Canada's Crypto Scam Epidemic: AI-Enhanced Deepfakes Leave Investors Devastated
Canada is grappling with a surge in AI-enhanced crypto scams that are leaving investors financially devastated. According to the Canadian Anti-Fraud Centre, Canadians lost over $704 million to fraud in 2025, with reported losses since 2022 surpassing $2.4 billion. Investment scams made up 49% of the overall dollar loss, and crypto was the primary medium for these scams, with an average loss of $23,815 CAD per transaction.
The rise of AI has enabled scammers to create highly convincing deepfakes and voice clones that mimic real people. In a study by the Ontario Securities Commission (OSC), 22% more investors put money into AI-enhanced scams than conventional ones. The OSC found two trends: scammers using generative AI to 'turbocharge' existing scams, and scammers selling the promise of 'AI-enhanced' investment opportunities.
Regulators have issued warnings about red flags such as fake celebrity endorsements, unregistered investment platforms, and requests for remote access or fees to withdraw. The Canadian Securities Administrators (CSA) advise investors to search for registered firms at AreTheyRegistered.ca and confirm the identity of representatives by calling listed phone numbers.