Congratulations to Gabriella Benny on her winning entry for the 2025 Haywood Hunt & Associates Inc. Annual Scholarship. This was the 8th year of our scholarship and we’d like to thank everyone who submitted well-researched and well-written essays again this year. Check back soon on the details of our 2026 scholarship!
2024 Scholarship Winning Entry: By Gabriella Benny
Over the past decade, fraud cases in Canada have skyrocketed from 79,000 in 2012 to 150,000 in 2022 (1). In 2024 alone, $647 million was lost to fraud, with over 36,000 Canadians falling victim (2). Since artificial intelligence (AI) has become more accessible, it has enabled the creation of more convincing scams (3). In particular, the use of generative AI, which has the ability to produce complex and highly-realistic content (4), poses a significant threat in the context of online fraud. Furthermore, with AI and related technologies continuously advancing, AI-generated scams are becoming more difficult to detect (3). This reality emphasizes the importance of understanding how AI can be used to perpetuate fraud through impersonation, and AI phishing scams, as well as methods of preventing online fraud. In doing so, not only can major financial losses be prevented, but emotional and psychological repercussions can be mitigated as well.
Impersonation and Deepfakes
One way AI perpetuates fraud is through impersonation, specifically, by generating fake images, audio, or videos of real people (1). In several cases, AI has been used to clone voices and images sourced from public videos, and has used this material to impersonate real victims, subsequently requesting money or sensitive information from their friends and family (3). In Canada, AI-generated scams such as these have been reported; primarily targeting older adults (6). For example, AI has been used to generate the voice of a family member in distress to pressure victims to send money or share personal information to help them (6). Similarly, some scammers have used AI to forge videos of CEOs, politicians, and financial experts, encouraging unsuspecting individuals to invest in new fraudulent opportunities, cryptocurrency, or startups (3). In fact, a study that examined investor vulnerability to fraudulent investments, found that participants invested 22% more in AI-enhanced scams than in conventional scams (5). This reflects that AI-enhanced scams are not only a risk to personal identity, but also a danger to financial security due to their realistic nature. These patterns highlight the need to learn how to recognize the signs of a scam or fraud, and remain vigilant; even when the information seems to be from a trusted source.
AI-Generated Phishing and Scam Messages
Generative AI can also be used to generate fraudulent texts, emails, and unsolicited requests for information that appear to be from a trusted bank or institution (3). Formerly, an easy way to recognize phishing was from the presence of poor grammar and typos (6). However, AI now creates messages that appear more legitimate (6). And comparably, to deepfakes and impersonation tactics, AI phishing scams tend to ask victims to disclose personal and sensitive information. Information including, but not limited to, passwords, one-time passcodes (OTP), credit card numbers, and answers to security questions (3).
How to Combat AI Fraud Online
Recognize Core Tactics
Regardless of how advanced AI scams become, their core tactics remain the same (3). This emphasizes the importance of being able to recognize these tactics and be proactive in protecting yourself from fraud. A common tactic to be aware of are urgent requests for personal details (3). According to the Canadian Bankers Association, a, “bank will never send you an email, or call you on the phone, asking you to disclose personal information,” (3). So, even if the text or email looks legitimate, requests like these are clear signs of a scam.
Likewise, deepfakes that impersonate loved ones or well-known people, can also be spotted with a trained eye. For instance, videos of public figures promoting an investment opportunity or other promotion that they don’t usually promote, strange phrases, or unusual body or facial movements in videos, are all indicators of a scam (1). If something feels off, remember to never act on video, audio, or social media posts alone, always verify the message through official sources before responding (3). Awareness and education about identifying scams is crucial, and makes a difference. In fact, the same study that found people invested 22% more in fraudulent investments, also found that investments in fraudulent scams decreased by 10% when fraud awareness, or education was introduced to investors (5).
Technology to Protect Against Fraud
In addition, the same study also found that web-browser plug-ins reduced investment in fraudulent scams by 31% (5). Linking to the importance of equipping devices with antivirus and firewall software. As this will not only lower susceptibility to online fraud, but also protect devices against malicious attacks (3), by scanning devices for malware and hidden computer viruses (7).
Report Fraud
Most importantly, to keep yourself and others safe, make sure to report suspected scams. More specifically, report scams to the Canadian Anti-Fraud Centre (CAFC); the CAFC takes reports on all types of scams and fraud (3). And if financial information or money has been shared in a scam, contact your bank or credit card company; they will help secure your account and stop fraudulent transactions (3). Furthermore, you can also report to the local police department if the scam involves a large financial loss or identity theft (3). Many police departments have non-emergency fraud reporting either online or by phone (3). And lastly, fake and fraudulent websites can be reported to the Competition Bureau; they assist in enforcing laws against misleading marketing practices (3).
Break the Cycle of Fraud
Remember, falling victim to a scam is nothing to be ashamed of, regardless of how serious. It is thought that the impact of embarrassment is why only 5-10% of incidents of fraud are reported in Canada (8). Keep in mind that by reporting a scam, law enforcement can stop scammers, and better prevent fraud (8). Moreover, continue to learn about how AI is continuously evolving, how it can be used to create scams, and invest in technologies to protect yourself; this will assist in remaining vigilant and protecting your information against fraud.
Bibliography
- COMPETITION BUREAU CANADA. The rise of AI: Fraud in the digital age. Government of Canada. Online. 4 March 2024. Available from: https://www.canada.ca/en/competition-bureau/news/2024/03/the-rise-of-ai-fraud-in-the-digital-age.html
- CANADIAN ANTI-FRAUD CENTRE. The impact of fraud so far this year. Government of Canada. Online. 16 July 2025. Available from: https://antifraudcentre-centreantifraude.ca/index-eng.htm
- CANADIAN BANKERS ASSOCIATION. Spotting AI-generated scams: practical tips to protect yourself. Cba.ca. Online. 2025. Available from: https://cba.ca/article/spotting-ai-generated-scams
- NATIONAL DEFENCE. What is AI? Government of Canada. Online. 11 March 2024. Available from: https://www.canada.ca/en/department-national-defence/corporate/reports-publications/dnd-caf-artificial-intelligence-strategy/what-is-ai.html
- ONTARIO SECURITIES COMMISSION. OSC research finds AI-enhanced scams pose significant risk to investors. Ontario Securities Commission (OSC). Online. 25 September 2024. Available from: https://www.osc.ca/en/news-events/news/osc-research-finds-ai-enhanced-scams-pose-significant-risk-investors
- GOVERNMENT OF CANADA | GET CYBER SAFE. How cyber criminals are using artificial intelligence (AI) for online threats – Get Cyber Safe. Government of Canada. Online. 18 November 2024. Available from: https://www.getcybersafe.gc.ca/en/blogs/cyber-criminals-are-using-artificial-intelligence-ai-online-threats
- GORMAN, Benjamin. AI scams: What are they and how can you avoid them? Norton. Online. 23 June 2025. Available from: https://us.norton.com/blog/ai/ai-scams
- VASYLCHUK, Patricia. The cost of fraud exceeds financial loss, victims say. Royal Canadian Mounted Police. Online. 13 March 2025. Available from: https://rcmp.ca/en/gazette/cost-fraud-exceeds-financial-loss-victims-say