This challenge seeks innovative and actionable solutions that can be successfully implemented to reduce victimization from a particularly devastating type of scam affecting Albertans.
Online crypto investment fraud has skyrocketed in Alberta and globally. These scams typically start on social media platforms, messaging apps, text message, or websites. Scammers connect with victims, build trust, and lure them with the promise of lucrative crypto investment opportunities. Victims are enticed to 'invest' through fraudulent platforms or websites controlled by the scammers and are misled about their returns. When they attempt to withdraw their funds, they discover the harsh reality—their investments were illusions, and their money is gone.
This is where you come in...
The Alberta Securities Commission (ASC) recently highlighted the most prevalent crypto-related scams of 2024, revealing a landscape where fraudsters leverage technology and psychological manipulation to deceive investors. We are looking for solutions that can be implemented to accomplish one or more of the following: prevent victimization, detect scams, deter scammers, disrupt scammers or the scam cycle, reduce harm, and educate investors. Enforcement opportunities and tactics are being explored in other venues and will not be considered in this challenge.
The scam cycle is continually evolving but here are some common aspects:
Initial contact:
Scam progression and technology used:
Introduction of crypto "investment opportunity":
Transfer of funds to scammers:
Where the stolen funds go:
The scammers behind the schemes:
Here are some links that expand on these scams:
Investigating the con that combines romance scams and crypto fraud (CBC Marketplace) https://www.youtube.com/watch?v=nDg2z8QPuWc
Human trafficking victims tortured into scamming innocent people (60 Minutes Australia)
https://youtu.be/7b7JAX03x2Q?si=eJzSdxrljCI0xc1c
Pig Butchering Scams: Last Week Tonight with John Oliver (HBO)
https://youtu.be/pLPpl2ISKTg?si=toum3CpO0LiFuqQZ
Current solutions and their limitations
We're looking for bright minds and bold ideas to develop new strategies that can protect investors and disrupt the scammers' tactics. Whether you're an individual with a groundbreaking idea or a team with a leading-edge solution, this challenge offers a unique opportunity to make a real difference in the fight against online crypto investment scams.
Existing considerations
While current solutions to identify fraudulent crypto investment websites exist, these tools are often costly and demand continuous adaptation to keep pace with evolving scam tactics. The identification of fraudulent websites requires an effort to remove them through internet registries or domain hosts by request. We invite participants to explore new methodologies, collaborations, or technologies that can integrate with, or improve upon, current systems to protect investors more efficiently and economically. Your solution could involve novel partnerships, leveraging existing data in creative ways, or developing tools that empower investors directly. We encourage you to think beyond traditional frameworks to effectively disrupt and deter online crypto investment fraud.
Traditional awareness campaigns, frequently considered a prevention tactic, may have limited success in altering behaviors and reducing instances of fraud according to a recent study. This presents a critical opportunity to redefine how to educate and engage the public about crypto investment fraud. We are not seeking conventional mass media outreach strategies. Instead, this challenge invites innovative solutions that could include interventions that are effective at the individual level. We encourage participants to consider how to create targeted, impactful educational experiences that drive behavioral change and reduce the risk of online crypto investment fraud.
Current challenges
There are several opportunities participants may consider.
Enhancing Coordination and Connectivity: Foster collaboration among government entities, law enforcement, regulators, technology companies, the financial sector, registered crypto exchanges, and victim services organizations to develop comprehensive solutions.
Facilitating Information Sharing and Analysis: Create platforms and protocols for seamless information exchange between government, industry, and similarly-mandated agencies to achieve real-time understanding of scam trends and respond effectively to evolving tactics.
Developing Advanced Reporting Systems: Innovate and implement integrated reporting systems to bridge the gap in timely scam identification and response within Alberta and Canada, ensuring cohesive communication among reporting, enforcement, private sector, and victim support agencies.
Managing Information and Enhancing Human Behaviour: Design educational programs and tools that empower individuals to recognize and avoid scams 'just in time,' aligning scam awareness with actionable identification strategies to prevent victimization.
Market opportunity
Beyond the immediate challenge, there is a significant market demand for solutions that reduce investment fraud. Innovators who rise to this challenge will not only contribute to a safer financial landscape but also tap into a vast, growing market that needs effective fraud prevention measures.
Phase 1: Ideation and proposal submission
Objective
The primary objective of this phase is to review the actionable proposals submitted by Innovators. Simplistic solutions with no evidence of effectiveness or a reasonable expectation of success, will not advance to phase two. Examples of simplistic solutions:
“Create a public awareness campaign about online crypto investment fraud.”
“Make social media companies take down ads that are connected to online crypto investment fraud.”
While each of these examples contain valid objectives, this challenge is seeking solutions that include a rationale and roadmap for implementation within a reasonable timeframe.
Participation
Submission requirements
Phase 2: Enhanced evaluation - Finalists
Objective
Phase two will involve an enhanced evaluation of the top submissions, or finalists, with a preference for those that can be implemented in a reasonable time frame. This may include but is not limited to a product demonstration, presentation, or a Q&A with the judges. Participants are free to propose an innovative method to facilitate an enhanced evaluation of their submission. The methodology for the enhanced evaluation phase may be refined based on the content of the top submissions, and is subject to change. The judging and scoring criteria is described in the FAQ section.
Please note that if your submission is selected as a finalist, and you have no plan or roadmap for implementation, the Challenge Sponsor may ask you to either:
This would allow the Sponsor to use your idea or concept for commercial purposes. If you choose not to agree, you won’t be eligible to receive a prize.
Challenge timeline
Launch date: September 4, 2024
Challenge submissions are due: November 4, 2024
Phase 1 challenge judging: October 29 – November 8, 2024
Phase 2 challenge judging: November 12 - December 13, 2024
Challenge winner(s) announced: January 17, 2025
What’s in it for you?
What’s in it for the ASC, Edmonton Police Foundation and the Community Solutions Accelerator?
Stakeholders
If you have any questions about the ScamShield: Investor Protection Challenge, please email .