Canada Faces 400% Increase in the Cryptocurrency Fraud
The Canadian police department is warning people to protect their personal information and perform proper due diligence in order to avoid rising cryptocurrency fraud.
Fraud through digital currency is spiking in Canada as the number of victims is increased by 400 per cent from 2017 to 2020.
“Cryptocurrency fraud is increasing dramatically in Canada, with a difference of more than 400 per cent between 2017 and 2020,” said Sgt. Kris Clark, a federal officer at, RCMP, the serious and organized crime department.
He also disclosed that Canadian citizens lost around CAD 11 million to many different cryptocurrency scams in the first half of last year.
The cryptocurrency market is booming as the value of cryptocurrency skyrocketed recently. There is more demand for cryptocurrency by retail investors. Fraudsters from around the globe are using various sophisticated methods to make money from the valuable groups looking to invest in cryptocurrency.
Recently, a report by Finance Magnates revealed that a citizen of the Canadian city, Vancouver, lost around $2 million in a week in crypto-related scams.
“They will often pressure the target, or threaten with extortion or violence, in order to get them to pay quickly,” said Sgt. Clark. “They will often identify themselves as a government official or police officer to increase the level of jeopardy if immediate action is not taken by the target to pay.”
The federal officer also advised people to protect their personal information and not to give it out in any case. Business organizations are also required to verify the legitimacy of organizations before getting involved with them in any way.
The federal officer also highlighted that people must understand the police department or government agencies do not require payment through the cryptocurrency exchange. The urgent demand to pay by the legit companies will also give secure options and enough time to pay.
Law enforcement is taking strong actions against the scammers in Canada. The neighbouring country, the USA, is also facing the rise in crypto scams and they have caught several criminals who were involved in taking out millions of dollars in crypto scams.
