The Canadian authorities cautioned the people as the crypto scammers are adopting new ways to scam them. The authorities further advised that discussing crypto with the match on a dating app is a red flag for them.
During this summer, crypto scammers are highly active in hunting their prey, especially on websites and dating apps. However, some love birds paid a heavy amount in this process.
The Canadian Anti-Fraud Centre (CAFC) highlighted two particular types of scammers who are currently active. This includes pig butchering, romance scams, and investment scams.
The Canadian Anti-Fraud Centre and the Canadian Investment Regulatory Organization (CIRO) stated they be aware of these scams, “particularly those involving extended online communication.”
These scammers identify their victims and request that they chat on private messaging services. The authorities warn them to be careful of those who talk about crypto investment or trading on such platforms.
“Fraudsters may try to befriend the victim, develop an online romance, or pose as legitimate investment advisers. Over time, the scammer will suggest investing in an opportunity, often involving crypto assets.”
Investment Scams Surge: Canadians Lose Millions
On these platforms, scammers provide multiple investment schemes with impressive returns. Once they agree, they must sign up on a fake platform prepared by scammers. The investment is locked immediately once their identity is compromised.
In the beginning, scammers allow them to withdraw some of the amounts to gain their trust.
Canadians express these frauds to CAFC, CIRO, and local authorities.
According to a report, Canadians lost a total of $309.4 million in the name of investment frauds in 2023. Of this, a total of $172 million was from social media fraud.
Canada plans to use the international Crypto-Asset Reporting Framework (CARF) for taxes by 2026, as outlined in a supplement to the 2024 annual budget.
The CARF will soon implement new reporting rules for crypto asset service providers (CASPs), including exchanges, brokers, dealers, and ATM operators. This applies to both individuals and businesses.
A report listed “stablecoins, derivatives issued in the form of a crypto-asset, and certain nonfungible tokens” as an example.
“Crypto-asset service providers would be required to obtain and report information on each of their customers, including name, address, date of birth, jurisdiction(s) of residence, and taxpayer identification numbers for each jurisdiction of residence,” as stated in the report.
