Crypto Scammers Exploit Trade War Fears With Fake Endorsements

According to Cointelegraph, securities regulators in Alberta and New Brunswick have raised alarms about crypto scammers using fake news articles and the likeness of government figures to exploit trade war fears. The Alberta Securities Commission issued an alert on March 7 regarding a crypto investment scam named CanCap, which falsely claimed endorsement from then-Prime Minister Justin Trudeau through a fabricated news article from CBC, Canada's national public broadcaster. The fraudulent article suggested that Trudeau was responding to U.S. tariffs by supporting a digital currency investment program. Similarly, the Financial and Consumer Services Commission of New Brunswick warned on March 5 that CanCap used a fake news article to falsely claim endorsement from New Brunswick Premier Susan Holt. The article, designed to mimic a Telegraph-Journal web article, alleged that Holt supported a 'provincial investment program' in reaction to U.S. tariff increases. It included a fake transcript of an interview with Holt and doctored photos of her promoting the platform. U.S. President Donald Trump’s policies have introduced significant uncertainty for Canadians, particularly following his announcement of a 25% tariff on Canada in February, which was partially rolled back before he threatened a 250% tariff on lumber and dairy. Mark Carney, who succeeded Trudeau as Prime Minister on March 9, criticized Trump for "attacking Canadian families" with these tariffs and vowed that Canada "will win" a trade war. The uncertainty surrounding U.S. tariffs has heightened anxiety among Canadians, prompting some to seek alternative income sources. Marissa Sollows, communications director for the New Brunswick commission, noted that scammers are exploiting this vulnerability. The Alberta and New Brunswick regulators highlighted that scammers are increasingly using current events to manipulate potential victims' fears, employing artificial intelligence to fabricate endorsements and create content that lends legitimacy to their schemes. The scammers have demonstrated adaptability, quickly altering the scheme's name and appearance. They have previously used names like "CanCentra" and "Immediate Flectinium" and have associated the scam with at least six other websites under different domains. Global losses from crypto scams, exploits, and hacks reached nearly $1.53 billion in February, largely due to a $1.4 billion hack on the crypto exchange Bybit, as reported by CertiK. Excluding the Bybit incident, February's crypto losses amounted to over $126 million, marking a 28.5% increase from the $98 million lost in January.