10/03/25

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Scammers in the cryptocurrency sector are exploiting fears related to trade wars by creating fake news articles and impersonating government officials, as highlighted by securities regulators in Alberta and New Brunswick, Canada. An alert from the Alberta Securities Commission dated March 7 revealed that an investment scam known as CanCap falsely claimed to have received endorsement from former Prime Minister Justin Trudeau via a counterfeit article attributed to the Canadian Broadcasting Corporation.

The fabricated article suggested that Trudeau was promoting a digital currency investment program in response to U.S. tariffs. Similarly, New Brunswick’s Financial and Consumer Services Commission warned on March 5 that CanCap had crafted a deceptive article asserting that Premier Susan Holt backed this investment scheme. The fake piece mimicked the appearance of a legitimate local news website and included a fabricated interview transcript in which Holt purportedly endorsed CanCap, accompanied by altered images of her unveiling the program.

The context for these scams is intensified by the uncertain economic landscape resulting from U.S. trade policies. Following President Donald Trump’s imposition of tariffs on Canada, which initially began at 25% in February before being partially rolled back, many Canadians are feeling heightened anxiety over their financial situations. This uncertainty appears to be creating a fertile ground for scammers who are taking advantage of individuals looking for alternative income streams.

Regulators have observed that these fraudsters are increasingly employing technologies, such as artificial intelligence, to generate misleading content and fake endorsements, lending a veneer of legitimacy to their operations. They have already adapted their approach multiple times, using various names — including “CanCentra” and “Immediate Flectinium” — and establishing multiple fraudulent websites.

In light of the escalating threat, global losses attributed to cryptocurrency scams, vulnerabilities, and hacks reached approximately $1.53 billion in February, driven mainly by a significant breach involving a prominent exchange. Excluding the incident, losses still saw a notable increase, underscoring the ongoing risk faced by investors in the volatile crypto market.