Canadian Authorities Launch New Project to Combat Crypto Fraud

The Alberta Securities Commission (ASC) has joined forces with the Edmonton Police Foundation (EPF) and Edmonton Police Service (EPS) to launch a new project to combat crypto fraud in Canada.

According to an announcement by the Edmonton Police Service, the ScamShield: Investor Protection Challenge is part of the EPF’s Community Solutions Accelerator to address the increasingly rampant cryptocurrency investment schemes in Canada.

New $96,000 Challenge Targeting Crypto Fraud

The project will offer a prize pool of up to 130,000 CAD (~$96,000) for visionary proposals that enhance investor protection and address the growing problem of crypto-related scams in Alberta.

More than 50% of investment fraud reported in Canada since 2019 is connected to fraudulent #crypto trading websites. That’s why we created https://t.co/qoJ0Ia6buv to inform NS residents. Learn more about NovaCrypto by reading our latest blog post. https://t.co/XEEbqe2XiL pic.twitter.com/NRm52BiB8b

— SecuritiesCommission (@NSSCommission) September 5, 2024

The challenge invites participants from various fields, including academia, technology, and innovation, to propose effective methods for tackling crypto investment fraud. Submissions are open until November 4.

Data from the ASC indicates that over 60% of the $309 million in reported investment frauds in Canada last year involved crypto assets.

Losses exceeded $7 million in Edmonton alone, highlighting the need for new solutions to protect investors and strengthen local capital markets.

“Anyone can be the victim of a scam and the impact can be devastating,” said ASC’s Director of Enforcement Cynthia Campbell.

“We are partnering with the EPF and EPS and hoping to engage more disciplines so that together we can find new ways to address this significant issue, protect more Alberta investors, and strengthen our capital market,” said Campbell.

Police Deputy Chief Warns Against Rising Schemes

Deputy Chief Devin Laforce of the Edmonton Police Service emphasized the evolving nature of online fraud tactics, noting that fraudsters are increasingly exploiting technology and public unfamiliarity with crypto to deceive investors.

“Online crypto investment fraud has become a preferred technique for scammers, taking advantage of the general public’s lack of experience with crypto as a high-risk investment vehicle, and the inherent challenges in tracing cryptocurrency transactions,” stated Laforce.