Calgary Residents Suffer Losses Exceeding $22 Million Due to Cryptocurrency Scams During Market Downturn

The Calgary Police Service has alerted residents to be cautious of con artists who guarantee substantial returns on cryptocurrency investments, highlighting that victims in Calgary have lost over $22 million primarily to investment frauds in 2023.

At the same time, authorities suspect that cryptocurrency scams remain underreported despite the significant financial losses.

Calgary Police Report Increased Crypto Scam Incidents in 2023

In Calgary, Alberta, Canada, residents have incurred losses exceeding $22.5 million due to crypto-related scams in 2023, marking a notable rise from approximately $14 million reported in 2022, as indicated by a report from the Calgary Police Service (CPS).

The CPS noted that there were 321 documented instances of cryptocurrency scams in 2022, which increased to 340 cases thus far in 2023. However, the police assert that these statistics do not fully capture the total losses experienced by victims, emphasizing that crypto scams are underreported.

In light of the ongoing increase in fraud cases, the CPS has urged Canadian investors to remain vigilant, advising them to be cautious of the various tactics employed by scammers to misappropriate their funds.

The police indicated that investment scams were the most prevalent type of fraud encountered by Canadian investors. As detailed by the CPS, promises of exaggerated returns on crypto investments should be regarded as a warning sign, asserting that only fraudsters would guarantee such high profits.

Additionally, authorities pointed out that government agencies will not request full payment over the phone, particularly in cryptocurrency, nor will they issue threats, and they encouraged residents to report any suspicious behavior.

The statement from Staff Sergeant Graeme Smiley of the Calgary Police Service Cyber Forensics Unit states:

“It is important for citizens to know that while cryptocurrency can be used legitimately, fraudsters often lure victims with promises of a quick way to make money[…]For those who have fallen victim to a cryptocurrency fraud, we now have the Blockchain Investigative Team who are dedicated to investigating these types of scams.”

Canadian Investors Cautious About Crypto Exchanges

A prior survey conducted by the Dais, a think tank at Toronto Metropolitan University, revealed that approximately one-third of cryptocurrency holders in Canada, equating to about 35%, have experienced crypto fraud. Furthermore, nearly half of the Canadian respondents expressed low confidence in crypto exchanges.

Impersonating legitimate businesses is another significant strategy utilized by scammers to deceive investors. As previously reported by CryptoPotato, on-chain researcher ZachXBT found that scammers were creating fake accounts on X with gold verification checkmarks typically reserved for authentic business entities to defraud users.

ZachXBT noted that the $1,000 monthly subscription fee for the gold verification badge does not deter fraudsters, given the profits they can generate from their illicit operations.

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