Inside The Scam

Crypto investment fraud isn’t just a scam, it’s an industry. And right now, it’s booming. Across Alberta and beyond, scammers are using social media, messaging apps, and fake investment platforms to steal millions. They prey on trust, spinning elaborate stories of once-in-a-lifetime opportunities. And by the time victims realize the truth, it’s too late. I'm collaborating with the Government of Alberta and its investigative intelligence department to uncover just how deep this problem runs, and how to fight back.

To understand the real impact, I sat down with someone who lost everything to one of these scams. A single message led to months of trust, persuasion, and what seemed like a foolproof investment. Then, overnight, it was gone. No more responses. No way to withdraw funds. Just an empty bank account and the realization they’d been deceived. But to truly grasp the scale of this, we also need to understand the other side, the scammers. Who are they? How do they operate? And why is it so hard to stop them?

This investigation takes us inside the evolving world of crypto fraud, where stolen identities, deepfake technology, and highly organized crime rings make deception look effortless. But we’re not just here to expose the problem. We’re working to solve it. Alongside investigative teams, we’re leading research and innovation to build a real-time scam detection system. The goal? To stop these scams before they happen. Because for too long, the victims have been left picking up the pieces. It’s time to shift the balance.

I recently meet a woman named Sarah (name changed for privacy), whose life was shattered by an elaborate online scam. Sarah is a mother of two, a hard worker, and someone who had every reason to trust the person she believed was her financial advisor. Over the course of several months, she poured her life savings into what she thought was a promising investment. It wasn’t until the withdrawals stopped and the advisor disappeared that the chilling truth set in, she had been conned. As Sarah talked to me from her small, quiet living room, I could feel the weight of her despair. “I don’t just feel robbed,” she said. “I feel erased. Everything I worked for is gone. Sarah’s story is devastating, but tragically, it’s not unique. Scams like this exploit trust and technology, targeting people in moments of vulnerability. As I listened to her recount every heartbreaking detail, I couldn’t help but think about the tools we have, and the tools we still need, to fight back. This meeting reaffirmed my commitment to research and innovation in scam prevention. By harnessing technology to expose fraudulent activity before it escalates, we can protect people like Sarah and rebuild trust in an increasingly digital world.

Crypto fraud isn’t just about money, it’s about control. Scammers don’t just steal, they manipulate, earning their victims’ trust before pulling the rug out from under them. To truly understand how these scammers operate, I needed to hear it from the other side. That’s how I ended up sitting across from someone who built an empire on deception. For the sake of this investigation, I’ll call him Alex. He’s young, charismatic, and disturbingly self-aware. His operation? Running investment scams through crypto.

“You don’t just steal money,” Alex tells me. “You make them want to give it to you."

It starts on social media, Instagram, Facebook, even LinkedIn. The accounts look legitimate, complete with polished posts, luxury cars, and fake testimonials. A message arrives in your inbox. It’s casual, non-threatening. “Hey, I see you’re into investing! I’ve been making great returns on crypto, ever thought about it?”

The goal isn’t to sell you right away. It’s to start a conversation. The more you talk, the more Alex tailors his pitch to your insecurities, your ambitions, your fears.

“People want to believe they’re smart,” he says, smirking. “So I let them prove it to themselves.

”Next comes the hook, a small, easy investment. Maybe $500. The platform he sends them to looks professional, complete with a dashboard tracking “profits” in real time. Within days, their money has doubled. They feel like they’re winning.

But here’s the catch, that first payout is real. “You always pay them at least once,” Alex explains. “Because once they see that money hit their account, they’re all in. That’s when you go for the big score.

”The next deposit is bigger, $5,000, maybe $10,000. And that’s when things start to go wrong. Suddenly, there’s a “processing issue.” Maybe they need to pay a small fee to unlock their profits. Maybe they’re told their account has been flagged and they need to verify their identity, another delay tactic.

Meanwhile, Alex has already moved their money.

“By the time they realize it’s gone, it’s too late,” he shrugs. “They’ll send a hundred emails, call the ‘support line’ we set up, but it doesn’t matter. We just stop responding.

”I ask him if he feels guilty. He laughs.

“No one forces them to send the money. They just don’t want to admit they were scammed.

”This is the reality of modern financial crime, it’s not a one-time con. It’s a system, an industry, and it’s evolving faster than most people realize. That’s why I’ve partnered with the Government of Alberta and its investigative intelligence department to stop scams like this before they happen. Through our research, we’re developing real-time detection technology.

Sometimes, the only way to catch scammers is with technology that sees what the human eye can’t. That’s exactly what happened when we opened up our solution to the public. For weeks, submissions came in with Individuals verifying the legitimacy of potential transactions. Almost all were deemed safe. But then, one flagged immediately. The case was simple on the surface. A woman was preparing to transact with someone she’d met online. She submitted his name, contact details, and LinkedIn profile for review. His digital presence checked every box. Active posts, professional headshots, even a history of engagement with industry leaders. But our system saw something different. The moment the flag triggered, our algorithms went to work, pulling in every available data point. What it uncovered was chilling. The name and credentials didn’t belong to the person in the photos. The LinkedIn profile, though convincing, was a clone, its engagement history artificially boosted. The connections largely fabricated. Facial recognition confirmed that the scammer had stolen images from a real financial professional, using them to create an entirely fake persona. Without this technology, the woman admitted she likely would have gone through with the transaction. Everything looked real. But beneath the surface, it was nothing more than a carefully designed illusion.

The prototype platform continuously scans vast amounts of data, flagging suspicious activity instantly. Advanced machine learning models detect subtle red flags, things most people wouldn’t notice. By integrating intelligence from across industries, law enforcement, and cybersecurity networks, the system connects the dots on emerging scams. Even the most convincing fake profiles can’t hide when cross-checked against real-world data. Fraudsters rely on being ahead of the game. They count on their victims being too trusting, too rushed, or too uninformed to spot the warning signs. But by combining technology, investigative expertise, and real-time intelligence, we can make sure they no longer have that advantage.

To build this prototype, I had to step inside the mind of a scammer. I had to understand how they think, what drives them, and why they do what they do. Like every research project, breaking down the core components of the challenge, the quantum material behind the deception, is critical. That’s why I teamed up with Kai to build a psychological and behavioral profile of the average scammer. Who they are and how they operate.

Ransomware attackers are typically driven by a complex interplay of motivations, predominantly financial gain. There can also be a desire for power, control, and, in some cases, ideological or political objectives. Financial incentives remain the primary catalyst, with cybercriminals extorting substantial sums from victims to decrypt compromised data. Beyond monetary rewards, the act of successfully breaching systems provides a sense of dominance and accomplishment, especially among those who feel marginalized or powerless in other aspects of their lives. Some attackers are further motivated by political or ideological beliefs, using cyber-attacks as a means to further their agenda or promote a specific cause. ?

Behaviorally, these individuals often exhibit high levels of patience, technical proficiency, and adaptability. They meticulously plan their attacks, conducting thorough reconnaissance to identify vulnerabilities within target systems. This methodical approach is complemented by their adeptness in social engineering tactics, manipulating human psychology to gain unauthorized access. For instance, they exploit trust and curiosity through phishing emails or fake social media profiles, deceiving individuals into divulging sensitive information or clicking on malicious links. ?

Personality-wise, many ransomware attackers share distinct traits. This includes an inclination for risk-taking, problem-solving prowess, and an indifference to ethical boundaries. The physical and digital distance inherent in online crime can create a psychological disconnect, minimizing the moral weight of their actions. This environment enables cybercriminals to justify their behavior in ways they might not if they had to face their victims in person. ?Socially, these actors often operate within clandestine online communities, where they exchange tools, techniques, and intelligence. These networks provide not only resources but also a sense of belonging and recognition among peers. Within these circles, the successful deployment of ransomware campaigns can elevate an individual’s status, further fueling their activities.

One thing that stood out at the elite level of scamming, evil isn’t always obvious. There’s no stereotypical villain. Instead, I saw something unexpected. I saw kindness, professionalism, even an almost unsettling level of refinement. These aren’t reckless criminals; they’re calculated, disciplined, and, in their own way, highly skilled. It’s not what most people imagine. Getting a glimpse into this world, one that most people never see, was eye-opening. And for that insight, I have to acknowledge the willingness of those who let me in. The success of this prototype proved one thing, real-time scam prevention is possible. By leveraging advanced analytics, AI-driven detection, and global intelligence sharing, we were able to intercept fraudulent activity before victims ever sent a dime. The system not only flagged high-risk transactions, but also provided actionable insights that helped individuals make informed decisions.