March 2022 marks the 18th anniversary of Fraud Prevention Month in Canada, a month-long crime prevention initiative aimed at educating and informing consumers and the community on how to recognize, report, and stop fraud.

Thousands of Canadians of all ages and from all walks of life are defrauded each year, costing Canadians in excess of $100 million dollars per year. There is no typical fraud victim as individuals and business across all demographics and industries can be impacted.

Consumers can play a role in stopping fraud by arming themselves with information, recognizing and reporting fraud when they encounter it. It is important for consumers to remain vigilant and aware of the many different types of fraud scams out there as they are ever-changing, and new trends are always emerging.

Throughout the month, the Medicine Hat Police Service Community Support Unit will be sharing information on how to recognize and stop from falling victim to common frauds and scams. Each week will focus on a different theme, with week one focusing on crypto currency frauds / scams/

With the emergence of crypto currencies such as Bitcoin and Ethereum, fraudsters have another tool to attempt to commit fraud with. Crypto currencies are a type of currency accepted worldwide without government or bank control. This has made it increasingly more difficult for people to contact someone directly to confirm that a transaction is real.

Often, fraudsters will use traditional scams such as mass marketing and phishing phone or email scams and lure victims through investment opportunities in crypto currency. The fraudsters will either have victims purchase crypto currency and send it as an investment or send the fraudster real money for them to purchase crypto currency for them. Either way, the fraudster takes the funds, controls them, and never provides the money back.

The same rules apply here. If you do not know who is investing your money, don’t give them your money. If an investment opportunity comes out of the blue and appears to be too good to be true, it likely is. Always be vigilant, ensure you trust the person or company that you are investing your money with, and research the crypto currency yourself to understand how it works and how to get involved with it.

Gift cards, or at least their codes, are also increasingly being used by fraudsters. Scammers will contact potential victims hoping to make them believe they owe money, or that a relative needs money, or they have won money. All they ask for, is for the person to go to a local store and purchase a variety of gift cards and call them back to provide the codes on the back. These codes are then used as a form of online currency by the fraudster to make online purchases.

If you are ever concerned that something is not legitimate, do not participate or share information and remember that legitimate businesses such as the CRA, CBSA, police, telephone providers, lottery companies, airlines, and other companies will never ask you to purchase gift cards and send the codes to them.

For more information contact:

Sgt Adam Gregory
Medicine Hat Police Service
Community Support Unit
Ph: 403-529-8451