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Watch what you download: BCSC warns investors about 'smart wallet' apps

Last Updated Oct 2, 2019 at 11:52 am PST

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Summary

BC Securities Commission is alerting investors about 'smart wallet' apps

The BCSC says the claims of big payouts may be too good to be true

'Big promises and pyramid-like payouts are both classic warning signs of risky investments,' BCSC says

VANCOUVER (NEWS 1130) – Here’s another warning to watch what you download onto your phone.

The BC Securities Commission is alerting investors about “smart wallet” apps that claim to store a person’s crypto-assets and earn money through high-frequency, automated trading.

Apps like WoToken Wallet and Cloud Wallet say users will earn up to a 15-to-20 per cent return on their investment, get bonus payments by persuading other people to use the wallet, and receive further payments if those people convince others.

The BCSC says the claims of big payouts may be too good to be true.

“The apps also resemble a pyramid scheme, in which investors are promised earnings if they get others to join in,” BCSC Director of Enforcement Doug Muir said. “Big promises and pyramid-like payouts are both classic warning signs of risky investments. We urge everyone to approach these apps with extreme caution.”

Smart wallet applications are available on Apple’s App Store as well as on Google Play.

The BCSC notes WoToken Limited, the company behind WoToken Wallet, is based offshore, in the British Virgin Islands, and also makes mention on Facebook that it’s connected to WO Data Group Ltd., recently registered in B.C.

Meantime, the company behind Cloud Wallet is registered in Australia.