In the year 2023, residents of Calgary, a city in Alberta, Canada, have seen an alarming surge in crypto scams, leading to a loss of over $22 million. This figure, as per the Calgary Police Service (CPS), shows a significant increase from the approximately $14 million lost in 2022.
Escalating Crypto Scam Cases
The number of reported cryptocurrency scams has also witnessed a hike. While 2022 saw 321 cases, 2023 has already recorded 340 cases. However, the CPS believes that the actual figure is much higher, as many victims of crypto scams choose not to report their losses.
In response to this growing issue, the CPS has urged Canadian investors to remain vigilant. They have been warned about the different tactics that scammers employ to defraud unsuspecting victims, especially the promises of exorbitant returns on crypto investments.
Common Scamming Tactics
As per the CPS, investment scams are the most prevalent type of crypto scams. Scammers lure victims with the promise of high profits, a clear red flag. They also impersonate legitimate government agencies, demanding full payment over the phone, usually in cryptocurrency, or issuing threats.
Staff Sergeant Graeme Smiley of the Calgary Police Service Cyber Forensics Unit has emphasized the need for awareness, stating, “While cryptocurrency can be used legitimately, fraudsters often lure victims with promises of a quick way to make money.” The CPS now has a dedicated Blockchain Investigative Team to probe these scams.
Investor Trust in Crypto Exchanges
A survey by the Dais, the think tank of Toronto Metropolitan University, revealed that about 35% of Canadian crypto holders have fallen victim to crypto fraud. Additionally, nearly half of the respondents expressed a lack of trust in crypto exchanges. Scammers have also been found impersonating legitimate companies to defraud investors.
Given the rising incidence of crypto scams, it’s crucial to stay informed and vigilant. Platforms like cryptoview.io provide a secure environment for managing your crypto portfolio, helping you steer clear of potential scams.
