‘I got sucked into a vortex’: Victoria woman reveals brush with crypto scammers

by Arthur · March 25, 2023

A Victoria woman is warning other residents to be careful after a brush with a scammer trying to get her to invest in a bogus crypto scheme.

Grace (Black Press Media is not revealing her last name to protect her from future scams) is a Victoria resident in her late 20s who received a number of unsolicited offers on social media to discuss a possible crypto investment.

Grace said she had been looking to invest some money and asked friends on social media for any ideas.

“He was very charming and funny,” Grace said. “He seems very genuine at first, saying he didn’t trust the banks and their high fees.”

Grace identified with it and had heard a lot about crypto but didn’t understand it. The contact person made things sound easy at first and kept mentioning “guaranteed” returns on a small amount of money. But when she started asking more questions, the person’s explanations became more and more complicated with a lot of jargon.

“He kept telling me to trust him,” Grace said, adding that after asking for more information, “I was sucked into a vortex of information that didn’t make sense.”

Grace admitted that she felt some FOMO (fear of missing out) and was close to sending a first payment. That’s when she asked the person for some identification that said he was registered to make investments.

That’s when the person started to stop, causing Grace to change her mind – saying it definitely felt like a scam.

According to the BC Securities Commission (BCSC), the BC RCMP and the Canadian Anti-Fraud Center (CAFC), Grace is one of the lucky ones.

In 2022, British Columbians reported combined losses of nearly $24 million to crypto fraud, nearly triple the $8.5 million reported the previous year, according to CAFC data.

Canadians lost a “staggering” $530 million to fraud and cybercrime in 2022, a 40 percent increase from 2021, it said in a news release, adding that only 5 to 10 percent of victims report fraud.

“Fraudsters are using the popularity and complexity of cryptoassets to target vulnerable investors, especially on social media,” it said in a statement. “Recent BCSC research shows that young adult investors in BC are more likely to turn to social media for investment advice and information, and that they are taking a more speculative and risky approach to investing, with 18 per cent only holding crypto investments. “

Investors can protect themselves by recognizing the following characteristics of a crypto scam:

Promises of “guaranteed” high returns on an investment: All investments have risks. Investors should question any investment that has a “guaranteed” return.

Complicated jargon and language that is difficult to understand: Fraudsters often exploit the mystique of complex new technologies, such as blockchain or artificial intelligence, to project a veneer of expertise and authority.

Unregistered seller: Many investment scams involve individuals or firms that are not registered to buy or sell investments. Always check AreTheyRegistered.ca before investing.

Unsolicited offers: Be extremely careful if you receive unsolicited communications via email, phone, pop-up ads and videos on the Internet, or direct messages on social media.

Pressure to buy: Scammers may try to create a false sense of urgency to take advantage of an investment “before it’s too late.” Take the time to research an investment opportunity, ask questions and talk to a registered professional before making a decision.

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