Crypto scams targeting British Columbians

Nov 3, 2021 | 12:43 PM

British Columbians are being targeted with sophisticated crypto-asset scams through social media and online dating sites.

The B.C. RCMP, British Columbia Securities Commission (BCSC), Canadian Anti-Fraud Centre (CAFC) and municipal police say that in the first eight months of 2021, British Columbians lost $3.5-million to these scammers.

The agencies note that was triple the amount lost to similar scams in all of 2020.

The RCMP say the increase comes as fraudsters are adapting their techniques to the latest trends and technologies, and are using a variety of tactics to defraud victims. These tactics include:

Approaching a person through social media or dating apps, forming an online relationship, and then bringing up an ‘investment opportunity.’ Once that initial payment is obtained, it’s often easy for fraudsters to convince victims to continue investing, leading to significant losses.
Fraudsters identifying a person’s friend, taking control of that person’s social media, and then, while posing as that person, convinces others to participate in the ‘investment opportunity.’
Fraudsters research their potential victims online and then come up with tailored strategies for each victim to maximize their chances of success.
While pitching a crypto-investment, the fraudster may try to convince a person to provide remote access to their computer, where they will show a fraudulent site, and many cases this leads to people investing until they discover their funds cannot be withdrawn.
Fraudsters may claim they will use a victim’s money to buy crypto-currencies, and then after receiving the funds cut off all communication.

Water Shut Off Response

Fruit Growers Association call for plan to support farmers amid water shortage

4h ago

42-Unit Project

Fees waived for new supportive housing project in Vernon

5h ago

Investigation underway

One person deceased after fire at North Okanagan farm

8h ago

The RCMP, BCSC. CAFC and municipal police ask that British Columbians be extremely cautious when buying or selling crypto-assets due to various risks, including the loss of some or all of their investment.

The CAFC report there has been a 5,600 per cent increase in fraud involving crypto currency in Canada since 2015, and a total of $28.5-million has been lost over that period.

This upward trend in scams are expected to continue, and the agencies recommend investors protect themselves by:

Only buying through a registered trading platform
Never send money or invest based solely off information from someone online
Be cautious of unsolicited offers online, even if it comes from someone you know
Be skeptical of ‘guaranteed high returns’ with ‘little’ or ‘no risk’
Resist the pressure to buy
Ignore the fear of missing out
Ask questions, as fraudsters will often use over complicated jargon, and if they can or will not clarify then do not invest

Anyone who does fall victim to any fraud is advised to contact the local police service and the CAFC at 1-888-495-8501 or through the online Fraud Reporting System, even if a financial loss did not occur. Investment scams should also be reported to the BCSC.

by Liam Verster

View Comments