The Canadian Anti-Fraud Centre (CAFC) is receiving reports from Canadian victims of mass marketing fraud who have sent money through a cryptocurrency, such as Bitcoin. Cryptocurrencies operate independently of a central bank and are currently unregulated in Canada. Bitcoin is the most common cryptocurrency being reported to the CAFC. However, there are many other cryptocurrencies emerging, such as Monero, Ethereum, Dash etc.
While an increasing number of businesses are accepting cryptocurrencies as a form of payment, the CAFC warns that there is no protection from fraud when using them. Moreover, no government agencies will ever request payment in the form of cryptocurrencies.
Warning signs – How to protect yourself
- Beware of scams involving a request or demand for a transfer of funds using Bitcoin or any other cryptocurrency.
- Beware of offers to invest in initial coin offerings, which refers to the development of new cryptocurrency.
- No government agency will request payment in cryptocurrencies such as Bitcoin.
- Beware of requests to withdraw funds and deposit into a bitcoin wallet via bitcoin ATM.