Crypto Scammers Use AI-Generated Fake News to Deceive Investors, Warn Canadian Regulators!

Crypto Scammers Use AI-Generated Fake News to Deceive Investors, Warn Canadian Regulators!

Securities regulators in Alberta and New Brunswick have issued warnings about an emerging crypto scam that preys on trade war anxieties, using fake news articles and AI-generated endorsements from government figures to lure victims.

The Alberta Securities Commission (ASC) flagged a fraudulent investment scheme known as CanCap in a March 7 alert. According to the ASC, scammers fabricated a news article from CBC, Canada’s national public broadcaster, falsely claiming that then-Prime Minister Justin Trudeau had endorsed the crypto platform as a response to U.S. tariffs.

“The fake article suggests that the Prime Minister supports a digital currency investment program as a strategic countermeasure to U.S. trade policies,” the ASC stated.

Similarly, the Financial and Consumer Services Commission of New Brunswick (FCNB) issued a warning on March 5, revealing that CanCap had used another counterfeit article, this time impersonating the Telegraph-Journal. The fraudulent piece alleged that New Brunswick Premier Susan Holt backed the crypto platform as part of a so-called “provincial investment program” aimed at mitigating the economic impact of U.S. tariffs.

The FCNB noted that the fake article even included an AI-generated transcript of an interview in which Holt supposedly promoted CanCap, along with doctored images of her unveiling the initiative.

Scammers Exploit Economic Uncertainty Amid Trade Tensions

The scam surfaces at a time of heightened financial uncertainty for Canadians. U.S. President Donald Trump’s decision to impose 25% tariffs on Canadian goods in February sent shockwaves through the economy. Although the tariffs were partially rolled back shortly after their implementation, Trump quickly escalated tensions again, threatening a 250% tariff on Canadian lumber and dairy exports.

In response, Mark Carney, who replaced Trudeau as Prime Minister on March 9, condemned Trump’s actions, calling them an attack on Canadian families and vowing that Canada would “win” any trade war.

Against this backdrop of instability, many Canadians—especially those in New Brunswick—are feeling increased financial anxiety, making them more vulnerable to scams, according to Marissa Sollows, FCNB’s communications director.

“Scammers are capitalizing on economic uncertainty, preying on individuals when they feel most vulnerable,” Sollows said in a statement.

AI-Powered Deception and the Changing Faces of Fraud

Regulators warn that fraudsters are rapidly adapting their tactics, using artificial intelligence to create deepfake endorsements, fabricated interviews, and hyper-realistic content that lend credibility to their schemes.

Authorities also highlighted the fluid nature of these scams, explaining that fraudsters frequently rebrand to evade detection. The CanCap scheme has already operated under alternative names, including CanCentra and Immediate Flectinium, and has been linked to at least six different domains.

The scope of crypto-related fraud continues to grow at an alarming rate. In February alone, global losses from crypto scams, hacks, and exploits reached nearly $1.53 billion, largely due to a $1.4 billion hack on the exchange Bybit, according to blockchain security firm CertiK. Even when excluding the Bybit attack, crypto-related losses still climbed to $126 million, marking a 28.5% increase from January’s $98 million.

As scams become increasingly sophisticated, regulators urge investors to exercise extreme caution, verify information through official sources, and remain wary of investment opportunities that appear too good to be true.