Fraudsters Use AI and Fake News to Deceive Investors
Canadian regulators are warning the public about a crypto scam that exploits trade war anxieties and falsely claims endorsements from high-profile politicians.
The Alberta Securities Commission (ASC) issued an alert on March 7, stating that a fraudulent crypto investment scheme called “CanCap” used a fake news article to make it appear as if then-Prime Minister Justin Trudeau supported the platform. The article, designed to resemble a CBC news report, falsely claimed that Trudeau endorsed the program as a response to U.S. tariffs.
A similar warning was issued by the Financial and Consumer Services Commission (FCNB) of New Brunswick on March 5. The FCNB highlighted that the scam also used Premier Susan Holt’s name and image in a fake article designed to look like a Telegraph-Journal web post. The fabricated piece even included a fake CBC interview transcript in which Holt supposedly promoted CanCap, alongside manipulated images of her unveiling the platform.
Trade War Uncertainty Creates an Opportunity for Scammers
The scam capitalizes on economic uncertainty fueled by former U.S. President Donald Trump’s tariff policies. In February, Trump announced a 25% tariff on Canadian goods, which was briefly rolled back before he threatened a staggering 250% tariff on lumber and dairy.
Amid this turmoil, scammers seized the moment to prey on individuals seeking financial security.
“The uncertainty that the U.S. tariffs place on our economy is causing some New Brunswickers increased anxiety and concern about their financial security, and they may be looking for other means of income,” said Marissa Sollows, the FCNB’s communications director. “Scammers are taking advantage of the situation, preying on individuals when they are at their most vulnerable.”
AI-Powered Deception and Expanding Fraud Tactics
Regulators noted that scammers are increasingly using artificial intelligence to create fake endorsements and fabricate realistic content, making fraudulent schemes appear more legitimate.
Authorities have already identified multiple rebranded versions of the CanCap scam, including names such as “CanCentra” and “Immediate Flectinium.” The scheme has been linked to at least six different websites under various domain names, demonstrating how quickly fraudsters can adapt to avoid detection.
