Increase in ‘Deepfakes’ Deceiving Canadians, Anti-Fraud Centre Says

A man uses a computer keyboard in Toronto on Oct. 9, 2023. The Canadian Press/Graeme Roy

More Canadians are being tricked out of their money by fraudsters’ use of “deepfakes,” which include fake videos of well-known individuals, according to the Canadian Anti-Fraud Centre (CAFC).

“The CAFC is seeing an increase in reporting where fraudsters are using deepfake technology,” the organization said in a July 31 post on X also published on its website. “The deepfake videos are impersonating politicians, celebrities, and news anchors.”

The CAFC said artificial intelligence (AI) is being used to create content using footage that looks and sounds like celebrities, such as Elon Musk or Prime Minister Justin Trudeau.

“Deepfake videos utilize sophisticated artificial intelligence algorithms to manipulate audio and video to make it appear as though the trusted person is promoting fraudulent investment platforms, merchandise or applications,” the centre said.

“These deepfake videos can be convincing, making it difficult for viewers to identify the video as authentic or not. They often circulate on social media platforms and, in some cases, are being used to commit fraud and spread false information.”

Global statistics show an increase in the number of deepfakes being used across industries and regions, including a 1,740 percent surge in North America, according to a news release from Samsub, an identity verification company, announcing release of its Identity Fraud Report 2023.

“Our internal statistics show an alarming tenfold increase in the number of AI-generated deepfakes across industries from 2022 to 2023,” said Pavel Goldman-Kalaydin, Samsub head of artificial intelligence and machine learning, in the release.

He said deepfakes are used for identity theft, scams, and misinformation campaigns and could be used “on an unprecedented scale.”

AI-driven fraud is seen in every industry, but some, such as crypto, are harder hit than others. Crypto accounted for 88 percent of all deepfake cases detected in 2023, followed by financial technology, also known as “fintech,” which represented 8 percent of cases, the 2023 Samsub report said.

The online media sector saw the biggest increase in identity fraud, growing from 1.56 percent in 2021 to 4.27 percent in 2023.

“Online media encompassing news websites, streaming services, social platforms, and digital advertising, face an escalating risk
of fraud,” the report said.

In a survey of 300 Canadian business organizations that have been victimized by fraud, 95 percent of their leaders said they were very concerned that the threat of deepfakes has increased the risk of fraud at their companies, according to a news release in March from consulting firm KPMG.

Moreover, 91 percent said they were worried about what criminals can do with AI using deepfakes.

Of those organizations, 89 percent said they had to “scramble or react quickly” to pull together a fraud detection and prevention program after an incident.

Celebrities Impersonated

A Toronto man said earlier this year that he lost $12,000 to a cryptocurrency scam that used a deepfake video of Prime Minister Justin Trudeau. The AI-manipulated video used voice cloning to make it seem like Trudeau was endorsing an investment platform.

Stephen Henry said he initially invested $250 but then put in more and more money because the website said he had earned $40,000. Yet, he was unable to withdraw any of the money.

Another man, a resident of Barrie, Ontario, said he was involved in a similar scam in September 2023 that involved AI depictions of Trudeau and tech billionnaire Elon Musk. He said he lost more than US$11,000 to the scam.

How to Protect Yourself

The anti-fraud centre provided a list of warning signs to advise Canadians on how they can best protect themselves from deepfake fraud:

• Assume videos of public figures promoting investments or merchandise are fake until you can prove otherwise by doing your own research.

• Be cautious when videos show information that seem to good to be true or show public figures saying something out of character, as deepfakes often rely on sensational or provocative content to manipulate viewers.

• Watch for signs of video editing like mismatched audio, inconsistent lighting and shadows, or unnatural movements.

• Cross-checking what the video is claiming by looking for information from trusted sources.

• Verify email addresses, URLs, phone numbers and their physical addresses because some fraudsters will use the names of legitimate companies to lend credibility to the fraud.

• Look into whether the investment company is registered with your provincial securities regulator or the National Registration Search Tool.

If you think you may have been the victim of fraud or cybercrime, contact the police.