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The Better Business Bureau (BBB) is warning Canadians about the growing risks of cryptocurrency investment scams, which remain the most financially damaging fraud in the country. A new BBB report reveals that 87 percent of people targeted by these scams reported financial losses, with a median loss of $5,000.
Scammers use a tactic known as financial grooming, where they build trust with their victims over time before persuading them to invest in fraudulent platforms. These scams often begin with small investments, which appear to grow, leading victims to contribute larger sums—only to realize too late that their money is gone.
“Scammers are spending more time building relationships with their targets, and the result is significant losses,” said Julia Lewis, CEO of the BBB Serving the Atlantic Provinces. “If somebody you met online is offering to help you invest your money, it’s a huge red flag, and probably a scam.”
Beyond cryptocurrency fraud, employment scams ranked as the second riskiest, with a median loss of $2,500. Many victims were lured by promises of flexible, work-from-home jobs, only to be tricked into handing over personal information or money. Home improvement scams, where fraudsters pose as contractors and take payments for unfinished or non-existent work, ranked third, with a median loss of $1,500.
The BBB warns that scammers are becoming more sophisticated, using artificial intelligence to create realistic deepfake videos and AI-generated voices to make their scams more convincing. Online purchase scams have also risen in prominence, moving from fifth to fourth place in the rankings. These scams, often linked to social media ads, have a high exposure rate, affecting nearly 30 percent of those surveyed.
To help consumers identify and report scams, the BBB offers its Scam Tracker tool at bbb.org/ScamTracker. This online platform allows users to report fraudulent activity and search for ongoing scams in their area. The organization also provides a Scam Prevention Guide and a Scam Survival Kit with tailored resources for victims.
“Scams happen to everyone, and there’s no reason to feel embarrassed,” Lewis said. “Reporting fraud not only helps you but also protects others from falling victim.”
For more insights on the riskiest scams in 2024, visit the full BBB Scam Tracker Risk Report at bbbmarketplacetrust.org/canadariskreport.
