The Alberta Securities Commission (ASC) has teamed up with the Edmonton Police Foundation (EPF) and Edmonton Police Service (EPS) to unveil a new initiative aimed at combating crypto fraud in Canada. This collaboration comes in response to the growing prevalence of cryptocurrency investment schemes in the country, as reported by the Edmonton Police Service.
The $96,000 Challenge to Combat crypto Fraud
Known as the ScamShield: Investor Protection Challenge, this project offers a prize pool of up to 130,000 CAD (approximately $96,000) for innovative proposals that enhance investor protection and tackle the escalating issue of crypto-related scams in Alberta. The challenge is part of EPF’s Community Solutions Accelerator and is open to participants from various sectors such as academia, technology, and innovation.
The goal of the challenge is to solicit effective strategies for addressing crypto investment fraud, with submissions being accepted until November 4. Recent data from the ASC revealed that more than 60% of the $309 million in reported investment scams in Canada last year involved crypto assets.
Losses exceeding $7 million in Edmonton alone underscore the urgent need for new protective measures to safeguard investors and bolster the integrity of local capital markets. Cynthia Campbell, ASC’s Director of Enforcement, expressed the gravity of the situation, emphasizing the devastating impact that scams can have on individuals.
“We are partnering with the EPF and EPS to explore new approaches in addressing this significant issue, protecting Alberta investors, and fortifying our capital market,” stated Campbell.
Warning Against Rising Schemes
Deputy Chief Devin Laforce of the Edmonton Police Service issued a stark warning about the evolving nature of online fraud tactics, pointing out that fraudsters are increasingly leveraging technology and exploiting public ignorance about crypto to perpetrate scams.
“Online crypto investment fraud has become a favored method for scammers, capitalizing on the lack of experience among the general public regarding crypto as a high-risk investment option, as well as the challenges associated with tracing cryptocurrency transactions,” explained Laforce.
