Durham Regional Police Service (DRPS) has issued a warning against digital currencies such as bitcoin after residents reported related fraud schemes.

In a statement issued on 10 March, the Canadian Police said that fraudsters contact residents, promising to make money. They also send cheques to the victims, asking money to purchase bitcoins. The victims deposit the cheque into their accounts then use the funds to buy online currency and deposit the Bitcoins into someone else's account.

“For doing this, they are told they can keep a certain amount of the money that was originally sent to them. However, a short time after the victim uses their own money to purchase the Bitcoins, the original cheque or e-transfer bounces”, the DRPS explained.

DRPS also noted that the digital currency have been used in Canada Revenue Agency scams where fraudsters impersonate government employees and ask for income tax payments.

“Police would like to warn the public to be wary of these types of scams. If you have lost money to this scam, call the police. Victims in Durham Region have lost several thousands of dollars through this type of Bitcoin transaction”, it added.