Two Ontarians have collectively lost $230,000 to separate cryptocurrency scams fueled by sophisticated AI-generated social media ads, police warn. These scams falsely use the likeness of high-profile figures to lure victims into fraudulent investments.
Deceptive Ads Featuring Celebrities
One victim, Tak Gord Takasaki of Brantford, Ontario, was tricked by a Facebook ad that appeared to feature billionaire Elon Musk endorsing cryptocurrency investments. The ad also depicted other prominent figures like Wayne Gretzky and Prime Minister Justin Trudeau.
“I wanted to invest, and somebody called me to set up an account,” said Takasaki. “The ad made it seem like AI was revolutionizing investments.”
Takasaki initially invested a small amount but was persuaded to deposit more as his supposed returns skyrocketed. However, when he attempted to withdraw his funds, he discovered they were gone. In total, he lost $30,000, which he had borrowed on a line of credit.
A Family’s Savings Wiped Out
Another victim, identified only as Marion from the Greater Toronto Area, lost her entire retirement savings. She was drawn in by a Facebook ad featuring two well-known celebrities promoting a cryptocurrency app. Marion invested $200,000, which appeared to grow to over $500,000. But when she attempted to withdraw her funds, the scam became clear.
“The scammer was so convincing,” Marion said. “I truly believed I could earn more than through traditional banks. I was manipulated into trusting them.”
Now, Marion is struggling to pay her bills and may be forced to sell her home.
The Ontario Provincial Police (OPP) has launched “Project Atlas,” a sweeping investigation into cryptocurrency fraud. Det.-Const. John Armitt of the OPP Anti-Rackets Division reported uncovering 2,000 victims in Canada and other countries, with one Toronto investor losing a staggering $10 million.
“These ads lure people into investing large sums of money, often using borrowed funds, only to discover their investments have vanished,” said Armitt. “Once crypto funds are transferred, they’re nearly impossible to recover.”
Authorities are urging investors to:
- Avoid trusting social media ads for financial advice.
- Conduct thorough, independent research before investing.
- Be wary of promises of high returns with little risk.
Victims should also avoid falling for recovery scams, where fraudsters claim they can retrieve lost funds for an additional fee.t
Takasaki is now burdened with a $30,000 debt, paying monthly interest on a loan for money he will never recover. Marion, devastated by her $200,000 loss, described her experience: “It felt like I was brainwashed. I kept believing I’d make all this money.”
These cases highlight the devastating impact of AI-driven scams, leaving victims financially ruined and emotionally drained. As AI technology evolves, so too does the sophistication of fraudsters. Staying vigilant and skeptical of “too good to be true” offers is the first step toward protecting yourself and your investments.