Bitcoin scams now reported almost daily, say Brantford police

Police in Brantford are sounding the alarm over cryptocurrency scams.

They say scams involving the cryptocurrency Bitcoin have been on the rise in recent years in the community.

"In a given week, I might see five of these come across my desk, andthat's only the five that have been reported,"said Andre Major, a detective with Brantford, Ont. Police Services."Bitcoin only started being a household name a few years ago. It's new, people are not very educated about it."

Fake investment scams typical

He said scammers typically make contact with their victims online,either through a fraudulent website or through social media posts.First contact might come via a familiar email or social media account.

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Victims "get hooked up with this investor, send them a whole pile of money, only to learn [later] that their social media friend's account had actually been taken over and there was a scammerputting up this post," he said.

Scammers generally promise high return on investment, enticing prospective investors to buy Bitcoin or another cryptocurrency and transfer it into a "trading account," said Major. In some cases, he said, victims have been asked to turn over control of their computer using a screen-sharing app.

Sending money to a stranger

He said the scams have cost some residents all of their savings.

"In some cases, people are mortgaging their houses. They're putting forward their life savings into these Bitcoin investments, only to learn that the person's not a legitimate investor and they've been duped out of all their money," said Major.

Once the money changes hands, he said, it can be very difficult for local police to help recover it.

"It's not a regulated currency like Canadian or U.S. dollars," said Major. "You're not investing through traditional banking institutions. You're essentially sending your money to a stranger."