Canadian Investor Loses $1.7 Million in Cryptocurrency Scam Using AI-Generated Elon Musk Videos and Falsified Investment Documents

A Markham, Ontario resident, identified only as Denise, lost her life savings of $1.7 million in a cryptocurrency scam that used an AI-generated video of Elon Musk to convince victims to invest. Denise initially saw a video on Facebook showing Musk promoting a lucrative investment opportunity . Believing the promotion to be legitimate, she transferred $250 to the platform and was told she earned US$30 (C$42) two days later. The scammers also provided falsified documentation showing her investments growing, which prompted her to take out a second mortgage and invest hundreds of thousands more.

When Denise attempted to withdraw her funds, she was instructed to pay additional “taxes and fees.” In response, she borrowed $500,000 from family and friends and used her credit cards. By the time she realized the operation was fraudulent, all her funds had been drained. The scammer’s cold response—“Well, I guess you’ll have to sell it [your home]”—illustrates the coercive tactics used to extract maximum amounts from victims.

AI-Powered Fraud on the Rise

The Canadian Anti-Fraud Centre’s 2024 Annual Statistical Report revealed that investment scams accounted for nearly half of the $643 million lost by Canadians last year. Cryptocurrency transfers represented the largest proportion of losses, with an average transaction of $23,815 per victim. Criminals are now exploiting advanced AI tools to generate deepfake videos of well-known figures promoting fraudulent platforms, making scams increasingly convincing.

Scammers focus on high-profile individuals, including public officials, celebrities, and social media influencers, to create trust. For example, Prime Minister Mark Carney was recently impersonated in an AI-driven investment scam, while other Canadians targeted in similar schemes include Michael Bublé, Rick Mercer, Sidney Crosby, and Mary Berg.

Digital Infrastructure Enables Rapid Exploitation

The scams rely on the seamless integration of AI-generated content with online platforms and social media. By manipulating images, videos, and documentation, fraudsters simulate credible investment operations. Victims are often drawn into multi-step schemes involving initial small deposits, falsified profits, and escalating demands for additional funds. The high-speed, decentralized nature of cryptocurrency transfers compounds the difficulty in tracing and recovering stolen assets.

BrokersView Warns: Public Advisory

BrokersView reminds investors to verify any investment opportunity, particularly those involving cryptocurrency, and to exercise caution when prompted to send funds based on unsolicited communications. Individuals should check communications against official company channels, and report suspicious activity to authorities or local law enforcement.