Ontarian loses $1.7M in a cryptocurrency scam that used an AI video of Elon Musk to lure victims—here’s what happened

A Markham, Ontario resident thought she had found the investment opportunity of a lifetime, only to end up losing her life savings of $1.7 million to an intricate AI-deepfake crypto scam.

The woman, who goes by the pseudonym Denise to protect her identity, told CTV News's W5 investigation team she saw a video on Facebook of billionaire Elon Musk promoting a lucrative investment opportunity (1). Denise initially transferred $250 to Musk’s alleged platform and was told she received US$30 (C$42) in profit two days later. She also explained how she received documentation showing that her investments were growing, which prompted her to take out a second mortgage on her home and invest hundreds of thousands of dollars more with the fraudulent company.

When she tried to withdraw funds, Denise was told she needed to pay additional taxes and fees, so she took out another $500,000 from family and friends and her credit cards.

When she realized she was dealing with a scammer that had used an AI-generated scam video to con her out of her life savings, Denise pleaded with the fraudster — to no avail.

“Well, I guess you’ll have to sell it [your home],” the scammer told her before hanging up.

Advanced AI cryptocurrency schemes on the rise

As AI-generated videos are becoming harder and harder to distinguish from reality (2), bad actors are using the technology to coerce Canadians to invest in elaborate cryptocurrency schemes to drain their bank accounts.

According to the Canadian Anti-Fraud Centre’s (CAFC) 2024 Annual Statistical Report, investment scams made up nearly half of the $643 million that was defrauded from Canadians last year (3), and that number is suspected to be much lower than what is actually stolen. Moreover, Canadians targeted by fraud sent the most amount of money to bad actors via cryptocurrency, averaging around $23,815 per transaction, the agency reported.

To pull off such elaborate heists, criminals are training AI models on images and videos of authoritative figures to create fake videos of them promoting a fraudulent crypto platform or other investment scheme (4). Once the AI is properly trained, it can create a synthesized version of a person to speak, move and act in extremely believable ways.

To make matters worse, scammers aren’t training these models on just anyone. They’re deliberately mimicking public officials, well-known celebrities and influencers to emotionally exploit Canadians and create an immediate sense of trust and reliability. For instance, 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-renowned Canadians that have had their image and likenesses used in similar schemes include Michael Bublé, Rick Mercer, Sidney Crosby and Mary Berg (6).

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How to avoid elaborate AI video scams

With AI video technology likely to only improve, it can be anxiety-inducing to try and parse through what’s real and what’s fake in the world of online investments. Here are some expert-backed tips to help spot AI scammers in action and properly vet investment opportunities that may seem to good to be true (7).

• Watch for video glitches. AI scam videos aren’t perfect. If a public figure or celebrity is endorsing an investment, watch for odd facial expressions, longer-than-usual pauses in speaking or inconsistent lighting. These are tell-tale signs of an AI deepfake video.
• Check official communication channels. If a major public figure is endorsing an investment opportunity, chances are the information is on their public website or has been reported on in the mainstream media. Don’t rely on social media or online videos alone when deciding where to invest.
• Always err on the side of caution. AI investment scams often present an offer that seems too good to be true, such as well above average returns. If you have an accountant, financial advisor, lawyer or just a financially-savvy friend in your circle, lean on them for advice if you think you’ve found a winning investment, as they might provide some much-needed skepticism if things seem too good to be true.

If you do fall victim to an AI scam, do not shame yourself — plenty of educated and financially-literate individuals have made the same mistake in a moment of inadvertant ignorance. Instead, act quickly and report the scam to your local police and the CAFC. Also contact your bank and Equifax/TransUnion if you shared any banking information with scammers. If you made an investment through a fake website, report it to the Competition Bureau of Canada, a federal agency that keeps businesses in check.

While it can be difficult to get your money back after a scam, it is possible — especially if you have enough information to take the bad faith actor to court.

Bottom line

Denise’s harrowing story reveals a disturbing trend: AI investment scams are making it harder to parse investment fact from fiction. But this does not mean Canadians should bury their heads in the sand and steer clear of investing altogether. Instead, they need to remain vigilant in scouting out new investment opportunities and remember this time-testing idiom: “If it’s too good to be true, it probably is.”

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CTV News (1, 5); Spectrum Local News (2); CAFC (3); McAfee (4); CBC News (6); CBA (7)