TORONTO – A major cryptocurrency fraud has rocked Canada, involving the use of highly convincing Artificial Intelligence (AI) to deceive unsuspecting investors. According to an investigation by W5, two Canadian citizens have collectively lost approximately $2.3 million to scammers using “deepfake” videos of prominent figures, including billionaire Elon Musk.
The fraudsters utilized AI technology to create fake videos that featured the likeness and voices of high-profile individuals to build trust. Denise, a resident of Markham, Ontario, fell victim to a video featuring a deepfake of Elon Musk. The video used Musk’s voice and image to promote a fake investment platform. She initially invested $250 and was shown “profits” to encourage further deposits. Tragically, she ended up losing her life savings, including money obtained by remortgaging her home.
Donald Hanrahan, from Prince Edward Island, lost $600,000. He was misled by an AI-generated video that appeared to show the popular TV show Dragon’s Den endorsing a specific cryptocurrency investment.
The victims realized they were being scammed only when they attempted to withdraw their funds. Instead of releasing the money, the scammers demanded additional payments, claiming they were necessary for “taxes and administrative fees.” This tactic, often called “double-dipping,” allowed the criminals to exploit the victims even further.
The scale of the problem is immense. Data from the Canadian Anti-Fraud Centre (CAFC) reveals that Canadians have lost over $1.2 billion to investment scams in the last three years alone.
Authorities have issued a stern warning to the public, noting that as AI technology becomes more advanced, these fraudulent videos are becoming increasingly difficult to distinguish from reality. They urge citizens to remain vigilant and to verify any investment opportunity through official channels before committing funds.
