Trade War Fears Exploited in Sophisticated Crypto Scam, Canadian Regulators Alert
Canadian securities regulators have issued urgent warnings about a cryptocurrency investment scam that’s manipulating public anxieties around recent U.S.-Canada trade tensions.
The scheme, operating under various names including “CanCap,” creates fabricated news articles featuring doctored endorsements from high-profile Canadian government officials to lure vulnerable investors.
Fake Political Endorsements Target Economic Anxiety
The Alberta Securities Commission revealed in a March 7 alert that scammers had created counterfeit news articles purportedly from the Canadian Broadcasting Corporation (CBC) featuring false endorsements from then-Prime Minister Justin Trudeau. These fraudulent articles claimed Trudeau was promoting a cryptocurrency investment program as a strategic response to American tariffs.
Similar tactics were observed in New Brunswick, where the provincial Financial and Consumer Services Commission warned on March 5 that scammers had fabricated a Telegraph-Journal article showing Premier Susan Holt allegedly endorsing the platform. The elaborate deception included doctored photographs of Holt at a fictional platform launch event and a fabricated CBC interview transcript.
“The uncertainty that the US tariffs place on our economy is causing some New Brunswickers increased anxiety and concern about their financial security, and they may be looking for other means of income,” explained Marissa Sollows, the commission’s communications director. “Scammers are taking advantage of the situation, preying on individuals when they are at their most vulnerable.”
Evolving Tactics Leverage AI and Current Events
Regulators highlighted how these scammers are rapidly adapting their approach, frequently changing names and website domains to evade detection. The operation has already operated under multiple identities including “CanCentra” and “Immediate Flectinium,” with connections to at least six different websites.
Both watchdog agencies noted that artificial intelligence tools are enabling scammers to produce increasingly convincing fake content, including realistic endorsements from public figures. The scheme deliberately exploits heightened economic anxieties following President Donald Trump’s recent trade actions against Canada, which have included fluctuating tariffs on Canadian exports and threats of massive increases on lumber and dairy products.
The warnings come amid a concerning trend in cryptocurrency-related fraud. According to security firm CertiK, global losses to crypto scams, exploits and hacks reached nearly $1.53 billion in February alone. Even excluding a major $1.4 billion hack on crypto exchange Bybit, February’s crypto losses still represented a 28.5% increase from January’s figures.