In a recent report, the Canadian police department issued a notice to the citizens of Calgary warning them of the recent hike in scams and fraudulent activities related to cryptocurrency. In addition, the notice talked about the potential regulations the country’s authority is working to protect its citizens from the scams that plague the crypto industry.
According to the report, there has been a surge in crypto-related scams and thefts in Calgary, Alberta, Canada. The new development has prompted the local authorities in the region to send a specific warning to its people. Also, the report showed that investors in Calgary have recorded a massive loss in crypto-related investment, with a cumulative $22.5 million this year alone.
Furthermore, the country’s officials reported that there has been a significant surge in crime rates in the crypto space. For instance, a total of $14 million was reported lost across 321 scams in the whole of 2022 in Calgary. However, in 2023, so far, the city has witnessed more than 340 scam cases, which amount to more than $22.5 million in loss of investments.
Authority Warns Citizens Of Increasing Crypto Scams
In addition, the Canadian authority stated in the report that there is a possibility that the actual scam rate might be underrepresented by the given figures, hence warning the citizens to be careful. For context, Calgary is a cosmopolitan city that houses a more significant portion of Canada’s oil industry. The town, which was described by the Economist Intelligence Unit as the third most lively city, is currently under duress due to rampant crypto-related scams in the region.
The report revealed that the most common scams plaguing the city are investment scams, which typically involve bad actors luring victims with enticing promises of higher returns if they invest their funds in a particular crypto project that was secretly designed to scam investors. In the notice, the authority warned investors to be wary of any investment that requests a full payment before fulfilling the returns it proclaims.
A typical example of these scams was the phishing videos that impersonate Micheal Saylor, a prominent Bitcoin billionaire, which scammers use to lure victims into sending their BTC assets and their wallets with promises to double any amount sent. In 2022, an unsuspecting investor fell victim to this scheme as he sent about $1.1 million in BTC to a wallet address provided by some scammers.
Crypto-Related Crimes Abounds Globally
Apart from investment scams, the authorities pointed out in their warning notice that the residents should be cautious of people who approach them on media platforms, promising attractive returns for their investments on their proposed crypto projects. The authority said these types of scams are on the rise and urged its citizens to be wary of them.
Furthermore, there are reports of scammers on social media platforms pretending to be looking for love. Once they get acquainted with an interested partner, they eventually present some scammy crypto projects to their supposed online partners, luring them to invest in their crypto schemes and eventually running off with the victims’ funds.
However, the report revealed that crypto-related scams are not restricted to Calgary alone but a worldwide problem that plagues the crypto industry. Chainalysis, an on-chain crypto analytic firm, stated that crypto-related crimes are dominated by scams. Nonetheless, other prominent schemes include ransomware attacks, darknet activities, and hacks.
There Is a Need For Crypto Scam Awareness
Meanwhile, Chainalysis released a publication in mid-2023 stating that there has been a significant decline in the rate of crypto crimes compared to the 2022 rate. But, the reported decline seemed not to favor Calgary.
Furthermore, in June 2023, the Toronto Metropolitan University conducted a survey to explain the scope of scams plaguing the crypto industry. According to the report, about one-third of Canadian crypto investors have fallen victim to one or more crypto-related scams before. This reportedly showcases the poor vigilance and awareness level among crypto investors and need for improvement.
The Canadian authority concludes that as the cryptocurrency innovation continues to gain worldwide adoption, there is a significant rise in the criminal activities plaguing the industry. This notice underscores the need for both crypto investors and the authority to be aware of these scams to prevent loss of investments.
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