Canadian dating apps have seen a surge in romance and cryptocurrency scams, prompting authorities to issue warnings. The Canadian Anti-Fraud Centre (CAFC) and the Canadian Investment Regulatory Organization (CIRO) have identified two main types of scams: romance scams, also known as “pig butchering,” and investment scams. These scams often begin with scammers befriending victims on dating platforms and persuading them to move conversations to private messaging services. Over time, scammers pose as legitimate investment advisers and suggest investing in crypto assets, promising unrealistic returns.
Victims are then directed to sign up on fraudulent investment platforms where their funds are eventually locked once their identity is compromised. Initially, these schemes may allow victims to withdraw small amounts to appear legitimate, but eventually, the funds become inaccessible. In 2023 alone, Canadians lost $309.4 million to investment frauds, with $172 million stemming from social media-related scams. Authorities advise against discussing cryptocurrency investments with online matches and urge victims to report incidents to the CIRO, CAFC, and local police.
Additionally, Canada plans to implement the international Crypto-Asset Reporting Framework (CARF) by 2026. This framework will impose new reporting requirements on crypto asset service providers, necessitating them to gather and report detailed customer information. This move aims to enhance transparency and combat fraud in the rapidly evolving crypto industry.
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