Canada’s financial intelligence agency says financially motivated sexual extortion involving children is becoming more frequent, with many cases showing signs of organized criminal involvement. The Financial Transactions and Reports Analysis Centre of Canada has issued a new alert urging banks and other reporting entities to watch for financial patterns that could signal online extortion or broader child exploitation activity.

The agency notes that offenders often threaten to release intimate images or videos of young victims unless money or additional content is provided. Officials say the alert reflects new trends in digital exploitation since Fintrac last released related intelligence in 2020, and it is intended to help businesses detect activity earlier so police can intervene.

Fintrac reviews millions of financial records each year from sectors including banking, insurance, securities, real estate, and casinos. It then shares intelligence with law enforcement agencies such as the RCMP. The centre says it produced 57 disclosures to police under Project Shadow in 2024–25, identifying 157 subjects of interest. The project is a collaboration among the Canadian Centre for Child Protection, Scotiabank, international financial units, and policing partners.

The agency’s alert warns that online child exploitation continues to grow in scale and severity. While most offenders seek sexual gratification, Fintrac says cases involving financial motives – including extortion schemes – have risen in recent years. Safety advocates in Western Canada have also reported an increase in local families facing online extortion attempts targeting teenagers, underscoring the need for vigilance among parents and community organizations.