The Financial and Consumer Affairs Authority of Saskatchewan today issued a notice regarding another website that may be a scam.
Gold FX has been marked as an unregistered site that deals in cryptocurrency exchanges and may possibly be a scam.
The number of investor alerts the FCAA has issued has increased along with the cryptocurrency market, and the agency hopes residents will remain cautious.
The FCAA’s director of enforcement within the securities division, Harvey White, says the increase has mostly occurred online.
“We have seen a huge increase in the number of unregistered crypto trading platforms. Some of them only exist on the internet or are not real people, they are fictitious companies. They are basically for earn funds from investors Saskatchewan residents.
These scams are propagated in particular by appearing in advertisements and by attracting people who are new to cryptocurrencies.
“Sometimes it’s just people just looking for investment opportunities, cryptocurrency,” White said, “A lot of people are interested in exactly what cryptocurrency is. pop-ups on social media, and hope to get you clicking on them and reading about them, and hopefully convincing you to invest in them.”
While the targeted people may recoup money if they invest in the scam, White says it’s likely just to get more money from them.
“The biggest problem is that what happens is that they’re going to start and maybe they’ll convince someone to invest $500 and then it looks like that money is growing astronomically and they have all this money. They could fire them a bit and convince them to invest more and more.”
White says it’s hard to take action against fake businesses online, so the best solution is to prepare people for possible scams.
“The problem is most of them are fictional, so our biggest thing we can rely on is just to educate the public,” White said, “Do your research, talk to a professional if you’re offered these products, check and see if they are registered in Saskatchewan or anywhere in Canada.”
White says you can search if a business is registered on the FCAA websiteas well as other tips to avoid scams.