How a Canadian Couple Lost Nearly $300,000 in a Crypto Scam

A couple from Toronto became the latest victims of cryptocurrency scammers. They lost about $300,000 in an elaborate scheme.

However, in this case, law enforcement officials were able to recover “a large part” of the missing funds and return them to the victims.

Another Crypto Scam in Canada

Toronto Police Service announced earlier this week an elderly man and his partner, whose name has been withheld, fell victim to a cryptocurrency scam.

The couple was willing to invest their savings somewhere when they were approached by a stranger online who presented himself as “professional and knowledgeable” in the investment field. After gaining the family’s trust, he advises them to distribute their funds on fake crypto platforms. The perpetrator then urges the victims to send a certain amount of capital through a legitimate cryptocurrency exchange to a designated wallet.

The duo initially saw nothing wrong as the value of their investment grew “significantly” on the app provided by the scammer. At some point, they even transfer money directly to the person in question.

Victims began to feel the pinch when they asked to take back some of their possessions. Scammers insist they pay a hefty fee or invest more to complete the transaction. After that, they parted ways with nearly $300,000.

The Toronto Police Service conducted an investigation and were able to recover “most of the missing funds”. The identity of the impostor, however, remains unclear, and law enforcement agents assume they may be out of the country.

Stephen Carr – a resident of Meaford, Ontario – is another Canadian who has fallen victim to a similar scheme in recent times. He part with his entire life savings of about $500,000 after being conned into a crypto scam on YouTube.

Unlike the aforementioned couple, the police are unable to refund the funds, forcing Carr to sell his house so he can get his life back in order.

How to Avoid Crypto Scams

Several investigators and professionals has given public guidance needed once the scheme is uncovered. Detective Sean Vandecamp says such methods are quite popular, urging people to be very careful when joining online investments.

“It is impossible for funds to be recovered through cryptocurrencies, that’s why this is such a great success story,” he added.

Andreas Park – a professor of finance at the University of Toronto – also gave his two cents, arguing that crypto users are especially vulnerable:

“With the great freedom you have comes the responsibility — and the problem — that if you send it to the wrong person, it just goes away.”

Vanessa Iafolla – consultant and fraud prevention instructor at Wilfrid Laurier University – warns individuals who are not familiar with cryptocurrencies to avoid any offers that involve the asset class.