British Columbians lost $24 million to crypto scams in 2022: CAFC
British Columbians lost nearly $24 million to crypto scams last year, according to the Canadian Anti-Fraud Center (CAFC).
An advertisement for Bitcoin, one of the cryptocurrencies, is displayed on a building in Hong Kong on November 18, 2021. Canadian cryptocurrency company Hut 8 Mining Corp. says it has signed an agreement to merge with US Data Mining Group Inc., the company behind US Bitcoin Corp. THE CANADIAN PRESS/AP-Kin Cheung
British Columbians lost nearly $24 million to crypto scams last year, according to the Canadian Anti-Fraud Center (CAFC).
In a press release from the BC Securities Commission (BCSC), the BCSC, BC RCMP and CAFC are encouraging people to learn how to spot these types of scams.
The BCSC says that according to CAFC data, the losses are almost three times what was reported in the province in 2021.
Canadians as a whole also saw a “simmering $530 million” in losses, the release said, adding that was a 40 percent increase from 2021.
BCSC says research indicates that young adult investors in BC are looking for advice on social media. “They take a more speculative and risky approach to investing,” the release said.
Seeing the “red flags”
There are some ways to protect yourself from fraud, the BCSC notes, adding that it’s possible to “spot the red flags.”
It points to some common crypto scams, which “promise ‘guaranteed’ high returns on an investment.”
Additionally, if something is full of “complicated jargon and language,” that could also be a red flag, the BCSC says.
“Fraudsters often exploit the mystique of complex new technologies, such as blockchain or artificial intelligence, to project a veneer of expertise and authority.”
In addition to these tips, the BCSC says other potential problems include if a seller is unregistered, “unsolicited offers” or “pressure to buy.”
“Take your time and research an investment opportunity, ask questions and speak with a registered professional before making a decision,” the release said.
“Investment scams, including crypto scams, have targeted and stolen Canadians’ hard-earned money. With reported fraud losses reaching an all-time high, the CAFC wants to encourage everyone to take the time to research investments and understand scammers’ tactics before ever sending money or personal information, said Sgt. Guy Paul Larocque, acting officer in charge of the CAFC, said.
