'You ask for your money, they disappear': Ontario man loses $17K to AI crypto scam

How fake crypto ads are misleading investors Gurdip Sabharwal says he lost $17,000 after he was convinced to download remote software to invest in cryptocurrencies.

A Toronto man is spreading the word of a cryptocurrency scam that lures victims using AI-generated news sites after he lost $17,000 in investments.

Gurdip Sabharwal told CTV News Toronto that he was convinced to invest using remote software after reading an online article that appeared to feature a positive review from a prominent Canadian business reporter. In the story, she said that she was making a lot of money, which led him to invest, he said.

“I thought if she can do it, so can I,” said Sabharwal.

After contacting the same trading platform named in the story, he said that he immediately started to see huge returns.

“I invested $2,000 and within a very short while it started going up,” he said. “I just traded one company and I ended up with $26,000.”

However, the story he had read was fake and created by criminals.

Sabharwal said that when he downloaded a remote access software the trading company advised him to, money started to disappear from his bank account.

"With AnyDesk you have to invite them and once you invite them they come and take over the account,” Sabharwal said, adding “I had three e-transfers taken from my account. It was $3,000, $3,000 and another $3,000. It was $9,000 gone."

In the end, Sabharwal was scammed out of $17,000.

This is just one of the concerns highlighted by cybersecurity experts, who say that criminals have begun creating fake ads and news stories using AI to lure investors.

According to the Canadian Anti-Fraud centre, Canadians lost almost $310 million to investment scams in 2023, with much of the fraud involving people investing in cryptocurrency platforms they found online linked to fake news stories or advertisements.

“AI is accelerating the speed in which people are being fooled,” Claudio Popa, cybersecurity expert and president of Datarisk Canada said.

She said that you need to be skeptical if you see celebrities promoting cryptocurrencies as the stories or ads are mostly likely fraudulent.

In addition, Popa said that allowing remote access software on your computer means someone can control your computer from thousands of kilometres away meaning you could be giving scammers complete access to all of your accounts.

“AnyDesk is remote control software that takes control of your computer completely as if the criminal was sitting in front of it,” Popa said about the software Sabharwal downloaded.

Sabharwal – who is just one of the many Canadians affected by cryptocurrency scams -- had been holding out hope he could recover his funds but now realizes the money is likely gone for good.

“It might look like your investments are going up but as soon as you want to withdraw your money and take your returns they just disappear," Sabharwal said.