Crypto scams: BC residents targeted on social media

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British Columbians lost $ 3.5 million to crypto investment scams in the first eight months of 2021.

British Columbians should be wary of cyber crooks who use social media and online dating sites to lure residents of British Columbia 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 losses in 2020, the Anti-Fraud Center reported. Canada (CAFC).

And, the CAFC said, there has been a 5,600% increase in fraud totaling $ 28.5 million involving cryptocurrency in Canada since 2015.

On average, only five percent of victims of fraud report such incidents to authorities.

“Scammers use social media and dating apps to manipulate people seeking to build meaningful relationships, exploit the trust of their victims, and then defraud them for large sums,” said Doug Muir, chief enforcement officer of the act to the BC Securities Commission.

“Be extremely careful if you are contacted out of the blue or promise yourself high returns that sound too good to be true,” Muir said. “Always research the investment and the person selling it before investing.”

The commission, police and CAFC have said that fraudsters can carry out the scams in several ways.

Romantic and relationship scams

Scammers can develop relationships online with people, then present an investment opportunity, convince them to make an upfront payment, and then continue to pressure them with sometimes large losses.

In other cases, scammers will identify a target’s friend and pose as that friend to encourage investment in the scam.

And, crooks research potential victims online, including by reviewing their social media posts, to create a tailored strategy to maximize the chances of their theft being successful.

Tech support and crypto scams

Sometimes a fraudster can convince their target to provide remote access to their computer.

The suspect shows the person a fraudulent crypto-investment website that promises substantial returns. In many cases, people will continue to invest until it becomes clear that their funds cannot be withdrawn.

In some cases, scammers may pretend to use an investor’s money to buy digital currencies and then cut off all communication after receiving the funds.

RCMP Superintendent Brent Taylor of the RCMP’s Federal Financial Integrity Program in British Columbia said the growth in scams was not unnoticed.

“Law enforcement cannot stop this activity without the help of the public. It is essential that you educate yourself better by using legitimate sources before investing,” Taylor said. “Doing your homework can go a long way in protecting your money and your investments. “

Derek Manky, head of security intelligence and the Global Threat Alliance for Fortinet, a California-based company in Burnaby, said the sharp rise in cryptocurrency use also matches cyber crooks targeting its use.

“Almost all ransomware attackers these days require payments through some form of cryptocurrency – this also extends to fraudsters and cybercriminals in general,” Manky said.

He said cryptocurrency scams make it much harder to identify the real person behind the keyboard, and they don’t leave easy-to-follow paper trails. “Bad actors are also undoubtedly able to take advantage of the fear, uncertainty and doubt when it comes to cryptocurrency. It’s such a relatively new technology that many people still don’t understand it. completely.”

He said these crooks could expand their wallets to receive funds in their crypto network, including money laundering networks. “For bad actors, that kind of convenience is a given,” Manky said.

What precautions can I take to protect myself from crypto-asset scams?

The police, the commission and the CAFC suggested people could take precautions. They understand:

• Purchase of crypto-assets through a registered trading platform. Check the Canadian Securities Administrators National Registration Search to see if an entity is registered with securities regulators;

• Be extremely careful with unsolicited offers of investment via social networks or dating sites;

• Never send money or invest solely on the basis of advice from someone you meet via social networks or a dating site;

• Be skeptical about guaranteed high returns with little or no risk: In general, the higher the return, the higher the risk;

• Resist buying pressure. Scammers can get you signed up before you even know it. If you ever feel like you are in a rush, remember that it is okay to say no or ask for more time;

• Ignore the fear of missing out. Scammers are good at giving the impression that their offer makes other people rich when you are not, and;

• To ask questions. Scammers work hard to override people’s instincts with complex documents and use overly complicated, inconsistent and jargon-filled explanations. If you can’t figure it out and can’t get your questions answered, go.

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