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AI and Investment Scams : What Every Canadian Should Know to Help Protect Seniors

In recognition of World Elder Abuse Awareness Day, June 15, 2025


Artificial intelligence is transforming nearly every part of our lives—including, unfortunately, the way scams are being carried out. This year, in recognition of World Elder Abuse Awareness Day, the Canadian Securities Administrators (CSA) is urging Canadians to have open conversations with the older adults in their lives about the increasing use of AI and social media in investment fraud.


Older Canadians continue to be a prime target for financial scams. The rise of AI tools has made it easier than ever for fraudsters to impersonate credible sources, manufacture trust, and fabricate entire digital identities in minutes. These tactics are creating a dangerous environment online, where investment scams are no longer obvious—they're engineered to look legitimate.


Why Seniors Are Being Targeted

Seniors are often targeted because they may:

  • Be more financially secure after years of saving or receiving pensions;

  • Be less familiar with emerging technologies and social media red flags;

  • Be more open to building online connections, particularly if they feel isolated;

  • Be reluctant to report suspicious behavior, especially if it involves embarrassment or emotional manipulation.


How These Scams Are Evolving

Today’s scams don’t always come with broken grammar and cartoonish promises. With AI, they’re polished, believable, and often emotionally manipulative.


Here’s what’s happening:

  • Fake ads are circulating on social media platforms, often impersonating public figures or reputable firms. The ads look professional and may include video or voice clips that have been AI-generated.

  • Fraudulent investment groups present themselves as exclusive or invite-only communities of experts, but quickly move discussions to private messaging apps like WhatsApp or Telegram—places that are harder to monitor or report.

  • Emotional manipulation plays a central role. Scammers may build a relationship first, through a dating app or online community, before introducing an “exclusive” opportunity.


What You Can Do to Help

If you’re concerned about a parent, grandparent, or older friend, here are some simple but effective ways to engage:

  • Talk about online scams. Bring up real-life examples and ask open-ended questions about what they’ve seen online.

  • Encourage skepticism. Investment opportunities that seem too good to be true usually are—especially those offering quick, guaranteed, or unusually high returns.

  • Check registrations together. Before investing, it’s essential to verify that an individual or firm is registered with a Canadian securities regulator. Visit AreTheyRegistered.ca.

  • Promote the idea of a Trusted Contact Person (TCP). Every investment firm in Canada asks for this— someone your advisor can speak to if there’s concern about financial exploitation or unusual activity.

  • Avoid secrecy. If someone online asks to move conversations off public platforms or discourages sharing the opportunity with family or friends, it’s a red flag.


It’s Not Just About Technology—It’s About Trust

AI is a tool, and like all tools, it can be used for good or bad. What makes these scams so dangerous is that they prey on trust—something built not just through flashy content, but through subtle emotional cues and gradual relationship-building. That’s why one of the most effective defences is ongoing dialogue. Encourage the seniors in your life to talk about what they’re seeing online, who they’re connecting with, and whether they’ve been approached with any investment “tips.”


Staying Informed

The CSA has developed a range of tools to help Canadians become more informed investors. They also regularly publish investor alerts and updates on scam activity. Following them on social media can help keep you up to date:


If Something Doesn’t Feel Right

If you or someone you know may have been approached by a suspected scammer or has lost money to an investment fraud, don’t wait. Contact your local securities regulator. Reporting these incidents can not only help prevent further losses but may also protect others.


Financial scams that target seniors are not new, but the tools criminals are using have evolved. AI and social media have changed the playing field. Our best defence is awareness, skepticism, and open communication—because protecting financial wellbeing is a shared responsibility.

 
 
 

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