Agency warns of cryptocurrency scam
New Brunswickers of all stripes have fallen victim to GoldberryCo fraud scheme, says Financial and Consumer Services Commission
New Brunswick’s financial services watchdog agency issued an alert Monday warning people of a cryptocurrency scam that’s already fleeced 27 people in the province of thousands.
“The scam prompted several securities regulatory authorities across the country to issue an investor alert on Thursday warning the public about GoldberryCo, which is operating through the websites goldberryco.com and goldbrco.com, and is not registered to sell investments in Canada,” the Financial and Consumer Services Commission of New Brunswick (FCNB) said in a news release Monday.
It noted 27 New Brunswickers have been identified as targets thus far, and those individuals lost a total of $23,168 in the scam.
The FCNB release said GoldberryCo is using social media, news articles and phoney websites of legitimate companies, including reputable Canadian media outlets, to urge Canadians to invest in its crypto scheme.
The commission also noted the scam is fooling people by claiming journalists and celebrities endorse its crypto-trading platform.
“Once a potential investor visits its platform and/or responds to a fictitious news article by clicking on a link and providing their contact details, they are encouraged to register and then are contacted by ‘an account manager’ to set up a free account,” the commission said.
“The victims are then pressured to deposit a minimum amount of money ($250) with the assurance they can withdraw their funds at any time. In some cases, investors are able to withdraw a portion of their funds as a way to build trust and entice them to invest more. But any requests to withdraw all funds fail, and the fraudsters cease communication.”
The release said an investigation by the Manitoba Securities Commission into the scam led to it collating a list of possible victims across the country, including 27 New Brunswickers.
The commission reported that it contacted many of those New Brunswickers to determine if they had fallen victim to the fraud and to dissuade them from investing any more money.
“The scam targeted people of all ages, professions and from around our province,” said FCNB spokesperson Marissa Sollows.
“Victims ranged from their 40s into their 80s, and they lost anywhere from $250 to more than $12,000. There was no typical victim.”
The commission said there’s been a rise in the number of so-called crypto companies in recent years, prompting it to issue public alerts to warn the public of the risk of fraud.
“Crypto scams are becoming more prevalent around the world, and the money lost to these scammers is staggering and, in most cases, permanent,” Sollows said in the release.
“One of the first steps New Brunswickers can do to protect themselves from investment scams is to check the registration of the individual and the company trying to sell them the investment before they part with their money.”
The commission also offers a link to the National Registration Search Tool on its website, fcnb.ca, and they can find alerts about various outfits identified as being involved in such fraud schemes.
“If the individual or company you are talking to is not registered with FCNB, it is a major red flag of fraud,” the commission’s release said.
”All individuals and companies selling investments in Canada must be registered.”
The commission said anyone in New Brunswick who believes they might have been a victim of the GoldberryCo scam or any other investment scam should contact it by calling 1-866-933-2222 or through its website.
The Fredericton Independent can be reached by email here.
Wow, scammers, constantly coming up with new ideas
Reputable Canadian news sites? Not many of those in existence.