Reminding Investors About Crypto Scams During Fraud Prevention Month
To mark Fraud Prevention Month in March, the Nova Scotia Securities Commission is reminding investors to watch out for the red flags of crypto-related scams.
It recently issued an alert warning about a crypto-related “pig butchering” scam that has become widespread throughout North America and has led to substantial losses for some Nova Scotians.
As this and other scams continue, people should be wary of the following:
- being contacted by a stranger about an investment opportunity
- being directed to download an app or trading software
- being encouraged to use credit cards or lines of credit to invest money
- offers of assistance from a “professional crypto trader”
- being told to move crypto off of an established platform to a “wallet” that has been set up by someone else.
Throughout Fraud Prevention Month, relevant content and tips will be shared on the commission’s website and social media channels.
The commission’s Before You Invest blog will feature new content every Wednesday, including the top investor threats of 2023, while its YouTube channel will have a new video going live every Monday. Some of the topics include anatomy of a scam, Ponzi schemes and recovery room scams.
It will also deliver two investor education presentations at the Halifax Central Library. More information is available at: https://nssc.novascotia.ca/before-you-invest/march-fraud-prevention-month-6
Quotes:
“Being aware of these red flags can help investors identify and protect themselves from investment fraud. If you receive unsolicited messages from people you don’t know, be cautious and mindful that this person could be attempting to defraud or scam you.”
– Paul Radford, Chair, Nova Scotia Securities Commission
Quick Facts:
- it is illegal to solicit investments in Nova Scotia without registering with the commission and complying with Nova Scotia securities laws, unless an exemption applies
- crypto trading platforms must register with securities regulators to legally operate in Canada
Additional Resources:
Nova Scotia Securities Commission: https://nssc.novascotia.ca/
Nova Scotia Securities Commission social media channels: https://nssc.novascotia.ca/FollowNSSC
Nova Scotia Securities Commission Before You Invest blog: https://nssc.novascotia.ca/before-you-invest
News release – Warning for Nova Scotians About Crypto Scams: https://novascotia.ca/news/release/?id=20230109001
List of crypto trading platforms registered in Nova Scotia: https://nssc.novascotia.ca/registered-crypto-asset-trading-platforms