Canadian police warn of "cryptocurrency recovery scams": scammers impersonate RCMP to target victims again

March 5 News: Canadian police have issued a safety warning about a emerging “recovery scam” targeting cryptocurrency scam victims. Scammers impersonate the Royal Canadian Mounted Police (RCMP) or law firms, claiming they can help victims recover previously stolen digital assets, but in reality, they are conducting secondary scams. This scam exploits victims’ urgency to recover losses and has attracted attention in multiple regions across Canada.

The warning stems from a case in Nanaimo, British Columbia. A resident lost about CAD 5,000 in a cryptocurrency job scam. The victim received a text message at the end of last year promoting remote stock trading jobs, with the scammer asking them to buy cryptocurrency via ATM and transfer it as part of the “onboarding process.” After making the payment, the so-called employer immediately went offline, and the funds could not be recovered.

Earlier this year, the victim received another message disguised as an RCMP announcement encouraging those who had fallen victim to crypto scams to submit a report. After filling out the form, a man claiming to be a lawyer contacted them, stating he had found two crypto accounts related to them and could help recover about $60,000 in so-called gains. However, police say these messages are unrelated to the RCMP and are typical fake recovery service scams.

Gary O’Brien, media relations officer for Nanaimo RCMP, emphasized that police will not proactively contact individuals claiming to have found crypto assets, nor will they ask for any fees to assist in recovering funds, and they do not collaborate with private organizations to provide such services. Any request for “investigation fees,” “management fees,” or “unlock fees” is highly likely to be a scam.

Andy Zhou, co-founder and CEO of blockchain security firm BlockSec, pointed out that these scams are becoming more systematic. Fraud groups often use data obtained from previous scams to target victims again, impersonating lawyers, investigators, or government partners to increase credibility. Zhou said scammers frequently use law enforcement names and logos, leveraging “authority bias” to boost victims’ trust and induce further payments.

Additionally, some criminal organizations create fake websites or ads for crypto asset recovery services, claiming victims are on government-approved scam lists and creating a sense of urgency with “funds about to be recovered.” Experts note that many victims searching online for ways to recover crypto assets are often targeted again by these fake platforms.

As digital asset scams continue to rise, Canadian authorities have been strengthening cryptocurrency investigation training since 2022 to improve law enforcement’s ability to trace blockchain transactions and identify related crimes. Police also remind the public to remain vigilant when encountering crypto investment recruitment or so-called asset recovery services, and to verify the identities of anyone claiming to be a lawyer or investigator.