Canadian Police Alert Investors as Cryptocurrency Scams Continue to Grow

In 2024, there was a 37% increase in cryptocurrency scam in Durham, Ontario, Canada. Local police are reminding citizens to be cautious and do research before investing their hard-earned money.

Cryptocurrency investment scams and pig-butchering scams are becoming more common in the area. Last year, Durham lost at least $18.6 million to these scams.

Police found that many of the victims were trying to make quick money by investing online after seeing investment advertisements ‘endorsed’ by celebrities. They were targeted by scammers on social media, online ads, fraudulent websites, and sometimes even by people they trusted. These so-called investment ads often promise people unbelievably high returns and little risks that can be ignored.

Scammers direct victims to fake cryptocurrency websites, and give them logins and passwords that lead them to top up and buy cryptocurrency.

These fake websites intentionally make victims believe that their account balance is growing steadily, making them want to invest more money. However, the so-called “balance” is not real and the investor's money goes directly to the scammers.

In order to win the investor's trust, the scammer allow small withdrawals at the beginning of the scam, so that the investor feels comfortable to deposit more into the fraudulent platform. However, when the victim wants to make more profit, the scammer ask for additional fees, such as “taxes”.

The scammer is doing everything to take more money from the victim, while the victim can't get his or her money back.

Some scams that pretend to be legitimate companies require victims to provide copies of their identifying information, putting them at risk of identity fraud.

The Canadian police urge investors to verify whether a service provider is properly registered and out of the Investor Alert before making any investment decision.