“CAFC warns of rising romance and investment scams, known as ‘pig butchering,’ targeting dating app users with sophisticated cryptocurrency schemes”
Addressing the Negative Aspects of Digital Romance: Countering Cryptocurrency Frauds on Dating Platforms
Per the announcement, the con artists initiate these fraudulent activities by establishing connections on well-known dating platforms, subsequently transitioning discussions to private messaging systems to segregate their targets.
As relationships ostensibly progress, these evil individuals propose profitable digital currency investments, capitalizing on the trust cultivated gradually to coerce financial obligations.
After the snare has been established, individuals are duped into investing in high-yield digital currency schemes through platforms that are merely elaborate facades. These platforms frequently permit initial victim withdrawals, which creates an illusion of functionality and security.
However, when larger sums are invested, access to the funds is abruptly restricted or completely blocked; the platforms close down, or the scammers vanish, leaving the investors with significant losses.
The disclosure of personal information throughout the investment procedure exacerbates the danger, potentially resulting in identity theft or the initiation of further fraudulent endeavors in the victim’s name.
In light of the gravity of these illicit undertakings, the Canadian Investment Regulatory Organization (CIRO) and the CAFC have allied to combat them.
Joint warnings have been issued to the public, underscoring the critical nature of caution when considering investment opportunities mediated by unfamiliar or unverified individuals, specifically those associated with digital currencies.
Both organizations advocate for the prompt reporting of any individuals who come across or have suspicions of such schemes to the appropriate authorities. This will aid in averting additional victimization and the apprehension of those accountable for these exploitative practices.
Increased Institutional Adoption Amid Concerns About Fraud
Concurrent with this upswing in fraudulent behavior is the increasing acceptance of cryptocurrencies in Canada, especially among institutional investors.
In a recent survey conducted in Canada in collaboration with the Canadian Association of Alternative Assets and Strategies (CAASA), KPMG and CAASA identified a significant surge in institutional involvement with cryptocurrencies.
The proportion of institutional investors holding crypto assets increased from 31% in 2021 to 39% in 2023. Significantly, a minimum of 10% of the portfolios of one-third of these institutions have been allocated to cryptocurrencies, indicating a strong conviction in the long-term viability of this asset class.
The surge in interest surrounding digital currency has instigated the expansion of crypto-related services by Canadian financial institutions. As of the present survey, 50% of financial institutions provide at least one cryptocurrency service, an increase from 41% in the same period two years ago.
The offerings include custody solutions, trading platforms, and quantitative trading strategies tailored to the digital currency market.
