• 35% of Canadians that own crypto have been scammed by crypto fraudsters
• 9% of Canadian residents have purchased cryptocurrencies or NFTs
• Less educated people are more likely to fall victim to fraud
Crypto Scams Prevalent Among Canadian Crypto Owners
According to a survey conducted by the Toronto Metropolitan University (TMU), 35% of Canadians that own digital assets have fallen victim to some form of crypto scam. The study further found that 9% of locals had invested in cryptocurrencies or non-fungible tokens (NFT). The share was higher among those who had graduated from universities.
Most Common Types of Cryptocurrency Scams
The survey was conducted with 2000 Canadian residents and it showed that fraudulent schemes related to cryptocurrencies were quite rampant. 14% said they had been contacted by someone posing as a crypto investment manager who then stole their fee for his “services”. 10% admitted to sharing their wallet information following a request, while 7% confessed to having purchased digital currencies from an unknown individual who vanished without a trace afterwards.
Consequences Of Falling Victim To Crypto Scams
When users fall prey to these cryptocurrency scams, significant financial losses can be incurred, sometimes even compromising large amounts of money like lines of credit, credit cards and life savings. In addition, there is also the risk of personal and financial information being compromised if they had shared any such details with the scammer.
Strategies To Avoid Crypto Fraud
To avoid falling victim to crypto scams, experts suggest several strategies such as only trusting reputable sources when it comes to making investments in digital assets and being aware about potential red flags like unsolicited offers or requests for additional information or fees before investing in anything related to cryptocurrency trading. Additionally, investors should always consult with legal professionals before engaging in any type of transaction involving virtual currencies.
It is clear that cryptocurrency scams are still a major issue in Canada and investors need to be extra vigilant when it comes to investing in this space. It is important for all stakeholders involved in the world of digital assets—individuals, companies and regulators alike—to work together towards reducing fraud risks and creating an environment where everyone can benefit from cryptocurrency investments safely and securely.