British Columbians lost $24M in crypto scams in 2022: CAFC

British Columbians lost nearly $24 million in crypto scams last year, according to the Canadian Anti-Fraud Centre (CAFC).

In a news release from the B.C. Securities Commission (BCSC), it says the BCSC, the B.C. RCMP and the CAFC are urging people to learn how to spot these types of scams.

The BCSC says that according to data from the CAFC, the losses are nearly triple what was reported in the province in 2021.

Canadians as a whole also saw a “staggering $530 million” in losses, the release reads, adding that was a 40 per cent increase from 2021.

The BCSC says research points to young adult investors in B.C. looking for advice on social media. “They are taking a more speculative and risky approach to investing,” the release reads.

Spotting the ‘red flags’

There are some ways to protect from scams, the BCSC notes, adding that it is possible to “spot the red flags.”

It points to some common crypto scams, like “promises of ‘guaranteed’ high returns on an investment.”

Additionally, if something is full of “complicated jargon and language,” that can be a red flag as well, the BCSC says.

“Scammers often exploit the mystique of complex new technologies, like blockchain or artificial intelligence, to project a veneer of expertise and authority.”

On top of these tips, the BCSC says other potential problems include if a salesperson is unregistered, “unsolicited offers,” or “pressure to buy.”

“Take your time and research an investment opportunity, ask questions, and talk to a registered professional before making a decision,” the release reads.

“Investment scams, including crypto scams, have been targeting and stealing Canadians’ hard-earned money. With reported fraud losses reaching an all-time high, the CAFC wants to urge everyone to take the time to research investments and understand fraudsters’ tactics before ever sending money or personal information,” Sgt. Guy Paul Larocque, the acting officer in charge of the CAFC, said.