Bitcoin is top of mind these days after the unregulated digital currency quickly became valued at over 20 thousand Canadian for one coin. However, Bitcoin is also being used by crooks who previously would have extorted payment through such means as pre-paid credit cards or wire transfers. A quick Google search finds many instances in Canada where people are being scammed into sending the ultra-hot cryptocurrency as payment. According to the Canadian Anti-Fraud Centre Canadians have been swindled of 1.7 million dollars involving cryptocurrencies this year, almost double the numbers from 2016.
“This is a new vehicle for scammers to use because, like a prepaid Visa card or a money transfer, it’s next to impossible to track where the money goes once put into a Bitcoin ATM,” says Evan Kelly, Senior Communications Advisor for Better Business Bureau (BBB) serving Mainland B.C. “When you have an unregulated currency like this, it can certainly become attractive to the criminal element. The number one thing to remember is government organizations don’t operate this way and they don’t take payment in Bitcoin.”
BBB offers tips on scams that ask for payment in Bitcoin:
* Government organizations such as law enforcement and the CRA do not accept Bitcoin as payment.
* The Canada Revenue Agency will not solicit for payment over the phone or online.
* Government agencies will not insist you keep conversations secret from your spouse or partner.
* Don’t trust the phone number on your call display, these are easily spoofed.
* Police agencies do not take ‘bail’ payment over the phone. They can be paid at a courthouse or police station.
* Use your common sense. While Bitcoin or other digital coins are gaining in value and popularity, they are still unregulated and very few places actually accept them.
* If you have any concerns, hang up the phone and contact the agencies directly.
About BBB:
For more than 100 years, Better Business Bureau has been helping people find businesses and brands they can trust. In 2016, people turned to BBB more than 365 million times for BBB Business Reviews, all available for free at bbb.org. BBB Serving Mainland B.C., founded in 1939 and serving the Lower Mainland, Thompson-Okanagan, Northern, Central and Southern Interior BC, and the Yukon, is one of 108 local, independent BBBs across North America. In 2016, consumers turned to BBB Serving Mainland B.C. more than 2 million times for Business Reviews and processed 6,000 complaints.