ASC Issues Public Warning About Crypto Scam Targeting Investors in Canada

If anyone is wondering why the fear of fraud is high in Canada today, here is one example.

The Alberta Securities Commission recently issued a public statement warning citizens about the prevalence of scams orienting around alleged crypto investment opportunities.

As part of Fraud Prevention Month, the ASC specifically warned about a viral crypto scam called CanCap.

The scam falsely references various endorsements, including a connection to the Government of Alberta and an ad featuring a fake CBC news article with an image of Justin Trudeau.

The ASC advises that the scam should not be confused with CanCap Group, a privately-owned Canadian financial services company.

“Fraudsters continue to use sophisticated techniques to deceive investors, often impersonating legitimate companies, leveraging current events, and fabricating endorsements from well-known individuals to create a false sense of credibility and legitimacy,” the statement from ASC reads.

Warning signs of fraudulent crypto investment schemes include scammers exploiting the names of real institutions or firms to mislead investors into believing an opportunity is credible; fabricating media stories featuring well-known journalists or media personalities to lend an air of legitimacy; and making unrealistic promises of high or quick returns.

The ASC recommends checking the National Registration Search to ensure an individual or firm selling an investment is registered to deal or advise in securities.

One can also check the CSA Investor Alerts, Disciplined List, and Cease Trade Orders to ensure the investment opportunity isn’t considered a risk, or is otherwise the subject of disciplinary or enforcement actions.

Established in 1955, the Alberta Securities Commission is the regulatory agency responsible for administering the province’s securities laws. The organization is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors.

The ASC functions as a member of the Canadian Securities Administrators, which works to harmonize and improve the regulation of Canada’s capital markets.