The ASC partners with Edmonton Police to find new solutions to tackle crypto fraud through ScamShield
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.
This initiative seeks innovative solutions to address the growing issue of online crypto investment fraud. With a prize pool of up to $130,000, the challenge is part of the EPF’s Community Solutions Accelerator (CSA) and complements the ongoing work of the ASC and police to safeguard Alberta's capital markets.
The ASC estimates that over 60 percent of the $309m in investment fraud reported to the Canadian Anti-Fraud Centre in 2023 involved crypto fraud. In Edmonton alone, there were more than 80 victims, resulting in losses exceeding $7m.
These figures likely underestimate the full scope, as many incidents go unreported. Cynthia Campbell, ASC’s director of Enforcement, stressed the importance of this collaboration, saying, “Anyone can be the victim of a scam, and the impact can be devastating.”
She emphasized the need to involve multiple disciplines to find new ways to protect investors and strengthen Alberta’s capital market.
Fraudsters often exploit people who don't see themselves as investors, using psychological tactics such as social media deepfake scams and romance frauds.
Deputy Chief Devin Laforce of the EPS noted that online crypto investment fraud has become a preferred technique for scammers, taking advantage of the public's limited knowledge of crypto and the complexities of tracking cryptocurrency transactions.
“As technological developments create new opportunities, criminals continually refine their methods,” Laforce said, acknowledging the challenge in tackling these issues alone.
Ashif Mawji, a board member of the EPF, highlighted the significance of collaboration in combating these complex crimes. By pooling resources and expertise, the ASC, EPS, and EPF aim to foster innovation to combat emerging threats effectively.
