A resident of Parksville, B.C. is out approximately $200,000 after investing in what turned out to be a fraud, on the referral of a friend who was also scammed.
They were promised huge returns by someone she thought was part of a legitimate online financial investment group, according to Oceanside RCMP.
The resident started on a legitimate trading platform and began communication with a fraudster through a social media messaging app, police said.
They initially invested $2,500 into a cryptocurrency fund, were told they had earned a return and increased their investment with numerous $10,000 increments totalling approximately $200,000.
“When the portfolio ‘value’ increased to $35 million, the resident requested the trading platform transfer the $35 million to a personal account,” Sgt. Shane Worth told the PQB News. “The trading platform advised the resident that the funds invested in the cryptocurrency fund were not recoverable, as they had been willingly transferred by them outside of the platform. It was at this point, the resident realized they were scammed.”
Despite this resident acting on an investment recommendation they received from a trusted friend, it turned out to be a fraud, according to police.
“Potential investors are reminded that online investing can have huge risk and not all websites and investment opportunities are legitimate,” Worth said. “If in doubt, check with your bank or a financial advisor from a reputable institution. If the returns are too good to be true, they probably are.”