Escalation of Crypto Scams in Canada
The Canadian Anti-Fraud Centre (CAFC) has issued a cautionary alert regarding the steep rise in cryptocurrency scams targeting Canadian residents. The scams, which involve deceptive practices such as pig butchering or romance scams and fraudulent investment schemes, have become a growing concern.
“Fraudsters may attempt to establish a friendship or develop an online romance, or they may pose as legitimate investment advisers. Over time, the scammer will propose an investment opportunity, often involving crypto assets,” the warning states.
Victims of these scams often encounter promises of impractical returns on their crypto investments. The scammers manipulate victims into registering on fake investment platforms and then freeze their invested funds after gaining access to their personal information. While victims are sometimes allowed to withdraw small amounts initially to maintain the illusion of legitimacy, they eventually face total loss.
It is strongly recommended that Canadian citizens promptly report any instances of fraud to the Canadian Investment Regulatory Organization (CIRO), the CAFC, and local law enforcement agencies. Rapid reporting helps authorities effectively combat these fraudulent activities.
Global Impact of Crypto Scams
Moreover, crypto romance scams have not spared individuals in the United States, leading to substantial financial hardships. In a recent incident, Shreya Datta, a 37-year-old technology professional from Philadelphia, fell victim to a cryptocurrency romance scam, resulting in a devastating loss of $450,000.
As stated by Erin West, Deputy District Attorney in Santa Clara, California, who receives numerous complaints of pig butchering scams, “the stolen funds are laundered overseas to transnational criminal organizations in Myanmar and Cambodia, utilizing trafficked individuals as virtual slaves for executing the pig butchering scams.”
