Calgary, a bustling city in Canada, has been making headlines for all the wrong reasons. This year, the city saw a disturbing rise in the number of crypto scam cases, with residents losing a staggering sum.
In 2023 alone, 340 cases have been reported where Calgarians were duped, leading to losses amounting to over $22.5 million in cryptocurrency. This unsettling data comes directly from the Calgary Police Service.
But here’s the twist. This recent surge of 60% from the previous year, where losses stood at around $14 million from 321 cases, might still be just the tip of the iceberg. The police maintain that the actual number could be far greater. Why? Because many people still don’t come forward to report such scams, often out of embarrassment or a lack of awareness about the reporting mechanisms.
Staff Sergeant Graeme Smiley from the Calgary Police Service Cyber Forensics Unit offers a word of caution to the public: “While there are legitimate avenues to use and invest in cryptocurrency, opportunistic fraudsters prey on those who are seeking a swift profit.”
But this alarming trend isn’t isolated to just Calgary or Canada. It’s a global issue.
In 2022, scams led Canadian citizens to incur losses of over half a billion dollars, a jump of 40% from 2021’s figure of $380 million. When we zoom out and look at the global scenario, the figures become even more mind-boggling. The third quarter of 2023 saw the crypto industry lose nearly $890 million due to a mix of scams, hacks, and deceptive schemes, outstripping losses recorded for the first half of the year.
Diving deeper into these numbers, more than $540 million was lost in just 43 cyberattacks. Additionally, 81 deceptive schemes known as ‘rug pulls’ accounted for losses of $282.9 million. Phishing scams, another deceptive method used to dupe unsuspecting individuals, led to losses of $66.1 million.
One might wonder, with the advancements in technology and digital safeguards, how do these scams still occur? A big part of the problem lies in the very solutions designed to protect us. Crypto investors are usually advised to use secure digital wallets. Many of these hardware wallet providers suggest maintaining backup seed phrases on paper. While this might seem safe, it opens up a risk for potential theft, especially in situations where one’s home security is compromised.
In light of these developments, it’s paramount that individuals remain vigilant and educated about the potential risks. The lure of quick money can be tempting, but as the numbers suggest, the dangers are very real. The Calgary Police Service urges victims, or anyone who suspects fraudulent activity, to come forward and report it using their non-emergency contact channels.
The world of crypto is vast, complex, and ever-evolving. But with the right precautions and a wary eye, one can navigate it safely. Always remember, if an investment sounds too good to be true, it probably is.
