Sophisticated crypto scams targeting B.C. residents through social media and dating sites

B.C.

2021-11-03 09:00 PDT

The B.C. RCMP, British Columbia Securities Commission (BCSC), Canadian Anti-Fraud Centre (CAFC) and municipal police are warning the public about an emerging trend of fraudsters using social media and online dating sites to lure B.C. residents into crypto-asset scams.

In the first eight months of 2021, British Columbians reported losses of $3.5 million from crypto investment scams – more than triple the amount lost last year, which was just over $1 million, according to CAFC data. On average, only five per cent of fraud victims report such incidents to authorities.

Fraudsters are adapting their techniques to the latest trends and technologies, using a variety of tactics to defraud victims:

The BC RCMP, BCSC, CAFC and municipal police are urging British Columbians to exercise caution when buying or selling crypto-assets due to various risks, including the loss of some or all of their investment. According to the CAFC, there has been a 5600 per cent increase in fraud to a total of $28.5 million involving cryptocurrency in Canada since 2015. This upward trend is expected to continue.

Investors can protect themselves by:

  1. Buying crypto-assets through a registered trading platform. Check the Canadian Securities Administrators’ National Registration Search to see if the entity is registered with securities regulators.
  2. Never sending money or investing based solely on the advice of someone they met through social media or a dating site.
  3. Being extremely cautious about unsolicited offers to invest through social media or dating sites.
  4. Being skeptical of guaranteed high returns with little or no risk: Generally, the higher the return, the higher the risk.
  5. Resisting the pressure to buy. Fraudsters can have you signed up before you even know it. If you ever feel you’re being rushed, remember, it’s OK to say no or ask for more time.
  6. Ignoring the fear of missing out. Fraudsters are skilled at making it sound like their offer is making others rich while you sit on the sidelines.
  7. Asking questions. Fraudsters work hard to override your instincts with complex documents and use overcomplicated, inconsistent, jargon-filled explanations. If you can’t understand it and can’t get your questions answered, walk away.

If you do fall victim to a fraud or know someone who has, individuals should contact their local police service and the CAFC by phone at 1-888-495-8501 or online by way of the Fraud Reporting System (FRS), even if a financial loss did not occur. If you have been the victim of an investment scam or know someone who has, also report it the BCSC.

Quotes:

Superintendent Brent Taylor, Officer in Charge of the Federal RCMP Financial Integrity Program in B.C.

The recent growth in crypto-related and cyber enabled frauds has not gone unnoticed. Police enforcement cannot stop this activity without the assistance of the public. Better educating yourself using legitimate sources before investing is key. Doing your homework can go a long way toward protecting your money and investments.

Doug Muir, the British Columbia Securities Commission’s Director of Enforcement

Fraudsters use social media and dating apps to manipulate people looking to make meaningful connections, exploit their victims’ trust, and then defraud them of significant amounts of money. Be extremely wary if you are contacted out of the blue or promised high returns that sound too good to be true. Always research the investment and the person selling it before you invest.

Deputy Chief Howard Chow, President of the British Columbia Association of Chiefs of Police

Fraudsters prey on victims by taking any opportunity to exploit their vulnerabilities. The public must recognize the importance in educating themselves on crypto and cyber related crimes, prior to investing or transferring currency. The public arming themselves with current and accurate information may be the difference in identifying and preventing a fraud, before it’s too late.

Sergeant Guy Paul Larocque, Officer in Charge of the Canadian Anti-Fraud Centre

Every year, thousands of Canadians fall victim to fraud. Most don’t think it could happen to them, but fraudsters are using increasingly sophisticated ways to target people of all ages, as can be seen with the crypto investment scams. It is important for victims to know that they are not alone and that by reporting the crime they are helping themselves and others.

About the British Columbia Securities Commission

The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:

About the Canadian Anti-Fraud Centre

The Canadian Anti-fraud Centre (CAFC) is Canada's central repository for information about fraud. The CAFC is jointly managed by the Royal Canadian Mounted Police, the Competition Bureau Canada, and the Ontario Provincial Police.

Media Contacts:

Sgt. Kris Clark
Media Relations Officer
Federal Serious & Organized Crime (FSOC)
778-290-3961
bcfederalmedia@rcmp-grc.gc.ca

Elise Palmer
British Columbia Securities Commission
604-899-6830
mediarelations@bcsc.bc.ca

Canadian Anti-Fraud Centre
media@antifraudcentre.ca

Released by

Sgt. Kris Clark

Media Relations Officer
Federal Serious & Organized Crime (FSOC)
14200 Green Timbers Way, Surrey, B.C. V3T 6P3
Office: 778-290-3961
Fax: 778-290-6092

Email: bcfederalmedia@rcmp-grc.gc.ca

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