In the past 2 years, over $6.4 million has been lost through cryptocurrency scams in Sherwood Park and Strathcona County.
“Crypto” comes with inherent risks especially when investors do not conduct thorough research. Fraudsters are creating professional-looking websites and Facebook celebrity endorsement ads, promising high returns with little to no risk. Unfortunately, funds lost to cryptocurrency scams are likely gone forever.
Red flags to watch out for when investing in cryptocurrency:
- Promises of guaranteed returns: No legitimate investment can guarantee consistent profits, especially in the volatile cryptocurrency market;
- Pressure to act fast: Scammers often create a false sense of urgency to prevent victims from investigating further;
- Unverified platforms: Always research the platform’s credentials, reviews, and regulatory compliance before transferring any funds;
- Lack of transparency: Be wary of platforms or individuals that do not provide verifiable contact information or clear terms of service;
- Remote access to devices: In many circumstances, the scammers will request to put software on victim’s computers or smartphones that allow remote access to “help” victims with their investments (e.g., AnyDesk);
- Promises to pay out funds: If a victim already finds themselves investing, and they want out of their investments, the scammer will ask victims to pay more funds to pay for things such as “taxes”, “errors with the financial institutions”, etc. The scammers are trying to trick victims into giving them more money before the victims pull out of the scam.
Safety tips to follow when investing in cryptocurrency:
- Educate yourself: Learn about how cryptocurrency works, including its risks and rewards. If in doubt, do not consider investing.
- Use trusted platforms: Stick to well-known and regulated exchanges for buying and trading cryptocurrency. Alternatively, use local financial advisors that you can speak with in person.
- Verify legitimacy: Cross-check the platform’s reputation through independent reviews and trusted sources.
- Be skeptical: If an opportunity sounds too good to be true, it probably is.
However, raising awareness can help protect others from falling victim to similar fraud schemes.
The Strathcona County General Investigations Financial Crime Unit is conducting a public presentation on Tuesday March 11, 2025 at 1 p.m. in Meeting Room 2 at the Strathcona County Library, 401 Festival Lane, Sherwood Park.
