According to the Nova Scotia Securities Commission, some victims have lost hundreds of thousands of dollars
Nova Scotians are being urgently warned of a widespread crypto-related scam that has left numerous people suffering substantial losses.
According to the Nova Scotia Securities Commission, some victims — including those in Nova Scotia, the rest of Canada and the U.S. — have lost hundreds of thousands of dollars.
The commissions calls it a “pig butchering” scheme.
It usually starts off when the victim gets an unsolicited message, generally through text, email, social media, or they click on a crypto trading ad on a social media site.
The victim is asked to communicate through WhatsApp, Telegram or SMS text, which the commission says makes tracing the scammer difficult if not impossible.
The scammer develops a relationship with the victim, convincing them to deposit a small amount of money into a crypto trading account.
The victim is then provided with fake statements showing large gains to persuade them to investment more money, which the commission refers to as “fattening up the pig.”
None of the money is actually used to buy crypto, and when the victim tries to withdraw their money, the scammer demands fictional taxes or fees before eventually disappearing.
“The scammers not only gain access to the victim’s deposited funds through the crypto account, but instruct the victim to download trading apps or file-sharing software that give the scammer…
