Scams are getting more sophisticated and pose a significant threat to unwitting people. A woman from Montreal has recently lost over $25,000 to fraud from a phony cryptocurrency trading website that falsely used the image of Elon Musk.

An anonymous woman viewed a video of Elon Musk on Facebook, which he uploaded to promote a new trading platform that he had just launched. In the video, Musk says he made the trading platform to help people better their financial situation. The woman found the video convincing due to the presence of the CBC News icon.

Pushed by financial desperation, the lady clicked on the link provided in the video, only to be contacted a few moments later by a broker who had an association with the trading platform. Buoyed by the handsome gains and a promise of financial improvement, she put in almost 25,000 US dollars on the platform.

Suspicion arose when she attempted to withdraw her savings. In an effort to delay the withdrawals, the company demanded fees and security deposits on withdrawals, but these demands drove her into even more debt. However, her attempts to recover her money afterwards proved abortive, and she became one of the few who got into the scammers’ net.

Widespread Impact of Investment Fraud

Investment fraud continues to be a serious problem affecting many Canadians just like the rest of the world. The reported losses, according to the Canadian Anti-Fraud Centre (CAFC), to victims of investment scams are pegged at a breathtaking $314 millionᅳjust from last year alone. What is even more appalling is the fact that a good chunk of such losses emanates from schemes involving cryptocurrency.

“These platforms look very realistic, very legitimate looking, but unfortunately, a lot of times months down the line, the victim will realize they have been scammed when it comes to the task of withdrawing the funds.”

Jeff Horncastle, communications outreach officer at the CAFC.

The Role of Deep Fake Technology in Scams

Tech analyst Carmi Levy zeroes in on deep-fake technology and its use in such scams. He points out that, most probably, an AI-generated deep-fake video was made with Elon Musk advertising the fake trading platform. Levy advises against this blind faith in online content but instead recommends that skepticism should be exercised until the authenticity of the content is established.

In the wake of that, Levy says an essential check for any investor is using reputable trading platforms registered with provincial securities commissions. He also advised that URL links should be checked and be wary of unsolicited sources leading to investment opportunities.

Sourced from CTVNews Montreal

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