Toronto police say artificial intelligence is increasingly being used by scammers, making fraud schemes more convincing and far harder for victims to detect. Investigators with the Toronto Police Service’s financial crimes unit say the impact of AI driven scams began accelerating around the middle of 2025 and has rapidly grown since then.
Detective David Coffey, who leads the financial crimes unit, said police had been anticipating the arrival of AI powered scams for several years but only recently began seeing their widespread impact. Speaking to CP24.com, Coffey explained that while the basic types of scams have not changed, artificial intelligence has dramatically improved how fraudsters target victims and manipulate them psychologically.
According to Coffey, common scams still include romance fraud, impersonation schemes, and criminals posing as bank investigators or police officers. What has changed is how convincing these scams have become. AI tools now allow criminals to gather personal details quickly and tailor their approach to specific individuals. In many cases, scammers already know information such as a person’s email address, the last four digits of their bank card, or the names of family members before making contact.
Police say much of this information is readily available online or through past data breaches involving corporations. Coffey said it is unlikely that anyone has completely avoided having some of their personal information exposed through a breach at some point. Artificial intelligence tools can now gather and organize that data for criminals, giving them a detailed profile of potential victims.
The growing sophistication of scams comes as financial losses from fraud continue to increase. Toronto police received about 16,300 fraud reports in 2025, slightly fewer than the roughly 17,000 reported in 2024. However, the amount of money lost rose significantly. Victims in Toronto lost approximately $433 million in 2025, compared with about $370 million the previous year, representing a 17 per cent increase.
National figures also show a dramatic rise in fraud losses. According to the Canadian Anti Fraud Centre, victims reported about $165 million in losses in 2020. That figure climbed to $379 million in 2021 and reached approximately $650 million by 2024. Coffey said the true losses are likely much higher because only an estimated five to ten per cent of fraud incidents are ever reported to authorities.
Some of the most damaging schemes are long running scams such as romance fraud and investment scams. One tactic known as pig butchering begins as a romantic relationship before evolving into a fraudulent investment opportunity. Victims are often groomed over several months before being encouraged to invest money into fake online platforms that appear legitimate. In many cases, people end up losing hundreds of thousands of dollars.
Investigating these scams can be extremely difficult for police because the money is often quickly transferred through multiple countries or converted into cryptocurrency. Coffey said law enforcement agencies face significant challenges recovering stolen funds due to complex international legal processes required to track and retrieve the money.
Toronto police are urging the public to remain cautious and verify any suspicious requests for money. March is recognized as fraud prevention month, and investigators are encouraging people to talk to someone they trust if they receive a suspicious call or message. Coffey said scammers frequently rely on urgency and emotional pressure to make victims act quickly without thinking.
He noted that legitimate government agencies will not demand immediate payments or threaten consequences such as deportation or the suspension of licences during an unsolicited phone call. Police advise residents to hang up, look up official contact information independently, and call the organization directly if they are unsure.
Authorities are also warning about situations where victims are instructed to deposit money into cryptocurrency machines while still on the phone with scammers. Coffey said officers have seen cases where seniors are guided step by step through sending money at Bitcoin kiosks located in local convenience stores.
Public concern about AI driven fraud is growing. A recent survey released by TD Bank found that about three quarters of Canadians believe advancements in artificial intelligence make them more vulnerable to financial scams. The poll also found that more than 80 per cent of respondents think fraud schemes are becoming harder to detect.
Police say the most important defence is vigilance. Coffey stressed that people must question unexpected requests for money or personal information and verify the legitimacy of any communication before taking action.
