Anti-Fraud Centre Warns of Rise in Deceptive ‘Deepfake’ Technology Targeting Canadians
According to the Canadian Anti-Fraud Centre (CAFC), more Canadians are falling prey to fraudsters utilizing “deepfakes,” which involve fake videos of well-known individuals.
“The CAFC has noticed an uptick in reports where fraudsters are employing deepfake technology,” the organization stated in a July 31 X post. “These deepfake videos are pretending to be politicians, celebrities, and news anchors.”
The CAFC highlighted that artificial intelligence is utilized to generate content using footage that resembles and sounds like celebrities such as Elon Musk or Prime Minister Justin Trudeau.
“Deepfake videos make use of advanced artificial intelligence algorithms to alter audio and video to create the illusion that the recognized individual is endorsing fraudulent investment platforms, merchandise, or applications,” CAFC indicated in a July 31 warning on its website.
“These deepfake videos can be highly persuasive, making it challenging for viewers to distinguish whether the video is genuine or not. They typically circulate on social media platforms and, in some instances, are utilized to perpetrate fraud and spread false information.”
Global data reveals a surge in the use of deepfakes across all sectors, including a 1,740 percent increase in North America, as stated in a news release from Samsub, an identity verification company.
Related Stories
Pavel Goldman-Kalaydin, Head of Artificial Intelligence and Machine Learning at Samsub, mentioned in the release that there has been a concerning 10-fold rise in AI-generated deepfakes across various sectors from 2022 to 2023.
Goldman-Kalaydin warned that deepfakes are employed for identity theft, scams, and misinformation campaigns and could be utilized “on an unprecedented scale.”
As per a 2023 Samsub report, AI-driven fraud is observed in all industries, with some like crypto experiencing a heavier impact. Crypto constituted 88 percent of all deep fake cases in 2023, while financial technology or “fintech” represented 8 percent of cases.
The online media sector saw a significant rise in identity fraud from 1.56 percent in 2021 to 4.27 percent in 2023.
“Online media, including news websites, streaming services, social platforms, and digital advertising, face an increasing risk of fraud,” highlighted the report’s authors.
A recent survey by KPMG revealed that 95 percent of Canadian businesses and organizations are worried about the threat of deepfake fraud.
In a survey of 300 Canadian organizations that have been victims of fraud, 91 percent expressed concerns about the potential applications of AI by criminals.
Out of these organizations, 89 percent stated that they had to swiftly organize a fraud detection and prevention program in response to an incident.
Celebrities Impersonated
A Toronto man shared earlier this year that he lost $12,000 to a cryptocurrency scam featuring a deepfake video of Prime Minister Justin Trudeau.
The AI-altered video employed voice cloning to create the impression that Trudeau was endorsing an investment platform.
Stephen Henry recounted investing $250 initially, then increasing the amount as the website claimed he had earned $40,000. However, he couldn’t withdraw the money.
In September 2023, a Barrie resident revealed falling victim to a similar scam involving AI representations of Trudeau and Elon Musk, losing over US$11,000.
How to Protect Yourself
The anti-fraud centre recommended Canadians protect themselves from deepfake fraud by:
• Assuming videos of public figures endorsing investments are fake, and validating their authenticity through research;
• Exercising caution with videos depicting public figures making sensational or provocative statements;
• Remaining vigilant for signs of video editing errors like mismatched audio, inconsistent lighting/shadows, and unnatural movements;
• Verifying video claims by seeking information from trusted sources;
• Validating email addresses, URLs, phone numbers, and addresses to ensure fraudsters aren’t using legitimate companies’ names for credibility;
Individuals suspecting they’ve fallen victim to fraud or cybercrime should contact the authorities.
