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Research conducted by contributors to Toronto Metropolitan University (TMU) estimated that 35% of Canadians holding digital assets had fallen victim to crypto fraud.
The study further determined that approximately 9% of local residents have purchased cryptocurrencies or NFTs, with a higher share among individuals who graduated from universities.
Less educated people are more likely to get cheated
The report, conducted through a representative survey of 2,000 Canadian residents, Has shown Fraudulent schemes involving cryptocurrencies are a serious problem in the country. According to the results, more than a third of those who have invested in digital assets have been implicated in some sort of scam.
14% (the largest share) said they had been contacted by a person who presented himself as a crypto investment manager and who later stole the fee for his “services”. 10% admitted to sharing their wallet information following a request for additional information, while 7% purchased digital currency from a mysterious person who then disappeared.
“When users fall victim to these cryptocurrency scams, significant financial losses can occur, sometimes compromising credit, credit cards and large amounts of life savings. Not only financial losses, but personal and financial information theft. The scale of these types of frauds and scams seems substantial in Canada,” the authors of the research warned.
People from lower income group and people with less education are more likely to get cheated. Individuals earning more than $50,000 per year and holding a university degree appear to be more aware of the risks in the industry and more cautious when approached by scammers.
The survey also estimated that a majority of Canadians are wary of cryptocurrency exchanges. About 50% have “low trust” in such companies, 25% are “neutral”, while only 9% have “high trust”.
In comparison, trust in local banks is very high. Just 12% have no confidence in domestic banking institutions, while 46% have “high confidence”.
The study suggested that nearly one in 10 Canadians have jumped on the crypto bandwagon by purchasing bitcoin, ether, or other digital assets. Most of the investors are males between 25 and 35 years of age.
Painful Lessons Learned by a Canadian Couple
While some scams are not so devastating and mainly cause desperation among victims, others can be significant. One example is an elderly man and his wife from Toronto who parted With $300,000 in such a plan.
The couple wanted to invest their life savings and an unknown person approached them online. After introducing himself as a “professional and knowledgeable” in the investment sector, he advised the family to distribute the funds on a dubious cryptocurrency platform.
At first, everything seemed legit, and the two saw their investments grow “significantly” over time. However, problems started when he asked to take back some of the properties. The wrongdoer said that they would have to pay substantial fees to complete such transactions. Later, the couple noticed that their entire investment had disappeared, proving their fears that they had become victims of a cryptocurrency fraud.
Fortunately for them, the Toronto Police Service recovered “a significant portion of the lost money”. The identity of the perpetrators who siphoned off the money, however, remained unclear, meaning they could be based in another country.
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Research conducted by contributors to Toronto Metropolitan University (TMU) estimated that 35% of Canadians holding digital assets had fallen victim to crypto fraud.
The study further determined that approximately 9% of local residents have purchased cryptocurrencies or NFTs, with a higher share among individuals who graduated from universities.
Less educated people are more likely to get cheated
The report, conducted through a representative survey of 2,000 Canadian residents, Has shown Fraudulent schemes involving cryptocurrencies are a serious problem in the country. According to the results, more than a third of those who have invested in digital assets have been implicated in some sort of scam.
14% (the largest share) said they had been contacted by a person who presented himself as a crypto investment manager and who later stole the fee for his “services”. 10% admitted to sharing their wallet information following a request for additional information, while 7% purchased digital currency from a mysterious person who then disappeared.
“When users fall victim to these cryptocurrency scams, significant financial losses can occur, sometimes compromising credit, credit cards and large amounts of life savings. Not only financial losses, but personal and financial information theft. The scale of these types of frauds and scams seems substantial in Canada,” the authors of the research warned.
People from lower income group and people with less education are more likely to get cheated. Individuals earning more than $50,000 per year and holding a university degree appear to be more aware of the risks in the industry and more cautious when approached by scammers.
The survey also estimated that a majority of Canadians are wary of cryptocurrency exchanges. About 50% have “low trust” in such companies, 25% are “neutral”, while only 9% have “high trust”.
In comparison, trust in local banks is very high. Just 12% have no confidence in domestic banking institutions, while 46% have “high confidence”.
The study suggested that nearly one in 10 Canadians have jumped on the crypto bandwagon by purchasing bitcoin, ether, or other digital assets. Most of the investors are males between 25 and 35 years of age.
Painful Lessons Learned by a Canadian Couple
While some scams are not so devastating and mainly cause desperation among victims, others can be significant. One example is an elderly man and his wife from Toronto who parted With $300,000 in such a plan.
The couple wanted to invest their life savings and an unknown person approached them online. After introducing himself as a “professional and knowledgeable” in the investment sector, he advised the family to distribute the funds on a dubious cryptocurrency platform.
At first, everything seemed legit, and the two saw their investments grow “significantly” over time. However, problems started when he asked to take back some of the properties. The wrongdoer said that they would have to pay substantial fees to complete such transactions. Later, the couple noticed that their entire investment had disappeared, proving their fears that they had become victims of a cryptocurrency fraud.
Fortunately for them, the Toronto Police Service recovered “a significant portion of the lost money”. The identity of the perpetrators who siphoned off the money, however, remained unclear, meaning they could be based in another country.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
