More than $161M lost to investment scams over the first 6 months of 2023: Canadian Anti-Fraud Centre

Canadians lost more than $161 million to investment scams over the first six months of this year, most of which involved cryptocurrency, according to the Canadian Anti-Fraud Centre.

Canadians lost more than $161 million to investment scams over the first six months of this year, most of which involved cryptocurrency, according to the Canadian Anti-Fraud Centre.

In Calgary, police have received 340 reports of cryptocurrency-related scams so far in 2023, with victims losing more than $22.5 million.

Cryptocurrency scams usually initially appear to be investment opportunities, with promises of big returns, and often, a sense of urgency. The schemes typically involve offers to invest money in cryptocurrency, or to invest from your own crypto account, according to police.

Experts say because of its anonymous nature, the crypto market is appealing for criminals. It's an unregulated market, transactions happen quickly, and they're difficult to trace.

"There's no regulation, which makes it the Wild West," explained Glen Dobranski, vice-president of technology for Edmonton-based Solut, an IT and cybersecurity firm.

"People can put a lot of money into here, and if it goes up in smoke overnight, there's no backing on it. There's no insurance on it."

Authorities say the actual number of cryptocurrency scam victims is likely under-reported, partly because it can be embarrassing to admit you've been duped.