As the summer heats up, so does the activity of crypto scammers on Canadian dating apps and websites. The Canadian Anti-Fraud Center (CAFC) has reported a worrying increase in romance and investment scams, also known as “pig butchery”, targeting individuals on dating platforms, involving sophisticated schemes who mine cryptocurrencies.
Dark Side of Digital Love: Fighting Crypto Scams on Dating Platforms
According to the announcement, scammers begin these deceptions by making connections on popular dating sites, quickly moving conversations to private messaging services to isolate their victims.
As relationships deepen, these bad actors introduce the idea of money-making activities. digital currency investmentsleveraging trust built over time to encourage financial commitments.
Once the trap is sprung, victims are persuaded to invest in high-yielding digital currency schemes on platforms that are nothing more than sophisticated fronts. These platforms often allow victims to opt out initially, promoting a false sense of security and functionality.
However, when larger sums are invested, access to funds is suddenly restricted or even blocked entirely, with fraudsters disappearing or platforms closing their doors, leaving investors with substantial losses.
Personal information passed during the investment process further compounds the risk, leading to potential identity theft or additional fraudulent activity under the victim’s name.
Recognizing the seriousness of these crimes, the Canadian Investment Regulatory Organization (OCRI) has joined forces with the CAFC to combat these fraudulent activities.
They issued joint warnings to the public, emphasizing the importance of vigilance when approaching investment opportunities through new or unverified contacts, particularly those involving digital currency.
Both organizations encourage anyone who encounters or is suspected of such schemes to report them immediately to the authorities, thereby helping to prevent further victimization and seek out those responsible for these exploitative practices.
Institutional adoption increases due to fraud concerns
This increase in fraudulent activities takes place in a context of growing adoption of cryptocurrency in Canadaparticularly among institutional investors.
A recent survey conducted by KPMG in Canada and the Canadian Association of Alternative Assets and Strategies (CAASA) highlighted a notable increase in institutional engagement with cryptocurrencies.
From 2021 to 2023, the percentage of institutional investors with crypto assets increased from 31% to 39%. Notably, a third of these institutions have allocated at least 10% of their portfolios to cryptocurrencies, reflecting a strong belief in the long-term potential of this asset class.
Interest in digital currency has prompted Canadian financial institutions to expand their crypto-related services. According to the survey, half of financial organizations now offer at least one crypto service, up from 41% two years ago.
These services range from trading platforms and custody solutions to quantitative trading strategies designed for the digital currency market.
Featured image from Unsplash, chart from TradingView
