Canadian Police Warn Citizens About Cryptocurrency Scams
The police in Calgary, Alberta, have issued a targeted warning to citizens about the increasing number of cryptocurrency scams in the area. According to officials, residents have reported 340 crypto scams this year, resulting in losses of over $22.5 million. This is a significant increase compared to last year when residents lost $14 million across 321 reported scams.
The police believe that these figures are likely underreported, highlighting the need for caution when dealing with cryptocurrency. While acknowledging that most cryptocurrencies are legitimate, they emphasized that the deregulated nature of the market makes it susceptible to fraud and scams.
Rise in Investment Scams and Online Promises
Investment scams are among the most common types of scams reported. Scammers typically promise victims higher returns if they send funds upfront. The police warned against falling for such schemes and emphasized that legitimate investments do not require full payment upfront.
An example of a well-known scam is the Michael Saylor phishing videos, where scammers posing as the Bitcoin billionaire promise to double victims’ Bitcoin holdings in exchange for sending their BTC to the scammer’s wallet.
Additionally, the police cautioned against individuals promising large returns in the crypto markets online or on social media and dating apps. Such messages are likely to be part of a scam.
Calgary’s Unique Situation
The city of Calgary, historically known for its oil industry, has been ranked as one of Canada’s most livable cities. However, it has also become a hotspot for crypto scams. The Calgary Police did not respond to Decrypt’s request for comment on this matter.
Chainalysis Report and Survey Findings
According to Chainalysis, scams continue to dominate crypto-related crimes globally. However, their 2023 mid-year update shows a decrease in global crypto crime compared to the previous year, which is not the case for Calgary.
A survey conducted by Toronto Metropolitan University revealed that one-third of digital asset owners in Canada have fallen victim to crypto scams. In addition to scams, there have been instances of crypto theft from homes by individuals impersonating delivery persons or authority figures, as warned by the RCMP.
Hot Take: Protect Yourself from Crypto Scams
With the increasing prevalence of cryptocurrency scams, it is crucial to stay vigilant and protect yourself from falling victim to fraud. Be cautious when dealing with investment opportunities that promise unrealistic returns or require upfront payments. Avoid sharing personal information related to your crypto holdings online or with strangers on social media and dating apps. Remember that legitimate investments do not demand immediate full payment. Stay informed about the latest scam tactics and report any suspicious activities to the authorities. By staying alert and educated, you can safeguard your hard-earned money in the crypto space.
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