Winnipeg police get funding to boost blockchain-related cybercrime investigation unit

The Manitoba provincial government is providing new funding to the capital’s police department, the Winnipeg Police Service (WPS), to upgrade its force to combat cybercrime related to digital assets.

Manitoba Attorney General Kelvin Goertzen announced in a press release that CAD 100,000 (almost US$78,000) has been approved for WPS from the Manitoba Criminal Property Forfeiture Fund.

The funding will enable the department to train an additional five members of the cyber crime team. The officers will participate in the “Cryptocurrency Tracing Certified Examiner” training program.

A portion of the approved amount will also go towards the purchase of specialized software such as CipherTrace and Blockchain Forensics to help the police force track illicit financial activities in the digital asset space.

The release highlighted that the funding comes against the backdrop of an exponential increase in the rate of “cyber-enabled crimes.” According to the government, reported cybercrime in the province has increased by more than 370% in the past four years.

In a statement, Sargent Trevor Thompson of the Winnipeg Police Financial Crimes Unit said this increase may be linked to the growing popularity of digital assets in Canada.

“As cryptocurrencies have increased in popularity and become more accessible, criminal actors have now migrated into this area and primarily use cryptocurrencies as a medium to obtain money from their victims. To combat the rise in the use of cryptocurrencies in criminal enterprises, police must adapt, he said.

The province is in the midst of investigating several reports of online fraud. “Grandparent scams,” as police are calling the cases, are believed to be perpetrated by an organized group that allegedly swindled more than $100,000 from more than a dozen senior citizens in Manitoba.

Canada is still fighting for clearer regulations for digital assets

The province of Manitoba has long been on the case of criminals with digital assets. Back in 2020, the Manitoba Securities Commission (MSC) issued a consumer warning against two digital asset firms targeting residents of the province after its investigation uncovered inconsistencies that indicated the firms were scams.

Meanwhile, Manitoba hasn’t been the only Canadian province to see a rise in digital asset fraud. Earlier this year, consumer group the Better Business Bureau (BBB) ​​warned that digital asset fraud was becoming endemic in the country.

According to our previous report, the Bank of Canada has said that the digital asset industry poses a relatively small risk to the country, but still needs regulation to keep pace with growth.

See: BSV Global Blockchain Convention panel, Cybersecurity: A Safer World with Blockchain

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