Protect yourself from cryptocurrency and investment scams
What’s an investment scam?
Investment scams convince you to put money into a questionable investment, or one that doesn't exist at all. In most cases you lose some or all of the money.
Recently, many investment scams involve cryptocurrency – relying on media buzz and misinformation to trick their targets. They get you to invest a sum of money by promising that they'll convert it to cryptocurrency, which you can someday convert back to regular money at a much higher value.
How cryptocurrency and investment scams work
A scammer offers a high-value investment from a “trusted”
These scams often find targets by using online ads in social media (Instagram, Facebook, TikTok, etc.), or impersonating legitimate advisors or business representatives. The scammer will promise a high-value return on your investment, often remaining vague about the details.
You provide your investment, which the scammer steals
The scammer asks for your investment by wire transfer, a Bitcoin Automated Banking Machine, or send a courier to pick it up in cash. Once you provide these funds, they are stolen and not recoverable.
Scammers may create fake online trading platforms, but you can’t fully retrieve your funds
Sometimes, scammers create fake online trading platforms showing the promised high returns, even making it possible to withdraw small amounts.
If you get in touch to withdraw your full investment, or start asking detailed questions about investment reports and returns, the scammer will cease all contact.
How to protect yourself from cryptocurrency and investment scams
- Don’t invest on impulse – research the opportunity, talk to a financial advisor, and take the time to make sure the investment is legitimate.
- Check the legitimacy of an investment advisor with the Canadian Securities Administrators (CSA) Check before you invest database.
- Beware of phrases like ‘guaranteed high return' and ‘once-in-a-lifetime opportunity’.
- Don't deposit investment funds using wire transfers, bitcoin, or cash payments.
- Don’t let the fear of missing out on an opportunity lead you into hasty decisions. Take your time.
How to report a cryptocurrency/investment scam
If you think that a cryptocurrency/investment scam has compromised your banking or personal information, report the incident to Meridian by calling 1-866-592-2226.
Helpful resources