British Columbians defrauded out of $24 million in crypto scams in 2022
British Columbians are being bilked out of millions of dollars using cryptocurrency and non-fungible token (NFT) scams, officials say.
According to the BC Securities Commission, the BC RCMP and the Canadian Anti-Fraud Centre, Canadians lost a whopping $530 million in 2022 to fraud and cybercrime, with $24 million lost to crypto fraud in BC
An NFT is a digital resource for a unique item that cannot be replaced or exchanged due to a unique digital footprint, which must be monitored.
The real numbers are expected to be much higher as officials said only five to 10 percent of victims report this type of fraud.
“If the promises of a high return on investment seem too good to be true, you’re probably right,” said Kurt Bedford, BC RCMP Federal Serious and Organized Crime Officer in Charge.
“While our dedicated investigators at the BC RCMP’s Financial Integrity Unit work hard to solve some of the most complex financial crime-related offences, investor education and prevention remains the first line of defense against becoming a victim of investment fraud.”
According to a release from the RCMP, fraudsters are using the popularity and complexity of cryptoassets to target vulnerable investors — primarily through social media.
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Nova Scotia is warning the public about crypto scams resulting in “irreparable” losses
The BC Securities Commission has created an interactive website to help educate people about the dangers of crypto scams and how to spot them, as part of Fraud Prevention Month.
“Investing in crypto is risky, and one of the biggest risks is outright fraud. You can lose all your money,” said Doug Muir, the BC Securities Commission’s director of enforcement.
Some characteristics of crypto scams include:
- Promises of a guaranteed high return on an investment
- Complicated jargon and language that is difficult to understand
- Unregistered seller – many investment scams involve individuals or firms that are not registered to buy or sell investments. Always check AreTheyRegistered.ca before investing
- Unsolicited offers – be extremely careful if you receive unsolicited communications via email, phone, pop-up ads and videos on the internet, or direct messages on social media
- Pressure to buy — fraudsters may try to create a false sense of urgency to take advantage of an investment before it’s too late
Another piece of advice for potential crypto investors – make sure the trading platform used is registered with Canadian securities regulators.
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Police warn of crypto scam after Winnipegger loses $168,000
Three weeks ago in Winnipeg, police issued a warning after a person was scammed out of $168,000 worth of bitcoin.
Winnipeg police say they began investigating in October 2022, after they were told the victim had bought bitcoin over three months and was told to invest it, apparently to make more money.
However, this “investment” was a scam where the victim’s funds were transferred overseas and changed into another form of cryptocurrency.
Anyone who suspects they have been a victim of cybercrime or investment fraud should report it to their local police, the CAFC (either through its online reporting system or by phone at 1-888-495-8501) or to the BCSC.
— with files from Global News’ Sam Thompson
© 2023 Global News, a division of Corus Entertainment Inc.
