Between 2017 and 2020, Canada has seen a spike in cryptocurrency scams. Private citizens are increasingly being scammed as the number af victims has risen by 400% between 2017 and 2020.
Just in the first 8 months of 2020, Canadian private investors have lost an estimate of CAD $11 million, or some USD $8.73 million, to an alarming number of crypto scams. These numbers were commented on by Sgt. Kris Clark, a federal organized crime officer in the Royal Canadian Mounted Police (RCMP).
Clark also added that scammer often applies pressure on investors to deposit, and sometimes extort. He also mentions the possibility of violence if users are not willing to pay to the scammer! He comment on the way to detect these fraudsters, “They will often identify themselves as a government official or police officer to increase the level of jeopardy if immediate action is not taken by the target to pay.”
Sgt. Clar also advised users never to give away personal information to unverified brokers. That is why he urges users to always check for a license.
In recent years, the price of cryptos has risen exponentially, which has increased the demand for digital coins by retail investors. In turn, scammers have been focusing on these users, more so in the last couple of years, and have been using a number of soliciting tactics to get a hold of user’s funds. However, local authorities have also been putting a lot of effort into diminishing these schemes.