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Comox Valley residents lost over 1.7 million to cryptocurrency scams in 2024 — RCMP

RCMP offer advice on how to protect against scams
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Bitcoin logos are displayed at the Inside Bitcoins conference and trade show in New York. (AP)

Cryptocurrency scams cost Comox Valley residents over $1.7 million last year, prompting the RCMP to issue a warning about these scams.

According to a release from the local detachment, "fraudsters are exploiting the unregulated nature of cryptocurrencies, leaving victims with significant financial losses.

"Cryptocurrencies operate independently of central banks and are currently unregulated in Canada. Unlike credit cards, cryptocurrency transactions lack fraud protection, and no government agency will ever request payment in the form of cryptocurrency," the release says.

The RCMP release explained that these frauds work through promises, often made on social media, dating platforms, ads and through unsolicited texts and emails, about low-risk investment opportunities in cryptocurrencies. The people behind the frauds "disappear" after the monies are transfered, and the scams are becoming more and more sophisticated.

The Comox Valley RCMP urges Comox Valley residents to take these precautions to avoid falling victim to cryptocurrency fraud:

- Be Skeptical of High-Reward Offers: If an investment promises high returns with little to no risk, it’s likely a scam.

- Research Thoroughly: Verify the legitimacy of investment opportunities. Anyone trading or advising on securities in British Columbia must be registered with the BC Securities Commission (BCSC). Check registrations at www.aretheyregistered.ca.

- Consult a Financial Expert: Cryptocurrencies are unregulated and lack fraud protection. Seek advice from certified financial advisors or reputable financial institutions before making investment decisions.

- Avoid Suspicious Links: Do not click on links in unsolicited messages or emails. These links may lead to phishing websites designed to steal personal and financial information.

- Verify Endorsements: Be cautious of claims involving government officials or celebrities endorsing cryptocurrency investments. Confirm their authenticity by visiting official government or agency websites.

- Understand the Risks: Cryptocurrency investments carry a higher risk of loss, even through legitimate platforms. Conduct extensive research and read credible reviews before proceeding.

If you or someone you know has been victimized by cryptocurrency fraud, report the incident to the Comox Valley RCMP and the Canadian Anti-Fraud Centre at antifraudcentre-centreantifraude.ca. Prompt reporting can help prevent further losses and aid in holding fraudsters accountable.

"The loss of over $1.7 million in 2024 highlights the urgent need for residents to exercise caution and vigilance when dealing with cryptocurrency," the RCMP release says. "The RCMP remains committed to protecting the community and raising awareness about this pervasive issue."