Bitrabo Editorial
As the summer season unfolds, a surge in crypto scams targeting individuals on Canadian dating apps and websites has been noted by the Canadian Anti-Fraud Centre (CAFC). These scams involve romance and investment frauds, commonly known as ‘pig butchering,’ and employ sophisticated strategies utilizing cryptocurrencies.
Combatting Crypto Scams on Dating Platforms
The scams typically start by scammers building relationships on dating sites and then quickly transitioning to private messaging services to isolate their targets.
As the relationship progresses, the scammers introduce the idea of profitable digital currency investments, taking advantage of the trust established to lure victims into making financial commitments.
Victims are coerced into investing in high-yield crypto schemes on seemingly legitimate platforms. Initially, victims are allowed to withdraw funds, creating a false sense of security.
However, as larger sums are invested, access to funds is restricted or cut off entirely, with scammers disappearing or platforms being shut down, resulting in significant financial losses for investors.
Moreover, personal information provided during the investment process increases the risk of identity theft or other fraudulent activities in the victim’s name.
Recognizing the gravity of these crimes, the Canadian Investment Regulatory Organization (CIRO) has teamed up with the CAFC to combat these deceptive practices.
Both organizations have issued public alerts, stressing the importance of caution when considering investment opportunities with new or unverified contacts, especially those involving digital currencies.
They urge individuals who come across or suspect such scams to promptly report them to the authorities to prevent further harm and aid in holding the perpetrators accountable.
Institutional Adoption on the Rise Amid Fraud Concerns
This surge in fraudulent activities coincides with the increasing adoption of cryptocurrencies in Canada, particularly among institutional investors.
A recent survey conducted by KPMG in Canada and the Canadian Association of Alternative Assets and Strategies (CAASA) revealed a significant uptick in institutional involvement with cryptocurrencies.
Between 2021 and 2023, the percentage of institutional investors holding crypto assets rose from 31% to 39%. Notably, one-third of these institutions have allocated at least 10% of their portfolios to cryptocurrencies, showcasing a strong belief in the long-term potential of the asset class.
This growing interest in digital currencies has prompted Canadian financial institutions to enhance their crypto-related offerings. The survey indicated that half of these institutions now provide at least one crypto service, up from 41% two years ago.
These services encompass trading platforms, custody solutions, and quantitative trading strategies tailored for the digital currency market.
Featured image from Unsplash, Chart from TradingView