Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Alberta Launches ScamSheild Investor Protection Challenge
Crypto | Sep 9, 2024
Image: Scamshield: Investor protection challenge (Herox page)
Alberta Launches $130K ScamShield Challenge with Local Law Enforcement to Combat Rising Crypto Fraud
The Alberta Securities Commission (ASC), Edmonton Police Foundation (EPF), and Edmonton Police Service (EPS) have teamed up to introduce the ScamShield Investor Protection Challenge to stem the concerning increase in fraud involving cryptocurrencies. The challenge is offering a $130,000 prize to the winners and aims to spur innovation to help battle against online investment fraud in crypto, which is becoming more complicated every day.
The challenge was first introduced as a part of the Community Solutions Accelerator (CSA), which is a first-of-its-kind partnership in North American law enforcement, aiming to safeguard investors and boost Alberta's capital markets.
To date, about 2 teams and 20 participants have registered to participate in the challenge. For those interested, more details, including eligibility and evaluation criteria, can be found on the official ScamShield Challenge page at herox.com/scamshield.
Crypto Fraud on the Rise
In Alberta and right across Canada, bitcoin fraud is growing. According to the Canadian Anti-Fraud Centre, over $309 million in investment fraud was recorded in 2023 of which over 60% of the cases involved crypto investment schemes. Approx 80 victims lost $7 million in Edmonton alone last year. Many investigators suspect the number is much higher due to underreporting. Many victims fall for these scams thinking they are going to solve their financial woes, only to be tricked by con artists who use advanced technology (i.e., deepfakes), emotional manipulation, and psychological blackmail.
See: ASC Sanctions Devon Christopher Edwards & KB Crypto
Cynthia Campbell, Director of Enforcement at the ASC:
“Anyone can be the victim of a scam, and the impact can be devastating. 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.”
A Call for Innovation - November 4 Deadline
Participants in the ScamShield Challenge are encouraged to contribute creative ideas that can help regulators and law enforcement in identifying, stopping, and combating cryptocurrency investment fraud. In order to stop more victimization, this multidisciplinary endeavour will make use of academic knowledge, technical developments, and enforcement tactics.
See: BC Crypto Trading Platform Defrauds Customers of $13M
Deputy Chief Devin Laforce of the EPS Investigations and Support Services Bureau:
“Online crypto investment fraud has become a preferred technique for scammers. As technological developments create new opportunities, criminals continually refine their methods, exploiting the digital economy in increasingly creative ways.”
The deadline for submitting a challenge is November 4, 2024. Interested parties can learn more online at www.herox.com/scamshield.
Outlook
The ScamShield Challenge is a novel way to engage all stakeholders to come together in combating the growing threat of crypto investment fraud. By incentivizing innovation and encouraging collaboration between regulators, innovators, the public, and local law enforcement, new standards are being set to tackle online financial crime. We look forward to the regulatory and crime tech solutions.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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