Canadian Watchdogs Warn Against Crypto Scam Exploiting Trade War Fears
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Canadian regulators have warned citizens about a growing crypto scam that manipulates trade war concerns to deceive victims. Authorities in Alberta and New Brunswick revealed that scammers use fabricated news articles and fake endorsements from prominent politicians to promote fraudulent investment platforms.
Fake News and Endorsements Used to Deceive Victims
The Alberta Securities Commission issued a warning on March 7 about a cryptocurrency scam known as CanCap. The scheme involved a fabricated news article that falsely claimed that then-Prime Minister Justin Trudeau endorsed a cryptocurrency investment platform.
https://twitter.com/ASCUpdates/status/1898048893700411678
“The fake article notes that the Prime Minister is purportedly responding to US tariffs by endorsing an investment program involving digital currencies,” the commission reported.
On March 5, New Brunswick’s Financial and Consumer Services Commission (FCNB) issued a similar warning, alerting the public to a fake article that claimed New Brunswick Premier Susan Holt supported CanCap.
According to FCNB, the fraudulent article was designed to mimic a Telegraph-Journal report. It included a fabricated transcript of an interview where Holt was quoted promoting investment fraud.
The scammers even created doctored images showing Holt unveiling the fictitious platform.
“The uncertainty that the US tariffs place on our economy is causing some New Brunswickers increased anxiety and concern about their financial security, and they may be looking for other means of income,” said FCNB’s communications director, Marissa Sollows.
“Scammers are taking advantage of the situation, preying on individuals when they are at their most vulnerable.”
Authorities stressed that scammers use artificial intelligence to fabricate content resembling legitimate news articles and social media endorsements. This strategy makes the crypto scam appear more convincing.
Both watchdogs warned that these scammers frequently rebrand their fraudulent operations. CanCap has already operated under the names “CanCentra” and “Immediate Flectinium,” with at least six associated websites under various domains.
Trade War Fears Increase Vulnerability
Rising tensions from the US-Canada trade conflict have created an environment ripe for exploitation.
In February, U.S. President Donald Trump imposed a 25% tariff on Canadian goods. While some tariffs were partially rolled back, Trump later threatened a 250% tariff on crucial industries such as lumber and dairy.
Amid the economic uncertainty, Mark Carney, who will become Justin Trudeau’s successor as the next Canada’s prime minister on March 9, condemned the tariffs, saying they were “attacking Canadian families” and pledged to “win” the trade war.
Scammers have exploited this anxiety by offering fake investment opportunities disguised as government-endorsed financial solutions.
In addition to targeted scams like CanCap, the cryptocurrency industry has faced mounting security issues.
According to blockchain security firm CertiK, global crypto-related losses reached $1.53 billion in February alone, driven mainly by a $1.4 billion breach at the crypto exchange Bybit.
Even excluding the Bybit incident, February’s crypto-related losses amounted to over $126 million—a 28.5% increase from January’s $98 million in losses.
