New challenge seeks to tackle online crypto investment fraud with innovation
Sep 04, 2024
Partnership between ASC, EPF and EPS welcomes proposals to combat rising scams
Edmonton – September 4, 2024 – The Alberta Securities Commission (ASC) has partnered with the Edmonton Police Foundation (EPF) and the Edmonton Police Service (EPS) to launch the ScamShield: Investor Protection Challenge to seek new and innovative solutions to address the growing threat of online crypto investment fraud.
As part of EPF’s Community Solutions Accelerator (CSA), the challenge is designed to complement the work already being done by the ASC and police. With a prize pool of up to $130,000, this challenge calls for innovative solutions to enhance investor protection and strengthen Alberta’s capital market.
The ASC estimates that more than 60 per cent of the $309 million of investment fraud reported to the Canadian Anti-Fraud Centre in 2023 was tied to crypto investment frauds. In Edmonton alone, there were more than 80 victims with combined losses of over $7,000,000 last year. The true amount is likely higher because these crimes are vastly underreported. Those that do report provide valuable information on how scams are growing and evolving. This helps inform law enforcement's approach to addressing these scams.
“Anyone can be the victim of a scam and the impact can be devastating,” said Cynthia Campbell, Director of Enforcement at the ASC. “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.”
Many victims do not consider themselves investors but get lured into a scam believing it can help solve their financial troubles. Fraudsters leverage technology and psychological manipulation to deceive investors through social media deepfake scams, romance scams, emotional manipulation and other online tactics.
Preventing online crypto investment fraud requires a multi-pronged approach. This challenge provides an opportunity for those in academia, technology, and innovation to work together with enforcement partners to propose new and novel ways to stop further victimization locally and potentially on a national scale.
“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,” said Deputy Chief Devin Laforce with the EPS Investigations and Support Services Bureau. “As technological developments create new opportunities, criminals continually refine their methods, exploiting the digital economy in increasingly creative ways. Police continue to investigate and pursue these criminals to the fullest extent of the law, but the pervasiveness of their tactics makes this an issue we cannot tackle alone.”
“The Edmonton Police Foundation recognizes the importance of collaboration in combatting complex crime issues,” said Ashif Mawji, board member of EPF. “By working hand in hand with the EPS and ASC, we can support law enforcement efforts, provide additional resources, and foster innovation to address emerging threats effectively.”
Officially launching today, challenge submissions will be accepted until November 4, 2024. More information on eligibility and evaluation criteria can be found online at www.herox.com/scamshield.
EPS and the EPF were the first to bring the CSA approach to policing in North America in 2020. The CSA leverages expertise, data, technology, and support from multiple sources to work collectively on challenges that have been identified by the community, social agencies, healthcare, and law enforcement.
The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
For further information please contact:
Elisha Jackson
Edmonton Police Foundation
elisha@edmontonpolicefoundaton.com
587-226-6329
Tannis Nygren
Edmonton Police Foundation
tannis.nygren@edmontonpolice.ca
Tanja McMorris
Alberta Securities Commission
media@asc.ca