Cryptocurrency fraud and phony weight loss programs were among three new additions to the Better Business Bureau of B.C.'s list of top scams for 2017.
On Wednesday, bureau president Danielle Primrose said fake offers involving digital currencies such as Bitcoin are a "rapidly growing concern" and cost Canadians an estimated $1.7 million last year.
Startups will often collect Initial Coin Offerings, or ICOs, to raise money with the promise of a payout once the company becomes profitable.
While this can be a legitimate way of raising funds, Doug Muir of the BC Securities Commission said it also makes investors vulnerable to fraud.
"We're seeing some of the same tactics that are used in other securities fraud," he said. "These people may just take your money and they're gone."
Since digital currencies remain largely unregulated and operate outside of a central bank, there's often little investors or authorities can do to get the money back.
Muir said the commission has received 50 complaints involving cryptocurrencies since November 2017.
The BCSC and BBB are warning that even legitimate digital investments can be dangerous due to price volatility that can lead to fluctuations of as much as 30 per cent a day.
"Don't fall for the hype. Educate yourself. Ask questions. Don't be satisfied until you get answers," said Muir, urging all potential investors to seek professional advice.
Those looking to invest in their health were also urged to beware Wednesday.
The BBB said miracle weight loss products and programs that aren't backed up by science are also a growing threat to Canadians.
"People trying to lose weight are so vulnerable to scammers who tell them that it's simple," said Victor Hammill of the Competition Bureau. "They're after your money—not your wellness."
Thane Canada Inc. recently received a $350,000 penalty from the Competition Bureau for making false and misleading claims about weight loss devices. The company was also banned from marketing weight loss devices for 10 years.
Hammill urged Canadians to "be extremely suspicious of free trials" and talk to their doctors before starting any kind of weight loss regimen.
Online purchase scams jumped to number one on the BBB's list and cost Canadians more than $13 million last year.
The BBB said fake online retailers often sell counterfeit goods that can't be returned for a refund or exchange. Online shoppers can also fall victim to "free trial traps" that lead to automatic monthly charges that can be hard to stop.
Primrose said such scams can even appear on big, reputable websites such as Amazon.
In a related scam, Primrose also said online shoppers should always verify the legitimacy of any emailed invoices they receive.
Wire fraud or spear phishing was the single costliest type of scam in 2017 at an estimated $20 million.
These involve fraudsters who impersonate CEOs in emails instructing unsuspecting employees to wire transfer or email company funds.
Primrose said these can be avoided by training employees to carefully double-check that email addresses are correct, especially when it comes to moving money around.
Online dating scams followed closely behind, reportedly costing Canadians $19 million.
"Without a doubt, there are many more victims because in this case, they've very ashamed to come forward," Primrose said, warning that as many as 25 per cent of online dating profiles are fake.
The list also included a number of scams Primrose said "literally never go away," such as fake contractors who collect up-front fees for unsolicited work and disappear.
Income tax scams where fraudsters pose as officials with the Canada Revenue Agency and ask to collect unpaid taxes made this list again this year, but with a new twist: Some scammers are now asking for payment in Bitcoin.
"We want Canadians to know that the Canada Revenue Agency doesn't do business this way," Primrose warned, adding that income tax fraud cost Canadians $5 million 2017.
Another $1.5 million was lost to advance fee loans.
"If you require a loan and they ask for a fee up front, you just need to walk away," said Primrose.
According to the bureau, employments scams promising to hire people in exchange for a fee are getting harder to dodge as they make their way onto reputable job websites such as Indeed.
The BBB said Canadians lost a total of $95 million to scams last year, up 15 per cent from 2015.
According to the Canadian Anti-Fraud Centre, however, only about 5 per cent of scam victims ever come forward. That means the losses could in fact be many times more.
Anyone who falls prey to a scammer is encouraged to report it to authorities, and to the BBB using its online Scam Tracker.
"You may feel like victim but you're not alone. One reported scam might help somebody else, but it might also help you get your money back," Primrose said.
The full list of 2017's top scams includes:
1. Online purchase scams ($13 million reported)
2. Wire fraud/spear phishing ($20 million reported)
3. Online dating scams ($19 million reported)
4. Employment scams (unknown)
5. Cryptocurrency scams ($1.7 million reported)
6. Income tax scams ($5 million reported)
7. Weight loss scams (unknown)
8. Advance fee loans ($1.5 million reported)
9. Contractor scams ($3 million reported)
10. Fake invoices (unknown)
