OTTAWA Canada’s financial-intelligence agency is raising the alarm over a growing trend: sexual extortion of children tied to online exploitation and financial profit. The agency says the rise in such cases appears connected to organized crime. The alert, issued by Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), warns banks, money-service firms and other financial institutions to watch for patterns that may signal extortion such as sudden, unexplained transfers of funds, rapid account depletion, gift-card purchases, or repeated peer-to-peer payments.
FINTRAC’s data from 2024–25, gathered under a joint effort called Project Shadow, generated 57 financial-intelligence disclosures for law enforcement agencies. Those disclosures identified 157 subjects of interest linked to suspected cases of child sexual exploitation and extortion.
How the Extortion Works
According to the alert, perpetrators often pose as teenagers or young adults on social-media platforms to befriend children. Once trust is built, the offender may solicit nude images or videos. After receiving such content, they threaten to publish it publicly unless the victim pays money, sends gift cards, or provides additional images.
In many of the identified cases, offenders are male and range in age from their late 20s to 60s. Some are employed in various occupations; others report themselves as retired. The alert notes that financial exchanges, including small-value transfers, are part of a broader exploitation scheme that may involve international criminal networks.
Why Experts Are Concerned
Authorities say the rise in financially motivated exploitation rather than purely sexual gratification — marks a troubling shift. Historically, many online child-exploitation cases involved the creation or sharing of illicit images; now, the financial incentive adds new urgency for vigilance.
Research also suggests the problem is widespread: national hotlines and abuse-reporting services have seen growing numbers of reports. Experts warn that extortion can have deep psychological impacts on victims including shame, fear, and long-term trauma and may deter victims from coming forward.
What Has Been Done And What Still Needs Attention
The federal government has recently increased support for online-exploitation investigations. Under the 2025 national strategy to protect children from online abuse, the government committed nearly CAN$40 million to strengthen Internet-child-exploitation units, allowing them to hire more staff and access better tools for investigations.
Still, investigators and protection agencies say more awareness is needed especially from families, educators, and financial institutions. They urge parents to talk to children about online safety, and banks to stay alert for unusual payment patterns that might signal extortion or trafficking.
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