Study Reveals 35% of Canadian Crypto Holders Fell Victim to Scams
A study conducted by contributors from the Toronto Metropolitan University (TMU) reveals that 35% of Canadian cryptocurrency owners have been targeted by crypto scammers. The research, based on a survey of 2,000 Canadian residents, highlights the prevalence of fraudulent schemes in the country's digital asset market.
The study found that individuals with lower education levels and lower incomes are more susceptible to falling for crypto scams. Among those surveyed, 14% reported being contacted by individuals posing as crypto investment managers who later stole fees, while 10% admitted sharing their wallet information in response to requests for additional details. Additionally, 7% disclosed purchasing digital currencies from unknown individuals who subsequently disappeared.
The authors of the research emphasized the significant financial losses and the risk of personal and financial information theft associated with these scams. They noted that the scale of fraud and scams related to cryptocurrencies in Canada is substantial.
The survey also indicated that Canadians have relatively low levels of trust in cryptocurrency exchanges. Only 9% of respondents expressed high trust, while nearly 50% reported having low trust in such platforms. In contrast, confidence in local banks was significantly higher, with 46% expressing high trust.
Approximately 10% of Canadians have invested in cryptocurrencies, primarily Bitcoin and Ether, with men aged between 25 and 35 constituting the majority of investors.
The study shared a distressing example of a Canadian couple who lost $300,000 in a crypto scam. Approached by an unknown individual online, they were deceived into investing their life savings on a dubious cryptocurrency platform. Despite witnessing initial growth in their investment, they later discovered that the entire amount had vanished when attempting to make a withdrawal. While the Toronto Police Service was able to recover a significant portion of their lost funds, the identity of the criminal remained unclear.
The research serves as a reminder of the risks associated with cryptocurrency investments and the importance of raising awareness and education to protect individuals from falling victim to scams in the evolving crypto landscape.