NEWS RELEASE
ONTARIO PROVINCIAL POLICE
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MIDLAND — 2021 was an historic year for frauds reported to the CAFC with reported losses totalling $380 million, a dramatic increase from $164 million in losses in 2020. The current 2022 reported losses are $362 million, with three months left in the year. Ontario residents represented $142 million of the over $380 million in losses reported to the CAFC in 2021. It is estimated that only 5% of victims report their frauds to law enforcement or the CAFC.
Currently in Southern Georgian Bay OPP Detachment, numerous scams of this type are being investigated and investigators advise that the best defence against becoming a victim is to be educated to these scams and to research these alleged opportunities before committing any funds.
Investment scams were the highest reported scams based on dollar loss in 2021. Investment frauds represented $163 million in reported losses in 2021, over $33 million in 2020. Reported cryptocurrency payments to fraudsters have jumped to $87 million in 2022, up from $77 million in 2021 and over $23 million in 2020.
The majority of the investment scam reported involve Canadians investing in cryptocurrency after seeing a deceptive advertisement online. Scammers encourage victims to download remote entry software, in addition to a trading platform and transferring cryptocurrency into their trading account. In most cases, victims are not able to withdraw their funds. It is very likely that many of the trading platforms are fraudulent or controlled by fraudsters. In addition to crypto trading scams, the CAFC also receives reports on suspected fraudulent Initial Coin Offerings. These victims often receive a follow up scam, where scammers offer services to recover their cryptocurrency for a percentage of the lost funds.
How to protect yourself
- Be careful when sending cryptocurrency. Once the transaction is completed, it is unlikely to be reversed.
- As proceeds of crime and anti-money laundering regimes around the world create regulatory frameworks that treat businesses dealing in cryptocurrencies as money service businesses, Canadians need do their research to ensure they are using reputable and compliant services.
- If you receive a suspicious message from a trusted friend, reach out to them through a different means of communication to confirm that it is them.
- Verify if the investment companies are registered with your Provincial Securities Agency or the National Registration Search Tool (www.aretheyregistered.ca).
- Prior to investing, ask for information on the investment. Research the team behind the offering and analyze the feasibility of the project.
- Be weary of individuals met on dating or social media who attempt to educate and convince you to invest into crypto currency.
- Beware of fraudsters asking you to open and fund new crypto accounts. They will direct you to send it to wallets they control. Don't!
If you do fall victim to a fraud or know someone who has, contact your local police service to report the crime and also report it to the Canadian Anti-Fraud Centre (CAFC).
The CAFC collects information on fraud and identity theft Canada wide. Contact the CAFC by phone at 1-888-495-8501 or online by way of the Fraud Reporting System (FRS), even if a financial loss did not occur.
For more fraud facts and figures and a downloadable booklet (PDF), visit The Competition Bureau of Canada website at
https://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/home or by visiting http://www.opp.ca and http://www.antifraudcentre-centreantifraude.ca/index-eng.htm
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