Warning: Beware of Rising Cryptocurrency Scams in Canada 🚨
Recently, the Canadian Anti-Fraud Centre (CAFC) issued a warning about the increasing number of crypto scams targeting Canadian citizens. These scams involve various tactics, including pig butchering or romance scams and investment scams.
Types of Crypto Scams Targeting Canadians 🎯
- Pig butchering and romance scams
- Fraudsters establish fake relationships to lure victims
- Scammers pose as investment advisors
- Investment scams promising unrealistic returns
- Victims’ funds are locked once invested
- Victims can only withdraw small amounts initially
Response and Recommendations from Authorities 🛡️
- CAFC and CIRO have collaborated to raise awareness
- Citizens advised to report any fraud incidents
- Prompt reporting helps combat scams effectively
Impact of Crypto Scams on Canadians 💔
Canadians have fallen victim to investment frauds amounting to $309.4 million in 2023, with social media-related frauds contributing $172 million to the total. To address these issues, Canada plans to adopt the Crypto-Asset Reporting Framework (CARF) by 2026 for taxation purposes.
The Rising Trend of Crypto Romance Scams 💔
- US citizens also affected by romance scams
- Significant financial losses reported
- Example: Shreya Datta’s $450,000 loss to a romance scam
“We are receiving 5-6 emails a day from people who are victims of pig butchering. The most recent victim lost $5 million dollars and that’s not even the biggest amount one victim has lost to this scam.”
Stolen funds funneled overseas to criminal organizations, using trafficked individuals in pig butchering scams.
Hot Take: Be Vigilant Against Crypto Scams 🔥
As a crypto enthusiast, stay alert and cautious when approached with offers that seem too good to be true. By being proactive and reporting any suspicious activities, you can help protect yourself and others from falling victim to these scams.
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