Cobourg police are warning the public about online investment scams after two Cobourg residents recently lost $752,000 to fraudsters.
One of the victims reported they made wire transfers totalling over $702,000 to a supposed international investment service provider for the purpose of purchasing gold and investing in Bitcoin. All communication with the company occurred through a messaging app. When the victim attempted to withdraw funds, they were unable to do so.
The other victim was defrauded of $50,000 after viewing a video promising high returns with a short turnaround time. Scammers used AI to create a fake video that depicted tech mogul Elon Musk endorsing a non-existent investment company and encouraging viewers to call a provided phone number.
A fraudster claiming to be from the investment company then offered the victim guidance through the investment process and convinced the victim to download an app that gave the fraudster remote access to the victim’s computer. Funds intended to be for the investment were then transferred to the fraudster.
Police are advising members of the public to be cautious when it comes to online investment opportunities:
- Before making any investment, do additional research and talk to trusted individuals
- Do not engage in unsolicited investment opportunities seen online
- Never provide personal information online to unknown persons or companies
- Be skeptical of investment opportunities that promise higher than expected rates of return (if something seems too good to be true, it probably is)
- Do not download unknown programs on your computer or allow unknown persons to access your computer
- Ensure you are investing with a legitimate investment company. Conducting internet searches for the company and then make a follow-up phone call to the company, as some fraudsters will use the name of a legitimate company.
If you have been a victim of an investment scam and suffered a financial loss, report the incident to police.
If you were contacted about an investment scam but did not experience a financial loss, also report it to the police and contact the Canadian Anti-Fraud Centre at 1-888-495-8501 or visit www.antifraudcentre-centreantifraude.ca.
