Sask. residents lose millions to crypto fraud in 2022

Article content

Crypto crooks were hard at work in 2022, fleecing Saskatchewan folks by the dozen.

Article content

Last year, the RCMP opened 96 separate cryptocurrency fraud investigations in the province, with reported losses of some $3.25 million, according to Const. Tyson Maxwell, a Mountie of nearly 14 years who works with the force’s Federal Serious and Organized Crime (FSOC) unit.

Article content

And no corner of the province was left unscathed, Maxwell said, though he noted his unit does not have data on Saskatchewan’s major cities, as they are not under RCMP jurisdiction.

However, a few areas were particularly hard hit, according to the Mounties, including Swift Current ($361,000 in reported losses) and Maidstone ($570,000 in reported losses).

Some of these scams have netted relatively small amounts from victims — say $1,000. But some have ranged as high as $500,000, Maxwell said.

Article content

“They vary, all over the map.”

The fraudsters have made off with a victims money in a number of ways, including masquerading as police or the Canada Revenue Agency (CRA) and demanding payment in cryptocurrency, asking a person for funds in relation to materials for learning about trading in cryptocurrency, or bogus investment opportunities, according to the RCMP.

Fraudsters often present these investment opportunities on social media, and victims believe the platforms must have done some vetting of the companies advertising on their sites, Maxwell said.

This leads to a false sense of trust, that is then exploited.

“In the news, or on TV shows, you’ll hear Bitcoin and stuff like that, and you hear about these individuals getting rich off of it, and you don’t want to miss out on it.”

Article content

Maxwell noted that 10 years ago, a lot of fraud schemes were done using etransfer technology, but that has since shifted to cryptocurrency.

He said thieves believe they can keep their identities hidden because of the anonymity associated with cryptocurrency.

But not so fast.

The Mounties employ technology that can trace the transactions, he said. While police are working on tracing the fraudulent Saskatchewan transactions from 2022, it is their hope that they will be able to hold some of the perpetrators to account.

“We’re still working toward that goal,” he said.

“They could be charged with things like theft, fraud, money laundering, depending on the circumstances.”

Asked if police can recover stolen cryptocurrency, he replied: “It is possible.”

Article content

Officers can get judicial authorization to seize or forfeit people’s cryptocurrency accounts.

It’s not one particular group of fraudsters hitting Saskatchewan, he said, but rather a mixture.

“You have your call centre setup, that’s all they’re doing is committing crimes, to having someone legitimately in their basement, just trying to victimize one person.”

These digital purse snatchers can be located in Canada, he said, but “a good percentage of it is from foreign countries.”

“Cryptocurrency crimes have no borders, so it’s difficult for the RCMP,” he said.

Article content

This means, in an effort to hold foreign offenders to account, the Mounties must work with authorities from other countries. This necessitates working within the confines of privacy laws that exist in those countries, he noted.

Some countries do not co-operate with the RCMP, he said, which can be an inhibiting factor in catching fraudsters.

While pursuing cryptocurrency criminals, police do rely on technology. But some old-fashioned police work happens, as well.

When an investigation begins, an officer from the detachment where the crime occurs will conduct the interviews and gather the information required to begin tracing a fraudulent transaction.

“They have the relationships with those communities,” Maxwell said.

Article content

His unit offers the local officer guidance and advice. And if police turn up a suspect, the constable said that sometimes traditional surveillance work may also occur.

As for how Saskatchewan people can protect themselves from falling prey to crypto fraud, the officer offered some simple advice.

Never give out personal information to unsolicited callers and never do any financial transactions with an organization unless you’ve verified the organization is legitimate.

“People aren’t doing enough due diligence and looking into the people that they’re dealing with.”

Maxwell advises anyone who believes they’ve become the victim of cryptocurrency fraud to contact their local police detachment.

bharder@postmedia.com

The news seems to be flying at us faster all the time. From COVID-19 updates to politics and crime and everything in between, it can be hard to keep up. With that in mind, the Regina Leader-Post has created an Afternoon Headlines newsletter that can be delivered daily to your inbox to help make sure you are up to date with the most vital news of the day. Click here to subscribe.