Crypto scammers are leveraging on fake news articles and impersonating government officials to exploit public fears surrounding trade wars, according to securities regulators in Alberta and New Brunswick.

In a March 7 alert, the Alberta Securities Commission warned about a crypto investment scam called CanCap, which falsely claimed then-Prime Minister Justin Trudeau’s endorsement through a fabricated news article from CBC, Canada’s national public broadcaster.

“The fake article suggests that the Prime Minister is responding to U.S. tariffs by endorsing an investment program involving digital currencies,” the commission stated.

Similarly, the Financial and Consumer Services Commission of New Brunswick issued a warning on March 5, stating that CanCap had used a forged news article mimicking the Telegraph-Journal, falsely claiming that New Brunswick Premier Susan Holt endorsed the platform.

The scam included a fake transcript of an interview in which Holt allegedly promoted CanCap, along with doctored photos of her unveiling the fraudulent investment program.

Scammers Exploit Political Uncertainty

Trade tensions between the U.S. and Canada have created an atmosphere of financial anxiety, making it easier for scammers to manipulate public fears.

In February, U.S. President Donald Trump imposed a 25% tariff on Canadian imports, which was briefly rolled back, only to be followed by threats of a 250% tariff on lumber and dairy.

Mark Carney, who replaced Trudeau as Prime Minister on March 9, condemned Trump’s actions as an “attack on Canadian families”, vowing that Canada would “win” any trade war.

Regulators warn that these economic uncertainties create fertile ground for fraud, as individuals seek alternative income sources. Marissa Sollows, the communications director of the New Brunswick Financial and Consumer Services Commission said:

“The uncertainty that the U.S tariffs place on our economy is causing some New Brunswickers increased anxiety and concern about thier financial security, and they might be looking at alternative means of income. Scammers are taking advantage of the situation, preying on individuals when they are at their most vulnerable.”

Scammers using narratives from current events

Authorities also cautioned that scammers are now using artificial intelligence to generate realistic fake endorsements and content, making fraud schemes appear more credible.

The CanCap scam has already rebranded multiple times, operating under names like CanCentra and Immediate Flectinium, and has been linked to at least six different websites.

According to CertiK, global losses to crypto scams, exploits, and hacks totaled a staggering $1.53 billion in February. The majority of this was due to a $1.4 billion hack on crypto exchange Bybit.

Even when excluding the Bybit breach, February still saw $126 million lost to crypto-related fraud, marking a 28.5% increase from January’s $98 million in losses.