A Markham, Ontario, resident thought he had found the investment opportunity of a lifetime, but a complex AI deepfake crypto scam cost him $1.7 million of his life savings.
The woman, who is using the pseudonym Denise to protect her identity, told CTV News' W5 Investigative Team that she saw a video on Facebook of billionaire Elon Musk promoting a lucrative investment opportunity (1). Dennis initially sent $250 to the platform allegedly belonging to Mr. Musk, and two days later reportedly received a profit of $30 (C$42). She also described how she received documents showing her investments had increased, which led her to take out a second mortgage on her home and invest hundreds of thousands of dollars more in the fraudulent company.
When Dennis tried to withdraw the funds, he was told he would have to pay additional taxes and fees, so he withdrew another $500,000 from family, friends and credit cards.
When Dennis realized he was dealing with a scammer who had scammed him out of his life savings using a fraudulent AI-generated video, he begged the scammer to no avail.
“Well, I guess I'll have to sell it.” [your home]” the scammer told her before hanging up.
As AI-generated videos become increasingly difficult to distinguish from reality (2), bad actors are using this technology to force Canadians to invest in sophisticated cryptocurrency schemes and drain their bank accounts.
According to the Canadian Anti-Fraud Center's (CAFC) 2024 Annual Statistics Report, nearly half of the $643 million defrauded from Canadians last year was due to investment fraud (3), and it is suspected that that number is much lower than the amount actually stolen. Additionally, the agency reported that Canadians targeted by scams sent the most money to bad actors via cryptocurrencies, averaging about $23,815 per transaction.
To pull off these elaborate heists, criminals train AI models on images and videos of authority figures to create fake videos promoting fraudulent crypto platforms and other investment schemes (4). When properly trained, AI can create synthetic versions of humans that speak, move, and behave in highly believable ways.
To make matters worse, scammers aren't training these models on everyone. They intentionally imitate public officials, celebrities, and influencers to emotionally exploit Canadians and create an instant sense of trust. For example, Prime Minister Mark Carney had his likeness used in an AI deepfake scam to promote a fake investment platform earlier this year (5).
Other world-famous Canadians whose images and likenesses were used in similar schemes include Michael Bublé, Rick Mercer, Sidney Crosby, and Mary Berg (6).
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As AI video technology seems to only continue to improve, trying to figure out what's real and what's fake in the world of online investing can be anxiety-provoking. Here are some expert-backed tips to help you identify AI fraudster activity and properly vet investment opportunities that appear to be true (7).
Beware of video glitches. AI scam videos aren't perfect. If a celebrity or public figure is endorsing your investment, watch for strange facial expressions, longer-than-usual pauses in conversation, and inconsistent lighting. These are telltale signs of an AI deepfake video.
Check official communication channels. If a major celebrity endorses an investment opportunity, that information may be posted on a public website or reported in mainstream media. Don't rely solely on social media or online videos when deciding where to invest.
always be cautious. AI investment scams often make offers that seem too good to be true, including returns that are far above average. If you have an accountant, financial advisor, lawyer, or financially savvy friend in your life, ask them for advice if you think you have found a successful investment. They may provide some much-needed skepticism when things seem too good to be true.
If you have fallen victim to an AI scam, don't be ashamed. Many educated and financially literate people inadvertently make the same mistake in moments of ignorance. Instead, act now and report the scam to your local police and CAFC. Also, if you shared your banking information with a scammer, contact your bank and Equifax/TransUnion. If you made an investment through a fake website, report it to the Competition Bureau of Canada, the federal agency that monitors companies.
Getting your money back after a scam can be difficult, but it's possible, especially if you have enough information to bring the bad actors to court.
Dennis' harrowing story reveals a disturbing trend. AI investment fraud makes it difficult to parse investment fact from fiction. But this doesn't mean Canadians should bury their heads in the sand and refrain from investing altogether. Instead, they should always be on the lookout for new investment opportunities and remember this difficult idiom: “If it's too good to be true, it probably is.”
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