TruStart's Fraud Prevention Program Blocks More Than $23.5 Million in Suspicious Crypto Transactions

TruStart's multi-layered screening process, unifying identity checks, live human review, and blockchain forensics, is turning every crypto purchase into a checkpoint against fraud.

TORONTO, July 22, 2026 /CNW/ -- TruStart Technologies Limited, a Canadian-registered Money Services Business (MSB) built around high-touch, secure crypto transactions, today shared results from its ongoing Fraud Prevention Program: since it began tracking this metric in June 2025, the program has helped customers avoid more than $23.5 million in losses from transactions later identified as fraudulent or high-risk.

Crypto scams—including impersonation scams, "pig butchering" schemes, and fake investment platforms—have cost consumers billions of dollars globally, and unlike traditional fraud, these losses are often irreversible once funds are transferred. A January 2026 Chainalysis report estimated $17 billion was stolen in crypto scams and fraud in 2025, driven by a 1,400% year-over-year surge in impersonation scams and the growing use of AI, which made scams roughly 4.5 times more profitable than traditional tactics.

In response, TruStart has built its screening process specifically to intercept these evolving crypto scams and fraud before funds ever leave the customer's hands.

"Scammers have become increasingly sophisticated, luring victims at every step of the transaction process until the very moment they authorize a transfer. That's why security can't end with encryption and compliance," said Daniel Schneider, Founder & CEO, TruStart. "Our responsibility goes beyond simply executing transactions—it combines advanced technology, proactive monitoring, and human judgment to help detect signs of manipulation and intervene before irreversible losses occur."

How the Fraud Prevention Program Works

Each potential customer moves through a multi-step screening process before a crypto purchase is completed:

1. Identity verification — Customers complete ID verification and a liveness check via a secure link.
   
   
   
2. Screening questionnaire — Customers answer a series of questions about their source of funds, whether they're being coached or directed by a third party, whether they have sole access to their wallet address, whether the funds are destined for an "investment" platform, their occupation, the type of wallet they use, and whether they are a politically exposed person (PEP).
   
   
3. Live compliance call:
   • 3a. Standard live compliance call — For transactions meeting specified risk or value thresholds, a TruStart team member verifies the customer's identity and responses directly in real time.
   • 3b. Enhanced video verification (where required) — Based on internal risk parameters, certain customers may require enhanced verification measures. For these customers, TruStart conducts a live video verification prior to transaction approval in place of the standard live compliance call described in point 3a. The process includes real-time identity verification and liveness checks designed to help detect impersonation, deep-fake, and synthetic identity risks. Customers complete live verification prompts, including facial movements, physical interactions, and spoken responses generated during the call to confirm their presence and participation in real time. During the video call, TruStart also confirms the customer's understanding of common scam indicators, transaction risks, and the irreversible nature of crypto transfers.
4. Fraud Prevention email — All customers, regardless of whether they completed the standard live compliance call (3a) or enhanced video verification (3b), receive a final KYC questionnaire that must be completed before their purchase can proceed. It includes:
   • A link to TruStart's Fraud Prevention video, which lays out common scam warning signs in plain language. Customers are required to watch the video in full and reply "I acknowledge" to confirm completion.
   • Additional screening questions designed to detect common scam indicators, such as whether the customer is being coached by a third party or intends to send funds to an "investment website."
   • Acknowledgement of key risk disclosures, including that crypto transactions are irreversible and that TruStart Technologies Limited is not affiliated with, nor liable for, any third-party platform the customer sends funds to.

Every response provided through the verification link, live compliance call or enhanced video verification, and email is logged and cross-checked. Any inconsistency or incomplete answer triggers follow-up review—or, where appropriate, an immediate decline.

Behind the scenes, TruStart's compliance team also conducts blockchain forensics through Nominis, tracing the movement of a customer's coins on-chain to detect ties to illicit activity, which may trigger an additional safety check before a transaction is allowed to proceed.

Results so far:

• $23,580,000 in trade volume has been saved or returned to customers since TruStart began tracking the metric in June 2025.
• 1,169 customers have gone through some form of TruStart's fraud prevention materials since December 2024, a program that is continually updated to keep pace with new scam tactics.
• 731 customers have viewed TruStart's Fraud Prevention video. Since its rollout in August 2025, the educational piece has been recognized by law enforcement as an effective consumer education tool. As Constable Meghan Dalcourt of the Calgary Police Service stated: "Thank you for sharing. It's a great video and the messaging couldn't be clearer." TruStart has also granted Constable Dalcourt permission to share the video more broadly within the Calgary Police Service, where it may be used as an educational tool for their team members.

Looking Ahead

TruStart remains committed to staying ahead of the scam and fraud tactics that continue to threaten crypto transactions. The Fraud Prevention Program will keep evolving through ongoing updates to screening questions, staff training, and forensics partnerships—ensuring all customers can transact with confidence as new threats emerge.

For interview requests with CEO Daniel Schneider, please reach out to Jessica Cesario.

About TruStart Technologies Limited

Founded in 2020, TruStart Technologies Ltd. is a Canadian-registered Money Services Business (MSB #M20145008), regulated by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and governed by Canada's Anti-Money Laundering (AML) requirements. Every transaction follows strict AML/KYC protocols and is reported to FINTRAC where required. TruStart has securely facilitated more than $1 billion in cryptocurrency transactions, offering clients high-touch, secure service without unnecessary complexity.

For media enquiries, please contact:

Jessica Cesario
Director of Compliance & Communications
[email protected] 

SOURCE Trustart Technologies Limited

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