The Edmonton Police Foundation has launched a contest offering up to $130,000 in prize money for innovative solutions to tackle the growing problem of cryptocurrency scams. The initiative, known as the ScamShield Challenge, aims to reduce the rising number of digital fraud cases and protect individuals from becoming victims of crypto-related crimes.
The foundation, working in partnership with the Edmonton Police Service and the Alberta Securities Commission (ASC), is encouraging creative minds from academia, the tech sector, and beyond to submit groundbreaking ideas that could help prevent fraud on both a local and national scale.
Millions Lost to Crypto Scams
Last year, more than 80 Edmontonians fell victim to cryptocurrency scams, losing a staggering $7 million, according to city police statistics. On a national level, the Canadian Anti-Fraud Centre reported approximately $309 million in investment fraud in 2023, with around 60% of these cases tied to cryptocurrency. As cryptocurrency grows in popularity as an investment option, so does the potential for fraud, with scammers preying on individuals with little to no knowledge of the digital currency market.
Cynthia Campbell, Director of Enforcement at the Alberta Securities Commission, emphasized the increasing risks associated with crypto investment fraud. “Everyone is at risk for these scams. They’re not targeting people who are interested in cryptocurrency. They’re targeting anybody who has any money they want to separate them from,” she said. Campbell noted that more than half of the complaints the ASC receives are related to fraudulent cryptocurrency investments, making it the largest component of fraud in Alberta and beyond.
A Call for Innovative Solutions
The ScamShield Challenge is part of the foundation’s ongoing efforts to develop community-driven solutions to combat crime. Previously, the Edmonton Police Foundation offered prize money for ideas addressing catalytic converter theft, and now they’re turning their attention to the rapidly evolving world of cryptocurrency fraud. The goal of the challenge is to find innovative ways to stop victimization before it happens.
Edmonton Police Service Deputy Chief Devin Laforce echoed Campbell’s concerns, describing cryptocurrency as a “high-risk investment vehicle” due to the complexities of tracing transactions. “Fraud is growing across this country, and crypto investment fraud is the single largest component of fraud,” Campbell added.
The challenge is open to individuals and teams with ideas that could help prevent crypto-related fraud locally, with the potential to implement these solutions across Canada. Submissions are open until November 4, and the foundation is hopeful that the contest will generate new ways to fight back against scammers.
Beware of Fake Platforms
One of the key issues with cryptocurrency fraud is the abundance of fake trading platforms posing as legitimate investment opportunities. These fraudulent websites lure victims by convincing them to convert their cash into digital currency, often under the guise of financial support or an online relationship.
“There are thousands and thousands of such scam websites, but just 15 registered crypto trading platforms in Canada,” Campbell said, urging anyone interested in cryptocurrency to do their due diligence. She recommended that potential investors verify the legitimacy of any platform by visiting the website Checkfirst.ca.
While investing in cryptocurrency carries risks even without the threat of fraud, Campbell warned that those unfamiliar with the digital currency landscape are especially vulnerable. “The majority of people who are victimized by these scams don’t see themselves as investors or didn’t start out with an intention to invest,” she explained.
With the ScamShield Challenge, Edmonton is hoping to bring together bright minds to develop solutions that will stop scammers in their tracks, preventing more people from falling victim to these complex and ever-evolving schemes.
