Crypto scam exploits trade war fears to deceive victims

Canadian securities regulators are warning the public about a cryptocurrency investment scam known as CanCap, which has been exploiting trade war fears to deceive victims.

The Alberta Securities Commission issued an alert on March 7, stating that the scam falsely claimed endorsements from high-profile government officials, including then-Prime Minister Justin Trudeau.

A fabricated news article, supposedly from the CBC, suggested that Trudeau backed a digital currency investment initiative in response to U.S. tariffs.

Similarly, the Financial and Consumer Services Commission of New Brunswick reported that CanCap circulated a fake article featuring Premier Susan Holt, falsely presenting her as a supporter of the platform amid tariff concerns.

These misleading articles contained altered images and transcripts of interviews that never took place, aiming to create a sense of credibility.

The economic uncertainty caused by U.S. President Donald Trump's tariff policies has heightened anxieties, making Canadians more vulnerable to such fraudulent schemes.

Marissa Sollows, communications director for the New Brunswick commission, noted that scammers frequently exploit individuals looking for alternative income sources during periods of financial instability.

Regulatory agencies emphasised that fraudsters are using increasingly sophisticated techniques, including artificial intelligence, to fabricate endorsements and generate misleading content.

Investigators also found that CanCap has operated under different names, such as “CanCentra” and “Immediate Flectinium,” to avoid detection.

The scheme is linked to several unregistered websites, including ecosmartfunds.com and primeinvests.eu, none of which are authorised to facilitate investments in Canada.

In February 2025 alone, global losses from crypto scams reached approximately $1.53 billion, driven by large-scale hacks and fraudulent investment operations.

Regulators urge potential investors to watch for red flags, such as promises of guaranteed high returns and fake celebrity or government endorsements.

To safeguard themselves, individuals are advised to verify investment firms' registration status through the National Registration Search and use resources like CheckFirst.ca to recognise fraud.