Architectural Cases

Online fraudsters are increasingly impersonating well-known financial experts to deceive investors, using AI-generated videos and fake social media accounts. Prominent figures like Brian Belski from Bank of Montreal have publicly warned their followers about imposters attempting to exploit their credibility. These scams typically lure victims into WhatsApp groups where fraudulent investment advice is given, often leading to significant financial losses. Despite efforts by real professionals and legal experts to report these activities, removing such content remains a challenge. Social media platforms, particularly Meta, face scrutiny over accountability, as scam ads continue to circulate despite policies prohibiting them.

The rise of deepfake technology has made it easier for scammers to create convincing replicas of financial analysts, economists, and commentators. For example, Martin Wolf, an economics columnist for the Financial Times, faced a similar situation when deepfakes of him offering investment tips reached nearly a million users in the EU alone. Although Meta eventually enrolled Mr. Wolf in a facial recognition program designed to detect fake profiles, many victims had already been deceived before any action was taken. The use of AI allows scammers to mimic not only voices but also facial expressions, making the deception more believable and harder to identify.

In Canada, the financial impact of these scams has grown significantly, with reported losses rising by 95% since 2021. Many victims are enticed by promises of high returns on investments, which appear more attractive than traditional low-interest options like GICs. Tanya Walker, a legal expert in fraud cases, notes that changing economic conditions have made people more susceptible to these schemes. Meanwhile, law enforcement faces obstacles due to the international nature of these crimes, often originating from jurisdictions that do not cooperate with Canadian authorities. Detective David Coffey from Toronto Police highlights how AI tools are being used to scrape legitimate business identities for fraudulent purposes, increasing both the frequency and effectiveness of these cons.

While some argue that social media companies should bear greater responsibility, current laws protect platforms under the “safe harbor” principle unless they actively endorse or ignore harmful content. Legal experts like Kenneth Jull suggest that holding tech giants accountable requires clear evidence of negligence or willful blindness. In Australia, a coordinated national response involving telecom and social media firms led to a notable drop in reported fraud losses. This model could offer insights for improving Canada’s approach. However, until stronger global cooperation and advanced detection systems become widespread, investors must remain vigilant against increasingly sophisticated online impersonators promising unrealistic returns.

In 2025, the TIAA Institute-GFLEC Personal Finance Index revealed a significant knowledge gap in understanding financial risk among U.S. adults, with only 36% answering questions correctly. This marks the lowest score across all eight categories surveyed and shows a decline since 2017. Every generation, from Gen Z to the Silent Generation, struggles with grasping risk, which affects decision-making in insurance, debt management, savings, and retirement planning. The consequences of this misunderstanding are substantial, leading to financial fragility, increased debt constraints, and limited emergency preparedness. Despite its importance, comprehension of risk does not improve significantly with age, indicating a systemic lack of education rather than a lack of experience.

Rising Financial Vulnerability Due to Risk Misunderstanding

In the current financial landscape, understanding risk remains elusive for many Americans. According to recent data released in early 2025, less than half of U.S. adults truly grasp how risk impacts their financial decisions. The study, conducted by the TIAA Institute and GFLEC, found that only 36% of adults could correctly answer basic questions related to financial risk—a troubling statistic that underscores a widespread issue affecting people regardless of age or income level. Gen Z scored the lowest at 32%, followed closely by millennials at 36%, Gen X at 37%, and boomers at 38%. Even the most experienced group, the Silent Generation, only reached 39% accuracy. These findings suggest that the challenge of understanding risk is persistent and pervasive, impacting individuals throughout their financial journey.

Educating for a More Secure Financial Future

The implications of poor risk literacy extend beyond personal investment choices. They manifest in everyday financial behaviors—such as skipping essential insurance coverage, purchasing unnecessary warranties, or taking on high-interest debt without a repayment strategy. The ripple effects include heightened financial stress, reduced flexibility in handling emergencies, and an overall inability to build long-term wealth. Alarmingly, the P-Fin Index also found that those with low financial knowledge are twice as likely to face debt constraints and three times more likely to be financially fragile. With a quarter of adults expecting their financial situation to worsen in the coming year, improving risk comprehension has never been more urgent.

Towards Better Financial Decision-Making

As a journalist observing the evolving financial landscape, it’s clear that the problem of risk misunderstanding isn’t simply due to inexperience—it stems from a lack of accessible education and practical tools. While other financial skills like saving and borrowing show slight improvement over time, risk comprehension remains stagnant across generations. This suggests that traditional learning through life experience isn’t enough. What’s needed now is a shift toward more effective financial education strategies that simplify complex concepts and integrate them into daily decision-making. By fostering awareness of trade-offs, encouraging scenario planning, and promoting smart protective measures, individuals can begin to navigate uncertainty with greater confidence and clarity.