Crypto Frauds

There has been a significant rise in investor complaints about crypto-related scams.

Since July 2020, the OSC Contact Centre had a 200% increase in crypto-related complaints.

Buyer beware

It began with an online ad. John thought he was investing $16,000 in Bitcoin. The senior citizen provided information that was used to create an online bank profile. The fraudsters withdrew money from his bank account. Fortunately, his daughter intervened — but not before he lost a lot of money.

Be social media cautious

A simple click on a Facebook link and a phone number request. Janelle provided her number and was called by someone promising she could double her money in a crypto investment. She sent money but couldn’t reach the person she talked to when she tried to withdraw it. She lost $1.4 million. The money had been set aside for treatment for her terminal illness and for her to leave to her children.

Don’t fall for famous faces

Tannis saw an online crypto currency ad with a picture of someone famous. Intrigued, she clicked the link, provided her contact information and invested. When she tried to withdraw her funds, they told her to pay more money for “taxes and margin issues.” She paid but then was unable to reach anyone or access her account.

Disappearing act

Sally met Harry on an online dating app. Harry told Sally he owned properties and traded crypto assets for hundreds of clients. He offered to invest for her too and not charge any commission. On his instruction, she used a bitcoin ATM to send funds directly to his bitcoin wallet. Harry said her investment grew dramatically. Sally sent more money, until all her $300,000 was “invested.” Suddenly, Harry and her money were gone without a trace.

A costly
click

Warren is a dentist who was intrigued by online ads offering fantastic profits in crypto. He clicked on one ad and invested a small amount. He was impressed by how much his offshore online account was making. Being careful, he successfully withdrew $500. Warren then invested $25,000, confident his investment was safe. Later he tried to withdraw $3,000, and he was told to pay $1,500 to cover fees. After paying, the company stopped responding to his emails and Warren never recovered any of his money.

Concerns? The OSC is here to help.

Call us: 1-877-785-1555 Email us: inquiries@osc.gov.on.ca

Find registered crypto asset trading platforms in Ontario

You can also get more information at GetSmarterAboutMoney.ca

Protect yourself by learning more about the red flags of crypto fraud.

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05 GLOSSARY

Based on real events