Canada plagued by crypto investment fraud – protect yourself from scams

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Crypto scams: Investment fraud running rampant across Canada



“Rising Investment Scams Expose Canadians to Massive Losses: What You Need to Know

Investment scams are nothing new, but over the past few years, they have exploded across Canada. According to data from the Canadian Anti-Fraud Centre (CAFC), the amount of money reported lost to investment scams has multiplied by nearly 20 times from 2019 to 2023. This sharp increase has raised significant concerns and begs the question: What exactly is causing this surge in investment scams?

The Crypto Connection:

The CAFC estimates that over 50 per cent of investment fraud reports and money loss are associated with fraudulent crypto investment platforms. This suggests that the rise in cryptocurrency has opened the door for potential fraudulent activities, leaving many Canadians vulnerable and at risk of substantial financial loss.

Ontario in the Spotlight:

Statistics specifically for Ontario paint a similar picture in terms of the growing issue of investment scams. In 2019, the CAFC received 145 reports from 124 victims totaling a little more than $4.5 million. Four years later, that annual total has swelled to 1,341 reports with nearly $111.3 million in losses.

The Human Toll:

For those who have fallen victim to investment scams, the situation can be devastating. The Lloyd’s, for example, were recently robbed of more than $177,000 through a line of credit in a cryptocurrency scam. Victimized investors like them are left feeling helpless, betrayed, and emotionally distraught.

The Enforcement Challenge:

OPS says investment fraud cases, especially those involving cryptocurrency, are incredibly difficult cases to crack. The money trail often leads to overseas jurisdictions that may not cooperate with Canadian law enforcement, making it hard to hold perpetrators accountable.

Protecting Yourself:

The CAFC has provided a list of warning signs and tips on how to protect yourself from investment fraud. These include being cautious with cryptocurrency transactions, doing thorough research before investing, and verifying the legitimacy of investment companies with provincial securities regulators.

Conclusion:

Investment scams are not just a minor inconvenience; they can have severe and long-lasting effects on the lives of those who fall victim. With the rise of cryptocurrency, it is now more critical than ever for Canadians to stay vigilant and aware of potential fraudulent schemes. By staying informed, doing thorough research, and being cautious, Canadians can protect themselves from the devastating financial and emotional impact of investment scams.”



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