Be Aware of AI-Powered Fraud
In recognition of Fraud Prevention Month this March, the Financial Crimes Unit is reminding people that just because a caller knows information about you doesn’t mean they’re legitimate.
At a news conference held at police headquarters on March 11, Detective David Coffey said investigators are seeing an increase in fraud schemes powered by artificial intelligence (AI).
“Artificial intelligence (AI) is not creating entirely new scams, but it is making existing scams far more convincing,” he explained.
Coffey noted that the impact of AI in fraud investigations became evident last year.
“Criminals are now able to gather information faster, personalize their approach and impersonate trusted individuals or organizations, such as banks, government agencies and even the police, with far greater credibility,” he said. “Scammers use AI tools to quickly scan social media, online profiles and other public sources to tailor their scams with remarkable precision. Today’s scammers may know where you work, who your family members are and which bank you use. That information allows them to create a story that feels very real.”
In many cases, Coffey emphasized, victims are not responding to random messages.
“They are being contacted by someone who knows details about their lives,” he said. “That familiarity lowers suspicion and increases compliance. This represents a shift not in the scams themselves, but in how convincingly criminals can exploit trust. My message today is that fraud prevention is no longer only about protecting your information. It is about verifying identity.”
Coffey said that much of the information criminals use is readily available through past data breaches, phishing attempts, or publicly accessible sources.
“If someone contacts you urgently about money, personal information, or access to your accounts, pause and verify,” he said. “Do not rely on caller ID, voice recognition, or familiarity because all these can be manipulated. Contact the organization or person directly using trusted contact information you locate yourself.”
Last year, reported losses to Toronto Police alone from confidence scams totaled $50 million.
“When broader fraud categories that rely on impersonation and social engineering are included, the financial impact climbs into the hundreds of millions,” Coffey added. “These numbers illustrate the very real financial cost of criminals exploiting trust. What cannot be measured is the emotional harm and loss of trust these scams create.
“We also know fraud is significantly underreported. Many victims never come forward because of embarrassment or uncertainty, and the true scale of fraud is likely many times higher.”
Fraud Prevention Month is a national effort, including the Canadian Anti-Fraud Centre, jointly managed by the Royal Canadian Mounted Police, the Competition Bureau, and the Ontario Provincial Police. The Centre serves as the central hub for fraud reporting and trend identification in Canada.
