Leamington Resident Loses Over $25,000 To A Cryptocurrency Investment Fraud

Thursday February 24th, 2022

Posted at 8:08pm

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 Ontario Provincial Police are sending out a warning about cryptocurrency investment frauds after a Leamington resident  lost over $25,000 to one.

Police say that investment scam reports received include initial coin offerings, Ponzi schemes, franchise opportunities, futures trading, multi-level marketing opportunities, mortgage investment opportunities and pump and dump schemes. In most of these cases, the investment opportunities offer higher than normal, or true monetary, returns which often result in investors losing most, or all, of their money.

The majority of the investment scam reports involve Ontario residents deciding to invest in cryptocurrency after seeing a deceptive advertisement on social media. It typically involves victims downloading a trading platform and transferring cryptocurrency into their trading account. In most cases, victims are not able to withdraw their funds.  It is very likely that many of the trading platforms are fraudulent or controlled by fraudsters.  In addition to crypto trading scams, the OPP also receives reports on suspected fraudulent Initial Coin Offerings.

Warning Signs

  • Investment opportunities with higher than normal returns.
  • Unsolicited telephone, email or social media investment offers.
  • Displays of urgency so you don’t miss out.
  • An individual met on a dating or social media website who quickly attempts to convince you to invest into cryptocurrency.
  • A friend tells you about a cryptocurrency investment opportunity via social media or email.
  • Telephone calls from crypto investment companies.
  • Fraudulent ads posted on the internet or social media.
  • Request to transfer your crypto investment to an alternate crypto address.

 

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