel payment via the courts or other legal means available to them. Those means do not include phoning people and advising them of their pending arrest. Nor will the CRA ever contact people over the phone and advise them to pay fees/fines owing using Bitcoin or any other crypto currency.

Operators of retail locations equipped with Bitcoin ATM’s are encouraged to be aware of this method of victimization and to take appropriate action to inform their customers accordingly. Persons who believe they have been defrauded in the fashion described are encouraged to contact their local police service.

Anyone with information is asked to contact police at 416-808-7300, Crime Stoppers anonymously at 416-222-TIPS (8477), online at www.222tips.com, or text TOR and your message to CRIMES (274637). Download the free Crime Stoppers Mobile App on iTunes, Google Play or Blackberry App World.

For more news, visit TPSnews.ca.

Constable David Hopkinson, Corporate Communications, for Detective Sergeant Ian Nichol, Financial Crimes