Nova Scotia warns public of crypto scam resulting in ‘unrecoverable’ losses

Nova Scotia Securities Commission Warns Residents crypto scamwhich is often cruelly called a “pig slaughter” scheme.

In a Monday morning release, the commission said the scams have caused “hundreds of thousands of dollars in personal losses” across Canada and the U.S. From 2021 onwards, these scams will cost more than $1 billion in North America. presumed lost.

According to the release, the scams start from unsolicited messages via text, email or social media or when the victim clicks. crypto trading advertising online.

Victims are then often asked to communicate via another messaging platform such as WhatsApp, Telegram or SMS, “making it difficult, if not impossible, to track down scammers,” the state said. says.

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Scammers try to establish a personal relationship with their victims by persuading them to open a cryptocurrency trading account and deposit a small amount of money into it. The state said scammers would often say, “You can get big returns by ‘investing’ in cryptocurrencies.”

After the initial deposit, scammers show victims screenshots of fake “account statements” showing huge profits in order to convince victims to invest more. The state said the strategy is called “fat up the pig.”

“These are fake documents because the scammers did not actually use the money to buy the cryptocurrency.”

Scammers then tell victims that if they want to withdraw money from their account, they must pay a fictitious tax or fee to access the funds. Scammers often disappear whether the victim pays these fees or not.

“In addition to gaining access to victims’ deposits, scammers instruct victims to download trading apps and file-sharing software, which allows scammers to gain access to victims’ mobile devices and computers. , can obtain personal and financial information that can be used to steal even more money,” warns the Security Council.

“Scammers sell this information to other scammers to further exploit victims.”

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The final part of the scam is the “recovery scam,” in which the victim is contacted by someone who says they can recover the money they lost for a fee.

“If you are victimized, you are unlikely to get your money back,” the state said. Officials advise people in Nova Scotia not to respond to unsolicited demands or advertisements demanding money to recoup losses.

According to the commission, when a person falls victim to a cryptocurrency scammer, there is not much they can do.

“While the Commission is interested in receiving reports of cryptocurrency investor losses due to these scams, experience has shown that there is usually little that can be done to recover these funds,” the release read. please

The only way investors can protect themselves is by recognizing and avoiding fraud.

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Nova Scotia Securities Commission Chairman Paul Radford said in a release that these scams are very prevalent and have caused many victims.

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“Everyone should be very careful about themselves and their friends and family when it comes to unsolicited messages or advertisements inviting them to invest in cryptocurrencies,” Radford said.

“Canadian citizens wishing to trade crypto assets should do so only with crypto trading platforms or dealers registered in Canada.”

The list of registered platforms is Available on NSSC website.

However, the commission warns that cryptocurrency trading is “extremely risky” from fraud, volatility and hacking. It generally recommends never using credit cards or lines of credit for investments, as “fraud losses are often significant and irreversible.”

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