Associated Incidents
Two Canadians from Ontario and Prince Edward Island lost a combined $2.3 million to an AI-enabled deepfake cryptocurrency investment scheme. The Ontario victim lost $1.7 million after being deceived by a fake Elon Musk video, while the other victim lost $600,000 after watching a clip falsely linked to Dragon's Den. The report was updated on December 21, 2025.
Updated on December 21, 2025 12:31 PM UTC, the report details that two Canadians from Markham, Ontario, and Prince Edward Island lost a combined $2.3 million to a deepfake cryptocurrency investment scheme. According to W5, AI-generated videos and fabricated dashboards were used to persuade targets that small deposits were producing real profits.
How victims were lured by AI imposters
A 51-year-old woman from Markham saw a Facebook clip that appeared to feature Elon Musk discussing a crypto opportunity. She sent an initial $250 and, two days later, was shown a $30 gain, which encouraged further deposits and trust in documents that looked official.
"I applied for almost a million dollars on the equity of my home. I took it out and I started sending it to them. Right? Like $350,000 and then $350,000." --- Ontario victim, Markham
Scammers later displayed a balance of $3 million and demanded taxes and fees before any withdrawal. To cover those costs, she borrowed $500,000 from family and friends and maxed out credit cards, bringing her total losses to $1.7 million.
A man in Prince Edward Island encountered a video that claimed a link to the TV program Dragon's Den and suggested investing could start at $250. He increased his transfers over time, at one point sending $10,000 per day, and ultimately lost $600,000. As with the first case, a fake balance of more than $1 million was shown, and withdrawal attempts were blocked.
Together, their losses totaled $2.3 million. According to the Canadian Anti-Fraud Centre, Canadians have lost $1.2 billion to investment scams over three years, and the agency believes actual losses are higher.
Reports of industrial-scale fraud networks
Former U.S. prosecutor Erin West said the fraud is organized like an industry and that many callers are themselves victims, trafficked to scam compounds in Southeast Asia and forced to work long hours. Those who refuse or attempt escape face beatings or torture, according to her account.
West described visiting cyber fraud compounds in the Philippines and said their scale reflects industrial-level operations that rely on psychological manipulation, technology, and human trafficking. She warned that as deepfake tools become cheaper and more accessible, similar scams are likely to expand globally, making it harder for ordinary investors to distinguish legitimate opportunities from AI-driven fraud.