RCMP in Red Deer are crediting a warning sign about Bitcoin fraud posted above an ATM from preventing a potential victim of fraud from losing $90,000.

Police say that on July 3rd, 2020, a victim had received a call from a scammer pretending to represent the Canadian Revenue Agency (CRA) and the RCMP, telling the victim that his identity had been compromised and was being used in a money-laundering operation.

The scammers then tried to convince the victim that in order to protect their assets, they needed to deposit his money into a Bitcoin account, which was actually being controlled by the scammer. 

The victim got as far as a Bitcoin machine, but that's when he saw the RCMP poster warning people about potential scams involved with Bitcoin. That poster, combined with the vigilance of an employee at the business, prevented the victim from finishing the transaction. 

“These are not small crimes; people are losing their life savings to these scams,” said Cst. Andrew Devine. “No government agency, the RCMP, nor any reputable business will ever call you and demand a payment through Bitcoin for any reason.”

Bitcoins are an unsecured and non-refundable form of cryptocurrency or “virtual” currency. They are not issued or guaranteed by any bank or government and are not considered legal tender in Canada.

The Red Deer RCMP have started an initiative to post warnings on Bitcoin ATMs across the province, warning users of the potential for fraud.

“The more awareness we can spread about the risks associated with using Bitcoins, the better,” says Cst. Devine. “In this particular case, the gentleman was just seconds away from losing his life savings. Fortunately, the warning poster and the business employee intervened and prevented the irreversible transaction.”

For more information on all the latest scams and frauds affecting Canadians, you can click here to go to the Canadian Anti-fraud Centre website. 

One of the Bitcoin fraud poster's used by the RCMP. Photo courtesy of the Red Deer RCMP.