Deepfake crypto scams have cost two Canadians a combined $2.3 million through sophisticated online fraud.
The victims believed they were using legitimate platforms after seeing convincing AI-generated videos. They realized the truth only after access to their funds was blocked.
A 51-year-old woman from Markham, Ontario, lost $1.7 million. A man from Charlottetown, Prince Edward Island, lost $600,000. Both cases were reviewed during a W5 investigation into crypto fraud targeting Canadians. Investigators found victims were shown false profits to build trust.
Victims drawn in by fake endorsements
The Ontario woman said she saw a Facebook video appearing to show Elon Musk promoting a crypto opportunity. The video promised quick returns from a small initial deposit. The footage was a deepfake using altered images and voice.
She sent $250 and saw a reported profit within days. The result convinced her the platform was legitimate. She was later shown documents showing steady growth in her account.
She borrowed heavily to increase investments. She refinanced her home and sent large transfers. The scammers then claimed her balance had reached $3 million.
When she tried to withdraw funds, she was told to pay taxes and fees. She borrowed from relatives and used credit cards. Her total loss reached $1.7 million.
Similar tactics are used across Canada
The Prince Edward Island victim followed a similar pattern. He saw an online video tied to the television show Dragon’s Den. The video claimed investors could begin with $250.
He sent small amounts at first. Over time, daily transfers reached $10,000. His total investment reached $600,000.
He was shown fake balances suggesting his account exceeded $1 million. When he requested withdrawals, access was denied. Communication later stopped.
The Canadian Anti-Fraud Centre reports $1.2 billion lost to investment scams in three years. Officials believe the true figure is much higher.
Crypto fraud operates as a global system
Former United States prosecutor Erin West says crypto scams function like organized businesses. She now investigates cryptocurrency fraud full-time.
West said many scam callers are trafficking victims. They are forced to work inside compounds in Southeast Asia. Survivors report violence, threats, and torture.
Amnesty International identified over 50 scam sites in Cambodia. Workers contacted victims daily to build trust. The money flows to organized crime groups.
West criticized social media platforms for allowing AI-generated scam ads. Meta said it removes deceptive content and invests in detection systems.
Crackdowns in Southeast Asia are pushing operations toward Latin America and Africa. Experts say prevention depends on stopping scams before victims engage.
