Calgary, Alberta, Canada, is currently grappling with a surge in cryptocurrency-related scams, prompting local law enforcement to issue a targeted warning to its residents. Victims in Calgary have collectively lost more than $22.5 million to various scams within the cryptocurrency space so far this year. Reports from Canadian officials indicate that the number of reported crypto scams in 2023 has significantly risen. In contrast to 2022, where residents reported losses totaling $14 million across 321 scams in 12 months, the figures for 2023 have already reached 340 reported scams.
Canadian authorities wary of underreported scams in Calgary
Canadian authorities have also warned that these numbers may significantly underrepresent the actual extent of the issue. Calgary, a cosmopolitan city and historically the heart of Canada’s oil industry, was recently ranked as the third most livable city in the world by the Economist Intelligence Unit (EIU). However, its residents are now contending with the escalating threat of cryptocurrency scams. The most common forms of scams in this region are investment scams. These scams typically involve perpetrators promising victims higher returns on their investments in cryptocurrency in exchange for an upfront payment.
It is a red flag when scammers demand full payment before delivering on their promises. One notorious example includes phishing videos impersonating Bitcoin billionaire Michael Saylor, where victims are convinced to send their Bitcoin to the scammer’s wallet in the hope of doubling their holdings. In January 2022, one victim fell for this scheme, sending $1.1 million in Bitcoin to the scam address. In addition to investment scams, authorities are cautioning residents about individuals online who promise significant returns in the cryptocurrency markets. They also advise people to be wary of those they encounter online.
Rise of crypto scams and regulations to combat them
Scammers on social media dating apps also mention crypto investments, and these messages are often indicators of fraudulent activity. The rise in cryptocurrency-related scams is not unique to Calgary; it is a global issue. According to Chainalysis, scams constitute a significant portion of the volume of cryptocurrency-related crimes, which also include hacks, activities on the darknet, and ransomware attacks. However, Chainalysis’s 2023 crypto mid-year update suggests that global cryptocurrency crime is on the decline compared to the previous year. Unfortunately, this positive trend does not seem to apply to Calgary.
A survey conducted in June 2023 by Toronto Metropolitan University sheds light on the scope of the problem. The survey found that one-third of digital asset owners in Canada have fallen victim to cryptocurrency scams, underscoring the need for increased vigilance and awareness among cryptocurrency users. Aside from scams, the Royal Canadian Mounted Police (RCMP) issued a warning in July regarding a different type of threat. Some Canadians reported that their cryptocurrencies were stolen directly from their homes by individuals posing as delivery persons or authorities, further highlighting the creativity and audacity of cryptocurrency scammers.
Residents of Calgary, Alberta, are grappling with a surge in cryptocurrency-related scams, resulting in substantial financial losses. These scams come in various forms, with investment scams being the most common. Local authorities have issued warnings to help residents protect themselves from falling victim to these fraudulent schemes. As the cryptocurrency market continues to evolve, users must remain cautious, exercise due diligence, and be aware of the potential risks associated with this emerging financial technology.
