The performance of Bitcoin has been really great for the past few months. The digital currency reached an all-time high recently before recording a sharp decline this weekend. The increased Bitcoin price followed by speculations of further rise has led to an increase in the number of fraudulent investment schemes and scams.

The rise in Bitcoin-related frauds has forced the Canadian Police to warn the country’s population. The Durham Regional Police issued the warning following multiple reports from the residents of the region. According to the information available on various media outlets, many Canadians were approached by fraudsters after they responded to few listed job openings and advertisements.

The report also describes the modus operandi of the fraudsters which involves sending cheques to victims and asking them to use that money to buy bitcoin. Once the user deposits the cheque into their account, buys the digital currency with own money and transfers it to the fraudster, the cheque or e-transfer sent to the user bounces, leaving them short of money.

Similarly, another scenario involves scammers posing as the employees or representatives of the Canada Revenue Agency who ask for income tax payments in Bitcoin. Victims of such cryptocurrency scams have lost thousands of dollars so far.

The Durham Region Police Department asks the residents to be cautious while dealing with such requests. They also urge them to come forward and report the fraud if they have lost money to such scams.

The issue is not confined to Canada alone. There have been reports of similar scams attempted in the United States and India as well. The tax season also presents a lucrative opportunity for the scammers as people won’t find a communication from the “taxman” unusual. Many times, the victims are unsure about the legality of Bitcoin and virtual currency fraud, which makes them think twice before reporting it to the authorities.

It is advisable for people to not only avoid people asking them to buy Bitcoin on their behalf but also be wary of attractive cryptocurrency investment options that promise unrealistic rewards, as such schemes usually end with unsuspecting investors losing money to Ponzi schemes. It is better to be careful than letting the desire to make a quick buck get the best/worst out of oneself.

Ref: Durham Regional Police | Image: NewsBTC