Crypto Scams Surge in Canada, AI Tools Exploit investors
The Ontario Securities Commission (OSC) warns that crypto-related fraud is on the rise in Canada. Scammers are using advanced AI tools to deceive investors. They create fake trading platforms and deepfake videos to trick people into losing their money.
Grant Vingoe, CEO of the OSC, highlighted this issue during an annual event. He noted that the current surroundings encourages more scams and fraud. The unpredictability of global events makes it easier for wrongdoers to operate. In 2024, victims reported nearly $640 million in losses, according to the Canadian Anti-Fraud Center.
Bonnie Lysyk, OSC’s enforcement executive, says the commission will focus on high-impact cases. They aim to disrupt fraudsters early. The crypto space is particularly vulnerable to fraud.
Canada started tightening crypto regulations in February 2023.The Canadian Securities Administrators required all crypto platforms to sign pre-registration agreements. This added to existing restrictions, like banning margin trading for Canadian users.
Some stablecoins are considered securities or derivatives. Exchanges can’t offer them without approval. This makes it hard for many platforms to comply. The OSC is working to protect investors in this challenging environment.
