Police in Canada have issued a warning over a bitcoin tax scam after more than 40 York region residents fell victim to fraudsters.
The fraudsters, who identified themselves as employees of the Canada Revenue Agency, threatened the victims with arrest for unpaid taxes if they did not send funds using bitcoin ATMs.
York police's Det. Const. Rob Vingerhoets said the bitcoin ATMs are "legitimate" and that tracking down the fraudsters or recovering lost money may be possible.
According to police force, there has been an increase in reports of such scammers in recent months. Public awareness is the only way to combat such scams in the future, Vingerhoets said, adding, "Our main strategy, ... [is] to stop people from becoming victims in the first place."
York police have placed flyers near bitcoin ATMs to alert the public about potential scams, the report adds.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.