Celebrity, athlete deepfakes among investment scams targeting Albertans: ASC

A stock photo showing a cellphone opening the TikTok social media app. (pixabay/antonbe-633106)

As scammers continue incorporating artificial intelligence into their schemes, Albertans are being warned to be wary of celebrity endorsements that may be fake.

On Wednesday, the Alberta Securities Commission (ASC) released its top three investment scams to look out for in 2024.

On it was a caution about celebrity and athlete endorsements on social media, which can be phoney.

Even if you see a video of a superstar praising an investment opportunity, it could be an artificially generated fake video, known as a deepfake, made without the celebrity having knowledge or involvement about it.

Even if it's not a deepfake, the ASC says you still shouldn't be too trusting.

"Regardless of how convincing they look or sound, actors, models, athletes, politicians or entrepreneurs are not automatically reliable or qualified sources of financial advice," said spokesperson Hilary McMeekin in a Wednesday news release.

"Endorsements are never a guarantee of legitimacy or investment returns."

Romance scams

In addition to celebrity and athlete endorsements and social media deepfakes, the ASC says romance scams are heating up.

According to the organization, dating app fraud and romance scams have seen a significant uptick in recent years.

"In Alberta, there were 70 reports of romance scams with losses exceeding $2.6 million in 2023, though the actual figure is believed to be much larger as many do not report being a victim out of embarrassment or shame," said the ASC in a release.

In romance scams, fraudsters take advantage of vulnerable people looking for friendship or love.

Once a relationship is established, they exploit the trust and attachment created to request money or fabricate investment opportunities, often related to crypto.

Signs of a romance or dating scam include an online stranger expressing love or affection too soon.

They may then avoid meeting in person or on video calls, and will eventually ask for money, crypto or offer a crypto investment that they can invest in on your behalf.

"Always be cautious of new friends or acquaintances that take an immediate interest in your finances or offer investment advice," McMeekin said.

Recovery room scams

The final investment con ASC wants Albertans to look out for in 2024 is called a recovery room scam.

In this type of fraud, con artists will impersonate regulators, recovery agencies or law enforcement and attempt to defraud victims again under the pretext of recovering their lost crypto assets or funds for a fee.

"To make it more convincing, fraudster’s target these recent victims using information from the original scam," the ASC said in a release.

"Stay alert for red flags like fee requests and demands for banking or personal details,” added McMeekin. "Neither law enforcement agencies nor the Alberta Securities Commission will ever contact you with an unsolicited offer to recover your money or assets for a fee."

Recovering funds from fraudulent crypto investment scams is rarely possible, so the ASC warns that If it seems too good to be true, it probably is. 

"It’s become harder to determine which opportunities are legitimate and which are not," McMeekin said.

"The common thread we are seeing with crypto and other scams is that people are trusting others, especially those they may not know well or at all."

For more information, you can visit the Alberta Securities Commission's website.