Police say more than 40 residents in communities north of Toronto have fallen victim to a Bitcoin (Bitcoin) tax scam, sending over $300,000 to fraudsters since August, CBC News reported.
York regional police say the machines are being used in the latest version of a Canada Revenue Agency (CRA) scam, in which fraudsters posing as tax collectors or police officers threaten to arrest potential victims over tax issues.
The suspects tell victims they have overdue taxes to pay, and threaten them with arrest if they don’t settle up.
Police say Bitcoin ATMs are legitimate, however, the nature of the currency means that once the conversion is made, following the money becomes practically impossible.
"There really isn't anything at this point, it's a one way street," said York Regional Police Det. Const. Rob Vingerhoets.
"The only way to recover it would be for the person who received the Bitcoin to send them back… If they're a criminal, they're not likely to do that."
Police in York Region have advised the public that any calls or emails asking for Bitcoin tax payments should be treated as a scam.