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 X post. “The deepfake videos are impersonating politicians, celebrities, and news anchors.”

The CAFC said artificial intelligence is 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,” CAFC said in a July 31 warning on its website.

“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 in all industries, including a 1,740 percent surge in North America, according to a news release from Samsub, an identity verification company.

“Our internal statistics show an alarming 10-fold increase in the number of AI-generated deepfakes across industries from 2022 to 2023,” Samsub head of artificial intelligence and machine learning Pavel Goldman-Kalaydin said 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 deep fake cases in 2023, while financial technology, also known as “fintech,” represented 8 percent of cases, a 2023 Samsub report said.

The online media sector saw the biggest increase in identity fraud 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’s authors said.

Ninety-five percent of Canadian businesses and organizations have said they are concerned about the threat of deepfake fraud, according to a recent KPMG survey.

In a survey of 300 Canadian organizations that have already been the victims of fraud, 91 percent said they are worried about what criminals can do with AI.

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 with the website because it said he had earned $40,000. Yet, he was not able to withdraw the money.

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

How to Protect Yourself

The anti-fraud centre said Canadians can best protect themselves from deepfake fraud through the following:

• Assuming videos of public figures promoting investments are fake, and doing research to verify they are real;

• Being cautious when videos show public figures making sensational or provocative statements;

• Watching for signs of video editing errors like mismatched audio, inconsistent lighting or shadows, and unnatural movements;

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

• Verifying email addresses, URLs, phone numbers, and addresses because fraudsters will use the names of legitimate companies for credibility and;

• Looking into whether the investment company is registered with a Provincial Securities Regulator or the National Registration Search Tool.

Anyone who thinks they may have been the victim of fraud or cybercrime should contact the police.