Too Good to Be True? Seven Red Flafs of Crypto and Investment Scams

Have you come across an online investment opportunity that seemed too good to be true? If you have, you’re not alone. According to the Canadian Anti-Fraud Centre (CAFC), Canadians reported losing $310 million to investment scams in 2024.

Here are 7 ways to spot an investment scam:

1. Guaranteed High Returns with “No Risk”

If it seems too good to be true, it probably is. No legitimate investment can make promises like this, especially in the unpredictable world of cryptocurrency.

2. Celebrity Endorsements or Testimonials

Fraudsters often use fake images and deepfake videos to create unauthorized celebrity endorsements to build credibility.

3. Pressure to Act Immediately

Beware of “exclusive” opportunities or promotions that are only offered for a “limited time.” These manipulation tactics are designed to create a false sense of urgency, pressuring victims to act before thinking it through.

4. Unsolicited Contact from Strangers

Be skeptical of any unsolicited contact – whether through social media, email, phone, text messages or dating apps.

5. Requests for Payment in Cryptocurrency

Scammers often prefer to work with cryptocurrency because it is harder to trace or recover.

6. Unregistered Advisors

All legitimate investment firms and advisors must be registered. Always verify that you are working with a legitimate advisor by independently verifying their registration or by contacting the advisor at a phone number you have sourced yourself.

7. Difficulty Accessing or Withdrawing Funds

Fraudsters are great at communicating how “well” your investment is performing, but withdrawing your money may not be as simple as they make it seem. If a platform demands additional fees, makes excuses, or delays withdrawals, it is a major red flag.

If you suspect you might be caught in an investment scam:

• Cease all communication with the individual or platform, immediately.

• Do not send additional funds, even to recover your investment or “release” funds.

• Contact Kindred Credit Union. We will help guide you through the next steps and ensure your account is secure.

• Report financial loss to the Canadian Anti-Fraud Centre at 1.888.495.8501 and local law enforcement.

Always contact your branch or advisor at Kindred Credit Union if something doesn’t feel right or you’re unsure about an investment opportunity. Our team is here to help – call us at 1.888.672.6728 or visit kindredcu.com.