Canadian police warns over Bitcoin fraud scheme

Durham Regional Police Service (DRPS), Ontario, Canada, has issued a warning against digital currencies such as bitcoin after residents reported related fraud schemes.

According to a notice posted last week, the Canadian Police said that fraudsters contact residents, promising to make money. They also send cheques to the victims, asking money to purchase bitcoins. 

The scam takes shape when victims deposit the cheque or e-transfer the amount into their accounts, prior to buying and depositing bitcoin into the fraudsters’ account. Their incentive is a portion of the money sent to them via the cheque. Inevitably, after victims buy bitcoins with their own money, the fraudulent cheque or e-transfer bounces. 

“For doing this, they are told they can keep a certain amount of the money that was originally sent to them. However, a short time after the victim uses their own money to purchase the Bitcoins, the original cheque or e-transfer bounces”, the DRPS explained.
Bitcoin scams have also reportedly taken shape in revenue agency scams where fraudsters purport to be government employees to ask for income tax payments, although no details have been revealed.

While no exact figures about the number of people impacted have been released, police said that residents have lost "several thousands of dollars" as a result. Police have also advised residents to contact them if they have received any information about the scams.

The surge in bitcoins popularity brought more people into the business of buying and selling the cryptocurrency. Phishing scams take advantage of people who don’t check the spelling of websites or their SSL certificates and click on links from unverified sources. Some of the bad guys are tech savvy enough as to come up with plug-ins and apps, some of them having five star reviews that give them credibility.