A new crypto recovery scam is spreading in Canada, with fraudsters pretending to be police officers to target people who have already lost money in cryptocurrency scams.
According to reports from Royal Canadian Mounted Police (RCMP) cited by Decrypt, and shared by Wu Blockchain, scammers are impersonating RCMP officials and promising to help victims recover lost digital assets for a fee.
Followed Tactic:
In Nanaimo, Canada, a resident initially lost about $5,000 CAD in a fake cryptocurrency “remote work” scheme. After the loss, the victim filled out a form linked to a fake RCMP notice online.
Soon after, they received a call from someone posing as law enforcement, claiming that investigators had found $60,000 CAD in “crypto earnings” under the victim’s name and offering to help recover it.
However, Canadian police later confirmed the entire claim was part of a digital asset retrieval scam designed to trick victims into paying additional fees. The Canadian police emphasize that it will never:
Contact individuals to inform them about “discovered” crypto accounts
Partner with private companies to provide paid crypto recovery services
Request fees or payments to investigate fraud cases
Authorities say the digital asset retrieval scam is especially dangerous because it targets people who are already victims of earlier fraud.
The retrieval scam is a secondary fraud that targets people who already lost money in cryptocurrency scams.
Criminals obtain lists of previous victims through data leaks, dark web marketplaces, or social media posts where people share their losses. They then contact victims pretending to be recovery experts, lawyers, or government investigators.
Authorities say several warning signs can help people spot a crypto recovery scam early:
Someone contacts you claiming your lost crypto has already been recovered
Requests for upfront fees in cryptocurrency
Pressure to act quickly before “funds disappear”
Requests for private keys, seed phrases, or remote computer access
Promises of guaranteed or high recovery success, i.e. 100%, 200% returns etc
Crypto crimes are surging in the overall world, but North America, particularly in the United States and Canada, is facing major issues in recent years.
The region is mostly affected as a place where victims are targeted, rather than being a center for crypto hacking or money laundering. These crimes are often linked to overseas criminal groups or state-backed actors.
Data from the FBI Internet Crime Complaint Center shows that in 2024 the United States recorded about 149,686 crypto-related complaints, with losses reaching $9.3 billion, a 66% increase year-over-year.
Authorities in several regions have issued alerts:
In the United States, the Federal Bureau of Investigation warns about fake law firms and recovery companies targeting victims.
European investigators working with Europol report similar schemes tied to large investment scams.
Financial regulators in Australia and New Zealand also warn about unsolicited recovery offers.
Understanding of basic on-chain safety measures from the user's side is equally important as regulators’ side, in order to protect oneself against frauds.
By avoiding posting every detail and information on social media channels, never paying any fees based only on phone calls, verifying claims through official government websites, and most importantly, reporting suspicious messages to local cybercrime authorities, in place of avoiding it, not only protects the user himself but this could protect others also.
As cryptocurrency adoption continues to expand, bad actors are also becoming more sophisticated. Using new tricks to lure users or take advantage of user-generated vulnerabilities.
In this scenario, adaptation from users’ side are also required with the strict regulatory maintenance and laws.
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