The Saskatchewan Financial and Consumer Affairs Authority is warning residents and potential investors about scams involving cryptocurrency making the rounds in the province.
The FCAA says fraudsters create fake websites and use advertisements, recommendations and private messages to convince investors to give their money.
The ads usually promise a low risk with high returns, use pop-up ads that promote cryptocurrency giveaways or include fake customer reviews and private messages on social media sites from fake profiles that look legitimate.
Scammers can pretend to be senior executives and their profiles showcase fake investor references, the authority notes. They say scammers could also use complex jargon or high-pressure sales tactics to get people to give over cash.
As cryptocurrency can be a complicated item to comprehend, the FCAA is offering tips to avoid getting into a risky situation. A lot of these tips revolve around if something is too good to be true, it usually is and should be avoided.
People are also encouraged to examine the websites for false claims or grammatical mistakes, verify the company’s identity through the Canadian Securities Administrators National Registration, and check their disciplinary history with the Canadian Securities Administrators Cease Trade Orders, to find out if they have broken regulatory rules in the past.
The FCAA also encourages that people seek professional advice before investing in a product or service. If people believe they’ve found a fraudulent investment, they can report it to the FCAA Securities Division.