The Canadian Anti-Fraud Centre (CAFC) has warned about a surge in crypto scams targeting Canadian citizens.

In a Tuesday announcement, the anti-fraud call centre said there has been an increase in two specific types of cryptocurrency scams targeting Canadian citizens, including pig butchering or romance scams, and investment scams.

In response to this concerning trend, the CAFC, in collaboration with the Canadian Investment Regulatory Organization (CIRO), has issued a warning to raise awareness about these sophisticated scams, particularly those involving prolonged online communication.

The CAFC, in collaboration with the Canadian Investment Regulatory Organization (CIRO), warned citizens to exercise caution when engaging with individuals who discuss cryptocurrency trading or investments.

“Fraudsters may attempt to establish a friendship or develop an online romance, or they may pose as legitimate investment advisers. Over time, the scammer will propose an investment opportunity, often involving crypto assets,” the warning states.

Crypto Investment Schemes Promise Unrealistic Returns

Victims are frequently presented with crypto investment schemes promising unrealistic returns.

Scammers create fraudulent investment platforms and coax victims into signing up.

Once the victim’s identity is compromised, the scammers lock their invested funds, leaving them unable to access their money.

However, in the initial stages, victims are allowed to withdraw small amounts to give the appearance of legitimacy.

Canadian citizens are strongly urged to report any instances of fraud to the CIRO, CAFC, and local law enforcement agencies.

The prompt reporting of such incidents helps authorities track and combat these scams effectively.

Stay Safe: Expert Insights on Pig Butchering Scams in Crypto

In our latest @AMLBotHQ Stream podcast episode, we butcher this scam typology and break it down for you.

Listen to the full podcast here: https://t.co/2ov3XM8PQo

A rising deception targeting unsuspecting… pic.twitter.com/IIuuVFxeiq

— AMLBot (@AMLBotHQ) May 12, 2024

In 2023, Canadians fell victim to investment frauds amounting to a staggering $309.4 million, making it the most prevalent type of scam that year.

Social media-related frauds alone accounted for $172 million of that total.

As part of the 2024 annual budget, Canada plans to adopt the international Crypto-Asset Reporting Framework (CARF) by 2026, specifically for taxation purposes.

The CARF will introduce new reporting requirements for crypto asset service providers (CASPs), including cryptocurrency exchanges, crypto-asset brokers and dealers, and crypto-asset automated teller machine operators, whether they are individuals or businesses.

Crypto Romance Scams Become Prevalent

Crypto romance scams have also been plaguing US citizens, resulting in significant financial losses.

Just recently, Shreya Datta, a 37-year-old tech professional from Philadelphia, fell victim to a cryptocurrency romance scam that left her financially ruined with losses mounting to $450,000.

As reported, Erin West, Deputy District Attorney in Santa Clara, California, has revealed that she receives an average of 5-6 emails daily from individuals who have fallen prey to pig butchering.

“We are receiving 5-6 emails a day from people who are victims of pig butchering. The most recent victim lost $5 million dollars and that’s not even the biggest amount one victim has lost to this scam.”

Compounding the issue, the stolen funds are funneled overseas to transnational criminal organizations in Myanmar and Cambodia, using trafficked individuals as virtual slaves to carry out the pig butchering scams.

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