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Police are warning the public about investment scams after a Barrie man was defrauded of roughly $95,000 through what initially appeared to be a legitimate investment opportunity.
The 63-year-old man recently reported the fraud after responding to a social media advertisement offering opportunities to invest in foreign currency, gold, and silver. He initially invested a relatively small amount and, within two weeks, received what appeared to be a profit.
Police say the fraudster then contacted the man by phone to confirm he had received the money and encouraged him to invest more in order to generate larger returns. Over time, the man was encouraged to invest thousands of dollars and was provided with screenshots showing the investments increasing in value.
When he attempted to withdraw his money, the fraudster told him a conversion fee or security deposit was required before the funds could be released. He was told the money would be refunded once the funds were released.
The man was also directed to use cryptocurrency machines to transfer additional funds.
Barrie Police urges residents to stop, take five minutes and speak with two people they trust before sending money. A second opinion can help identify a potential scam before a costly decision is made. Police also recommend doing independent research and verifying the legitimacy of any investment company.
Once funds are transferred through cryptocurrency, recovering the money can be extremely difficult. In this investigation, initial cryptocurrency tracing revealed the funds were moved through several locations around the world.
Anyone who believes they have been the victim of an investment scam is asked to contact their local police service and report the incident to the Canadian Anti-Fraud Centre.
