Cryptocurrencies haven’t fully become mainstream yet they have already become a way for fraud artists to steal money from unsuspecting victims. In fact the amount of cash that Canadians have lost through such fraud has more than tripled lately.
The cryptocurrency scams are just escalating because interest in Bitcoin and other cryptocurrencies has been increasing. There are in fact some 3000-4000 crypto tokens out there so there are various ways to access these.
There are many fraud cases where scammers phone victims or otherwise contact them maybe by email claiming that they owe them some money. Sometimes they even convince the victims into believing that they need to bail someone out. These scammers then claim that the amount they are asking for should be paid in bitcoin or another cryptocurrency. So the desperate person i.e. the victim ends up finding some way of trading their real cash for this cryptocurrency. They then end up turning over the crypto that they have paid for in cash and that is how the scams are perpetrated.
The Government of Saskatchewan in a recent press release warned the people of a rise in fraudulent crypto-related investment opportunities.
The Financial and Consumer Affairs Authority of the province cautioned of ostentatious advertisements that promise high returns on investments. These advertisements the departments said targeted people were keen on increasing their income for retirement.
The provincial government further stated that the scammers created bogus websites and used fake recommendations. They send private messages to people convincing them to become part of the fraudulent scheme by investing their money for high returns.
The government admitted that cryptocurrency is quite complex, thus investors could find themselves in a position where they are uncertain about investment opportunities. In order to address this, the province listed down a few warning signs. These could include signs such as guarantees of higher than standard returns on investment – investors usually fall for such guarantees. Mostly these scammers promise zero-risk investment, and this itself is a catchphrase. There is no investment that does not involve some degree of risk. No matter how small or big but with investment there always will be some risk.
Other methods these fraudsters use are pressure tactics and complex documentation. These scammers hardly are ever keen on giving advice and this is a big indication if their dodge. Lastly, fraudsters and scammers use technical language and jargon just to confuse the victim.
Although it is hard to wrap your head around this, nonetheless, there are some tips that one can use to protect oneself. The usual caveats apply anytime anyone calls demanding money be a little skeptical and also especially if it involves cryptocurrency payments.
Saskatchewanian government advises its people to do a thorough examination of the website that claims such investments. It further added that people should be mindful of impressive statements that are difficult to believe.
