Komal Joshi · Oct 24, 2020 . 6min read
Canadian Scammers pose as Cops, defrauds victims using Bitcoin and Gift Cards
Scammers posing as cops defrauded victims by accepting payment in Bitcoin and Gift cards. The fraud amounts to a total of $78,000 for two separate cases.
By Victor Ugochukwu · Aug 5, 2020 . 5min read
A recent report from the Ontario Provincial Police detachment of Peterborough County suggests some scammers posing as cops defrauded victims by accepting payment in Bitcoin and Gift cards.
According to Police reports, the fraud amounts to a total of $78,000 for two separate cases.
The first case was a victim scammed by impostors posing as Service Canada employee. Scammers contacted him saying there was a warrant for his arrest due to fraud and money laundering complaints. The scammers went further to trick the victims into paying a total of $28,000 into a Bitcoin wallet address. This was after another set of scammers (possibly working together with the earlier ones as a group) contacted them to make payment or risk arrest.
The second case happened on the same day at around noon, with the fraud totalling $50,000. Apparently, in this case, the scammers contacted the victim, telling him that his credit card information had been stolen, and numerous transactions had been made on the card. They further asked the victim to make payments for the transactions. As per the report, failure to do so may lead to loss of access to the funds in his card. The victim went forward to making the payments using Gift cards as requested by the scammers. The victim used Google Play cards, particularly for these payments. Perhaps the scammers opted for this mode of payment because of anonymity they think it affords them.
Scammers can easily convert Bitcoin to Gift Cards and vice versa on P2P Exchanges.
Bitcoin and Gift cardholders can easily convert their holdings to cash on P2P crypto exchanges like Paxful. Scammers and money launderers usually adopt these kinds of exchanges. Some of these exchanges require little or no KYC from users. This has made them a den for scammers. However, LocalBitcoins another P2P exchange newly implemented Elliptic’s crypto tracing tool. This is to ensure compliance and possibly bar scammers from using them.
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Atleast 7 among other blockchains it reports in terms of fees worth a combined $25 billion only generated less than $1,500 in transaction fees.
Victor Ugochukwu · Oct 22, 2020 . 6min read