Langford resident Patsy Hamilton considers herself to be a savvy person with a library of life experiences – she’s travelled solo abroad, she’s eaten termites in a jungle in Central America; never did she think she would fall prey to an online scam.
But when she came across a Toronto Star news story in February about Prime Minister Justin Trudeau endorsing a cryptocurrency exchange as a safe investment option, the normally astute Hamilton stumbled.
“I hesitated for a minute, but Trudeau was backing this company, I thought there was no way that this is a scam – surely somebody would have shut it down,” she said.
Playing on the turbulent relationship between Canada and the U.S. and the trade war’s threat to financial security, the crypto company promised high returns for an upfront $350 investment.
All Hamilton had to do was fill in an online form, provide her name, email address and phone number, and then await a phone call.
Little did she know at the time, the story was fake and Hamilton had just handed over her personal details to a fraudster.
When the ‘crypto company’ called, a person asked Hamilton for more personal information, including her date of birth.
“That was the first little red flag,” she said.
When Hamilton refused to give over the information, the caller turned on the charm offensive, telling her she sounded young and they needed to check she was over the age of 18. But despite the caller’s persistent questioning, the flattery failed to work and Hamilton ended the call, her bank account safe from their clutches.
A deep dive on the internet confirmed Hamilton’s niggling doubts about the call. “I found out that this was a scam that was mostly happening throughout Quebec and Ontario,” she said.
Hamilton is certainly not alone. According to the Canadian Securities Administrators, 46 per cent of Canadians report encountering investment opportunities on social media.
There have been other experiences similar to Hamilton across Canada, too. A fake CBC news article with an image of former Prime Minister Justin Trudeau prompted a warning this month about the prevalence of crypto investment scams from the Alberta Securities Commission.
Similar words of caution were issued by the Financial and Consumer Services Commission of New Brunswick about a scam claiming Premier Susan Holt was endorsing a cryptocurrency trading platform.
Individuals and groups using artificial intelligence (AI) generated content, including impersonating a public figure, to lure victims into investment scams, is becoming increasingly common, says the BC Securities Commission, which launched a fraud prevention campaign this year focusing on the AI problem.
“AI is a new tool for fraudsters to use to deceive investors, but the warning signs are much the same as other types of investment fraud,” said Pamela McDonald, the BCSC’s director of communications and education, in January for the launch of the ‘We’re Not All F**ked’ campaign. “You are the first line of defense. So it’s more important than ever that you pause, think critically, and do your research before investing.”
The BCSC recommends using the National Registration Search to ensure the company or person is legitimate and registered to buy and sell investments: https://info.securities-administrators.ca/nrsmobile/nrssearch.aspx.
For Hamilton, her near-miss experience has left her feeling a “sense of loss of safety and security.”
“Especially being older, living alone, you start to question, am I really not able to identify a scam?” she said.
But by sharing her story, Hamilton hopes she can raise awareness about online scams and how easy it can be to fall for them, especially as they become more sophisticated. She recommends trusting any gut feeling you have, taking notes and contacting your bank, the West Shore RCMP or Canadian Anti-Fraud Centre after a scam encounter.
“It could happen to anyone, and it's nothing to be embarrassed about, no matter what age you are,” she said. “If it doesn't feel right, it probably isn’t."
For more information about protecting yourself from fraud and identity theft, visit the Canadian Anti-Fraud Centre website: https://antifraudcentre-centreantifraude.ca.
