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- Securities regulators in Canada have warned about a crypto scam called CanCap that falsely claims endorsements from government officials.
- Scammers use artificial intelligence to create fake news articles and manipulate investor fears, frequently changing names and websites.
The securities authorities of the Canadian provinces of Alberta and New Brunswick recently warned the public about CanCap, a crypto fraud scheme. The scam involves portraying that it is backed by government officials and capitalizing on people’s fear surrounding trade policies.
The Alberta Securities Commission also exposed the CanCap of having falsified an endorsement from the ex-Prime Minister of Canada. The scam involved an article with text resembling a news article that could be from Canada’s national broadcaster (CBC). This article later claimed that Trudeau supported a crypto-based investment program in response to tariffs from the United States.
The ASC is warning the public about a recently reported crypto investment scam called CanCap. Visit https://t.co/pgSeA5fcCz for more information on how you can spot the signs of fraud and protect yourself https://t.co/977V8mhMCi pic.twitter.com/MIz8ckOkbj
— Alberta Securities Commission (@ASCUpdates) March 7, 2025
Likewise, the Financial and Consumer Services Commission of New Brunswick noted that CanCap misled the public into associating it with Premier Susan Holt. He revealed that the scammers developed a fake Telegraph-Journal article and an interview where Holt endorsed the plan. Other images were also superimposed to lend an authentic appearance to the fake stories.
Trade War Fears escalates the scams
Officials also reported that criminals are now using artificial intelligence to build fake endorsements and generate fake content. This easily makes it hard to counter them because they frequently change names as well as website addresses. CanCap has been using other names, such as CanCentra and Immediate Flectinium, to operate across multiple domains.
The current global instability stimulates various scammers to actively engage people who are concerned with economic instabilities. US tariffs introduced in February have affected finances and have opened up new opportunities for all kinds of Ponzi schemes that are attracting people who seek ways to save money.
Authorities emphasize the necessity to investigate investment offers and understand what signals to look for, namely, offers received without prior contact and guarantees of high income with low risk.
Crypto Scams on the Rise
Blockchain analytics firm Chainalysis recently stated that in 2024, $9.9 billion was sent to these crypto wallets tied to the scams. The firm estimated it to be at $12.4 billion and believes that the figure will increase as more scams are detected.
The report also reported the rise of romance-based scams, locally known as “pig butchering.” These involve a fraudster contacting the victim over social media or a dating app and encouraging the person to invest in fake crypto prospects.
Also, the use of Artificial Intelligence services has regularly increased in crypto scams. Similarly, the data from Chainalysis showed that some AI service providers like Houione saw their revenue increase by 1900% year over year.
According to the North American Securities Administrators Association (NASAA), some of the many risks that retail investors will face in 2025 include crypto scams and social media fraud. As part of the survey, state and provincial regulators from both the United States and Canada cited that fraudsters are leveraging AI and crypto to increase the effectiveness of the fraud. NASAA President Leslie Van Buskirk said scammers take advantage of the fear of missing out (FOMO), which makes investors invest without researching well.
