Canadian Authority Warns  Against Crypto Scammers Targeting  Dating Sites Users

The Canadian regulators issued an advisory report warning the public to be vigilant when using dating sites. According to the Canadian Anti-Fraud Centre (CAFC), criminals have shifted their focus to dating sites to defraud the public. 

The CAFC noted that criminals have devised different approaches to convince Canadians to invest in their dubious schemes. 

Criminals Preying on Canadian Dating Site Users

The regulators complained that multiple cases of crypto scams have been reported in the past few months. Out of reported cases, the CAFC noted that the criminals used pig butchering and romance scams to lure the customers into investing in fake crypto investments. 

The victims of online scams complained that scammers assured them of a high return on investment, but this turned out to be the opposite.  The CAFC noted that criminals purported to work with a crypto firm offering multiple investment opportunities and consultancy services.  

The CAFC observed that the investment opportunities the criminals offer involve get-rich schemes promising high returns on investments. To benefit from these investment opportunities, the criminal convinced the Canadian for private messaging chat to discuss more concerning the project.

The CAFC noted that the criminals befriended the victims to build a rapport with them. Also the scammers appeared to experts in financial and investment matter.

Canada Warns Public Against Romance and Crypto Scam

The scammers claimed to have made huge profits from the crypto investment to persuade the victims that they would reap big from the investment. The regulators noted that the victims were forced to sign up for crypto investments and deposit funds on the fake platform. 

At first, the victims were allowed to withdraw to demonstrate the platform’s legitimacy. In some cases, after the deposits, the criminal compromises the user’s identity to take charge of the account.

The regulator noted that after the victim claimed their money back, the criminals request additional funds to cater for the transaction fees. The regulators stated that criminals mainly assure the victims that their investments will yield unrealistic returns.

The CAFC urged the public to report fraudulent schemes to the Canadian Investment Regulatory Organization (CIRO) or the Canadian police department. 

Regulators Enact New Measures to Address Cybercrime

The users of online dating sites are urged to avoid any communication that seeks to establish a strong relationship on social media platforms. Also, investors are urged to conduct thorough studies on an investment to avoid falling in scammers trap.

Also, the Canadians are encouraged to read widely and keep up to date with what is happening. The CAFC and CIRO plan to post regular publications warning the public of ongoing criminal activities. 

The regulator noted that almost $309.4 million was lost to fraudulent schemes last year. The social media and online scams constituted $172 million in 2023. 

The Canadian authority plans to enact the Crypto Assets Reporting Framework (CARF) to address crypto scams in 2026. The CARF will require the crypto assets service providers (CASPs) to report the income generated from buying and selling digital assets. 

The new tax regime will have direct effect to exchanges, crypto, and brokers facilitating crypto trading. The CARF will mandate the Canadian CASPs to disclose customer information to the authorities. 

The customer’s information will include name, date of birth, taxpayer identification numbers, and location. The new rules will apply to any trading involving stablecoins, nonfungible tokens, and other crypto assets.