Two Canadians have lost a combined $2.3 million after being targeted by cryptocurrency investment scams that used AI-generated videos impersonating well-known public figures to lure victims into transferring large sums of money.
Two Canadians have lost more than $2.3 million after falling victim to sophisticated cryptocurrency investment scams that used artificial intelligence to impersonate public figures and promote fraudulent investment platforms.
In one case, a 51-year-old woman from Markham, Ontario, lost approximately $1.7 million after viewing an AI-generated video online that appeared to feature billionaire Elon Musk promoting a cryptocurrency investment opportunity. Investigators later determined the video had been manipulated and did not involve Musk.
The woman, identified only as Denise, reported that she initially transferred a small amount after being told she would earn daily profits. Shortly afterward, she was shown what appeared to be investment statements indicating her funds were growing. Convinced the platform was legitimate, she invested increasingly larger sums.
According to her account, Denise eventually took out a second mortgage on her home and borrowed additional money from family members and friends, believing her investments had grown to more than $3 million. When she attempted to withdraw the funds, she was told she needed to pay additional taxes and fees. The money was never returned.
In a second case, a man from Charlottetown, Prince Edward Island, reported losing approximately $600,000 after seeing an AI-generated video that appeared to promote cryptocurrency investments associated with the television program Dragon’s Den. The video was later determined to be fraudulent.
The man said he began investing small amounts before increasing his deposits significantly after being shown fabricated investment growth. Like the first victim, he discovered the funds could not be withdrawn once he attempted to access his account.
Authorities warn that criminals are increasingly using AI-generated videos and altered audio to make it appear as though politicians, celebrities, and media personalities are endorsing investment platforms. The Canadian Anti-Fraud Centre reports that Canadians have lost at least $1.2 billion to investment scams over the past three years, though officials believe the true figure is much higher due to underreporting.
Officials say the sophistication of artificial intelligence has made it increasingly difficult for victims to distinguish legitimate content from fraudulent material, contributing to the growing scale of investment fraud across Canada.
