By Evan Spicer
Director of Cryptocurrency Investigations
Winnipeg investigators recently recovered CAD$35,000 in bitcoin for victims of two crypto schemes. This is the best case scenario in what often proves to be an elusive and complex aspect of law enforcement – cryptocurrency fraud.
Two separate investigations led to the recovery of $18,000 worth of bitcoin to one client and $17,000 to another. These sums were discovered and retrieved by the Winnipeg Police Service’s cybercrime investigation team and the Canadian Anti-Fraud Centre. The case demonstrates the necessity and effectiveness of specialized cyber crime and crypto fraud units.
Crypto Schemes: A Tenfold Increase in Two Years
Sergeant Trevor Thompson of the Winnipeg Police has warned the public about the massive growth in cryptocurrency frauds. Although the $35K recovery from the twin investigations ended in the best case scenario, he reminds Winnipeggers to take preventative measures to avoid losing money to dodgy crypto schemes in the first place.
Although crypto is an exciting way to buy online and invest, consumers should remember the high risk and volatility of crypto assets. Thompson warned against extravagant promises, false testimonials about miraculous returns and lack of transparency.
The sheer scale and exponential growth of crypto frauds also increases the risk of losing money to suspicious anonymous bitcoin wallets and poses a formidable challenge to law enforcement. Sergeant Thompson told Winnipeg CTV News, “I’ll tell you in the last two years, it’s (crypto fraud) probably increased tenfold. I’d be shocked if every week I don’t see five or six in various ways, shapes and forms, depending on the type of scam.”
Social Media Dangers
Thompson identifies social media as a particularly dangerous place for crypto users. Social media crypto schemes often phish for information for hacking bitcoin wallets. More “friendly” versions of phishing involve new friends and virtual romantic partners asking for access to crypto accounts.
Consumers should guard their crypto codes and keys carefully and be wary of social acquaintances offering unsolicited investing or financial advice, asking for money or a loan or requesting access to personal information.
Crypto Investigation Reports–the Ultimate Weapon Against Crypto Schemes
The development of cryptocurrency investigation units within law enforcement is encouraging, but many of these departments are overwhelmed by the sheer number of complaints and alerts they receive daily. If you have lost money to a cryptocurrency fraud or if your bitcoin wallet has been hacked, it’s important to get law enforcement involved.
Before reporting your complaint, however, be prepared. Approaching the police with a full crypto investigation report with details about the suspected fraud will give you and the authorities a head start. This information is a crucial tool that will help the police locate the people behind the scheme and find your funds.
Talk to the MyChargeBack investigation team and find out how we can help you locate your funds on the blockchain.
MyChargeBack Will Help You Find Your Funds on the Blockchain
If you have lost money to a cryptocurrency scheme, seek fund recovery assistance right away. Consult with MyChargeBack experts and get started with your fund recovery claim. We have extensive knowledge and working relationships with regulators and more than 450 law enforcement agencies around the world, as well as the solutions that can improve your prospects of getting your cryptocurrency back.