Canadian authorities are cautioning the public about the rising tide of romance and cryptocurrency scams infiltrating dating apps and websites this summer. The Canadian Anti-Fraud Centre (CAFC) and the Canadian Investment Regulatory Organization (CIRO) have jointly issued warnings to help citizens identify and avoid these sophisticated schemes.

The CAFC has observed a marked increase in two particular types of scams targeting Canadians: romance scams, also known as "pig butchering," and fraudulent investment schemes. These scams often begin innocuously on dating platforms, where scammers initiate conversations with potential victims, gradually moving the interaction to private messaging services.

"Fraudsters may attempt to befriend victims, foster an online romance, or pose as legitimate investment advisers," the authorities explained. Over time, these scammers suggest investment opportunities, frequently involving cryptocurrency assets, with promises of substantial returns.

Victims are enticed with schemes that offer unrealistic gains and are directed to fake investment platforms. Initially, they might be allowed to withdraw small amounts to build trust, but eventually, their funds are locked, and their identities are compromised.

Authorities stress that discussing cryptocurrency investments with online matches should be seen as a red flag. Canadians are urged to report any suspicious activity to the CIRO, CAFC, and local police.

In 2023, Canadians lost an astonishing $309.4 million to various investment frauds, with $172 million stemming from scams on social media platforms alone. This highlights the extensive reach and impact of these deceptive practices.

Looking ahead, Canada is preparing to implement the international Crypto-Asset Reporting Framework (CARF) for taxation purposes by 2026. As part of this initiative, cryptocurrency exchanges, brokers, dealers, and automated teller machine operators will face new reporting requirements. These will include the collection and disclosure of detailed customer information, such as names, addresses, dates of birth, jurisdictions of residence, and taxpayer identification numbers.

The supplemental report also outlines that the new regulations will apply to various crypto assets, including stablecoins, derivatives issued as crypto-assets, and certain non-fungible tokens (NFTs). These measures aim to enhance transparency and accountability within the rapidly evolving crypto sector.

With these developments, Canadian authorities are reinforcing their commitment to protecting citizens from fraudulent activities while ensuring the integrity of financial markets.