'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
Widow looking for answers after Quebec man dies in Texas Ironman competition
The widow of a Quebec man who died competing in an Ironman competition is looking for answers.
Amid concerns over 'collateral damage' Trudeau, Freeland defend capital gains tax change
Facing pushback from physicians and businesspeople over the coming increase to the capital gains inclusion rate, Prime Minister Justin Trudeau and his deputy Chrystia Freeland are standing by their plan to target Canada's highest earners.
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.
U.S. Senate overwhelmingly passes aid for Ukraine, Israel and Taiwan with big bipartisan vote
The U.S. Senate has passed US$95 billion in war aid to Ukraine, Israel and Taiwan, sending the legislation to President Joe Biden after months of delays and contentious debate over how involved the United States should be in foreign wars.
Wildfire southwest of Peace River spurs evacuation order
People living near a wildfire burning about 15 kilometres southwest of Peace River are being told to evacuate their homes.
World seeing near breakdown of international law amid wars in Gaza and Ukraine, Amnesty says
The world is seeing a near breakdown of international law amid flagrant rule-breaking in Gaza and Ukraine, multiplying armed conflicts, the rise of authoritarianism and huge rights violations in Sudan, Ethiopia and Myanmar, Amnesty International warned Wednesday as it published its annual report.
Train derailed in Sarnia after colliding with a truck
Police are investigating after a transport truck collided with a train in Sarnia.
Fewer medical students going into family medicine contributing to doctor shortage
As some family doctors are retiring and others are moving away from family medicine, there are fewer medical students to take their place.
'It's discriminatory': Individuals refused entry to Ontario legislature for wearing keffiyeh
Individuals being barred from entering Ontario’s legislature while wearing a keffiyeh say the garment is part of their cultural identity— and the only ones making it political are the politicians banning it.