A Toronto man has lost $12,000 to a cryptocurrency scam that involved a “deepfake” video of Prime Minister Justin Trudeau, a mistake that he says has robbed him of his life savings.
Stephen Henry saw a YouTube video last November that he thought was real because it appeared to be endorsed by the Liberal leader.
“I thought, ‘It’s got to be legitimate, it’s got to be perfect. If not, how could you get the prime minister?’ So I thought, ‘It’s got to be official,” Mr. Henry told CTV.
The AI-manipulated video used voice cloning to make it appear the prime minister was endorsing an investment platform.
“We have developed an investment platform that we believe can help every Canadian safeguard their financial future even during periods of inflation,” the video said.
Mr. Henry said although he initially invested only $250, he ended up putting in more and more money and though the website claimed he had amassed $40,000, he was unable to withdraw any funds.
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By the time he realized he had been scammed, Mr. Henry said he had spent at least $12,000—his entire savings.
“Now, I’m ripped off of all my chances of ever making a life,” he said. “That was all the money I had.”
Mr. Henry is not the first Ontario resident to fall victim to AI-generated scams involving cryptocurrencies. A resident of Barrie, Ont. last September said a scam involving AI-depictions of Mr. Trudeau and tech billionaire Elon Musk cost him more than US$11,000.
“Trudeau said that he invested in the same thing and he made quite a bit of money, so, I thought it was an opportunity and maybe I could invest a few dollars and the money will grow,” he told CTV.
The Competition Bureau of Canada published a news release earlier this month warning of the dangers of AI and fraud, saying the number of fraud cases doubled from 79,000 per year to 150,000 between 2012 and 2022.
The release highlights fraudulent investment videos and urges people to watch out for “realistic-looking videos of a public figure promoting an investment opportunity, or any other promotion they don’t normally do.” The agency asks Canadians who suspect they may have encountered fraudulent ads online to contact the Competition Bureau or the Canadian Anti-Fraud Centre.
The Canadian Security Intelligence Service (CSIS) has also warned of the threat from deepfakes, saying scams involving AI have resulted in millions of dollars in financial losses.
