'Tech-savvy' Calgary man says he lost thousands in cryptocurrency scam
A 23-year-old Calgary man says he was tricked out of thousands of dollars by an online hacker posing as a cryptocurrency seller.
Brendan Lebert, who had previously held legitimate online investments, says the scam was sophisticated enough to fool him — and he's worried others could fall for it too.
"I want people to understand just how easily this can be done," he told CTV News. "I mean, I'm a young person, I feel like I'm very tech-savvy and I have a degree in justice studies. I thought that I knew how to avoid these types of situations, and yet they still got me."
Lebert says he was contacted late last month through Instagram by someone who he thought was an old friend. After a few messages back and forth, that person convinced the Calgarian to pay into a website that trades in crypto.
Lebert was told the site would help him invest in Bitcoin.
"I had no reason to distrust this person," he said. "I thought I knew them."
And his first investment seemed to pay off.
"I thought that in one day with a $1,000 investment, I made $6,700," Lebert said. "I was very excited. I told my friend, well, the person who I thought was my friend, 'this is amazing. We are on the ground floor for something big here.'"
But Lebert had no idea the person he was messaging on Instagram wasn't his friend. He now believes the social media account was hacked by a fraudulent investor hoping to trick Instagram followers by preying on their personal connection.
When Lebert went to withdraw what he believed to be a successful investment, he says he was told to pay even more to access his own account.
"They said I could cash out, but before I do that, there's a processing fee that I have to put up," he said.
"I thought I knew this person, so I thought I had no reason to worry. It was finally when they asked for a $3,500 insurance fee, I finally clued in. I can't believe what I just walked in to."
In total, Lebert says he gave away almost $7,000 before realizing his investment wasn't real.
Similar crypto scams are common.
"If you want to (invest), certainly do your homework," said University of Calgary finance professor Alfred Lehar. "Security cost and the responsibility on crypto is on the user, so you have to be very careful."
Lehar recommends searching online for reputable crypto investment websites before spending any amount.
He also recommends keeping a personal eye on any money invested -- and potentially even speaking with a financial advisor before making any big decisions.
"(Scammers) want to take advantage of you, especially since there's not so many people who are well-versed in how crypto really works," Lehar said.
The world's largest cryptocurrency exchange, Binance, said in November that global regulators should establish rules for crypto markets in order to protect users and prevent financial crimes.
Lebert wishes someone could have helped him. He's currently working with police and his bank to recover the stolen funds, but says he isn't optimistic the case will be solved.
"My heart is broken," he said. "I worked very hard for my money and I feel so ashamed. I feel embarrassed."
The Canadian Anti-Fraud Centre has more information about cryptocurrency scams and how to report them on its website.
CTVNews.ca Top Stories
RCMP uncovers plot to sell drones and equipment to Libya
The RCMP says it has uncovered a plot by two men in Montreal to sell Chinese drones and military equipment to Libya illegally.
Demonstrators kicked out of Ontario legislature for disruption after failed keffiyeh vote
A group of demonstrators were kicked out of the legislature after a second NDP motion calling for unanimous consent to reverse a ban on the keffiyeh failed to pass.
Tom Mulcair: Park littered with trash after 'pilot project' is perfect symbol of Trudeau governance
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
Man wanted in connection with deadly shooting in Toronto tops list of most wanted fugitives in Canada
A 35-year-old man wanted in connection with the murder of Toronto resident 29-year-old Sharmar Powell-Flowers nine months ago has topped the list of the BOLO program’s 25 most wanted fugitives across Canada, police announced Tuesday.
Doctors ask Liberal government to reconsider capital gains tax change
The Canadian Medical Association is asking the federal government to reconsider its proposed changes to capital gains taxation, arguing it will affect doctors' retirement savings.
Keeping these exotic pets is 'cruel' and 'dangerous,' Canadian animal advocates say
Canadian pet owners are finding companionship beyond dogs and cats. Tigers, alligators, scorpions and tarantulas are among some of the exotic pets they are keeping in private homes, which pose risks to public safety and animal welfare, advocates say.
Thieves use stolen forklift to rip cash machine out of U.K. bank
Police in the U.K. are searching for a group of suspects seen on video using a forklift to steal a cash machine from a bank.
'There was a lot of black smoke': Crane operator sounds alarm while trapped during highrise fire in Halifax
A tower crane operator alerted emergency crews after noticing a fire on a construction site in Halifax Tuesday morning.
Cherry blossoms blooming in Canada: Here's what to know
There is a swaying sea of colour in some cities across Canada, and it's a sure sign of spring: cherry blossoms are in bloom.