Cryptocurrency scams are surging, and VicPD is urging residents of Victoria and Esquimalt to stay vigilant as fraudsters leverage advanced AI technology to deceive victims.
Last year alone, 46 cryptocurrency-related crimes were reported in the area, and with losses projected to climb in 2025, the local police are sounding the alarm.
VicPD recently participated in Operation DeCloak, a joint initiative with B.C. police agencies, blockchain experts, and cryptocurrency exchanges.
The effort revealed over 1,100 victims worldwide and estimated losses of $35 million CAD. Locally, investigators note that the majority of high-value crypto fraud cases stem from investment scams.
With advancements in artificial intelligence, scams are becoming increasingly sophisticated. According to Sergeant Simon de Wit of VicPD’s Cyber Crime Unit, AI chatbots now play a role in duping victims by providing misleading advice, impersonating trusted figures, or using fake celebrity endorsements.
“Fraudsters are combining AI with traditional tactics, making their schemes even harder to detect,” says de Wit, warning that investment, romance, employment, extortion, and bank scams are expected to persist and evolve in 2025.
Common scams include investment schemes luring victims with promises of high returns via fake websites, extortion emails threatening to expose personal details unless paid in cryptocurrency, and employment scams offering work-from-home jobs that require upfront payments or misuse bank accounts.
Romance scams involve fraudsters building online relationships to request money under false pretences, while bank scams see victims tricked by fake representatives into transferring funds to crypto wallets.
VicPD emphasizes the importance of caution when dealing with cryptocurrency and offers these tips:
- Fully research the risks and platforms before investing
- Store assets in a secure, offline “cold wallet”
- Never share login credentials, passkeys, or seed phrases
- Avoid accessing crypto accounts on public Wi-Fi or shared devices
- Periodically withdraw investments and diversify holdings
It’s also crucial to remember that legitimate businesses and government organizations rarely, if ever, accept cryptocurrency as payment.
“If someone requests cryptocurrency, it’s a major red flag that fraud is involved,” warns de Wit. “Once you send it, there’s no way to cancel the payment or retrieve your funds.”
Comox RCMP issued a similar warning last week after residents in their jurisdiction lost $1.7 million to cryptocurrency scams in 2024 alone.
AI-driven scams and cryptocurrency’s anonymity make prevention difficult. VicPD urges residents to report suspicious activity and protect their investments.
