Fake Financial Experts Lure Investors in Online Scams
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.