Cryptocurrency scams are proving to be a rising threat to British Columbians. According to the Canadian Anti-Fraud Centre, nearly $24 million was lost to crypto scams in the province in 2022, up from just $8.5 million in 2021. Of course, this number is only from the reported scams – as the Anti-Fraud Centre mentioned, only five to 10 per cent of victims tend to report.
This dramatic increase in losses to crypto scams led to a joint press release from the B.C. Securities Commission, B.C. RCMP and the Canadian Anti-Fraud Centre to warn the public about these issues. According to the release, young adult investors in the province are more likely to turn to social media sites for their investing advice and information, resulting in a more risky, speculative approach to investments.
For anyone who is looking to invest in cryptocurrency, the RCMP recommends watching out for certain red flags. These include any promises of guaranteed high returns, complex, jargon-laden language, and unscrupulous salespeople who aren’t registered to sell investments. In addition, pressure to buy an investment right away and unsolicited offers should also be a cause for caution.
While the Canadian Anti-Fraud Centre is working to protect the public from crypto scams, investors should still take the necessary steps to make sure they don’t become victims of fraud. They should research their investments thoroughly, make sure all individuals involved are registered, and don’t be taken in by high-return promises. In addition, investors should make sure never to give out personal or banking information to anyone.
Kurt Bedford, from BC RCMP Federal Serious and Organized Crime Operations and Financial Integrity unit, commented that although its dedicated investigators are hard at work to solve complex financial crimes, investors should still be educated on preventing these threats.
It is important to be mindful of the dangers of cryptocurrency scams, and take the extra steps to protect yourself and your investments.
