Experts warn of rising fraud risk with AI adoption

Canada is investing over $2 million to help small and medium-sized businesses integrate AI. John Vennavally-Rao on the vision behind the initiative.

The first-ever Toronto Tech Week is nearing its end, wrapping up Friday after a packed week of events aimed at positioning Canada’s largest city as a global leader in technology and artificial intelligence.

Since Monday, hundreds of events have taken place across the city, drawing investors, innovators, and policymakers. Among them is Evan Solomon, Canada’s newly appointed minister of artificial intelligence, who on Thursday announced $2.4 million in federal funding to help more small- and medium-sized businesses adopt AI technologies.

The funding will go to the Toronto Region Board of Trade to implement a new mentorship and training initiative for up to 75 businesses across the region.

“AI is not just a tool. It’s a revolution,” Solomon said during a speech in downtown Toronto. “We are in a Gutenberg moment here,” referring to the 15th century German inventor who invented the printing press.

The goal, he said, is to accelerate AI adoption among smaller firms — those with fewer than 500 employees — that may lack the resources and expertise to take advantage of emerging tools.

“In essence, it’s about the economy of the future,” said Solomon. “And it’s making sure that small- and medium-sized businesses get access, mentorship and training in how to use AI in a responsible and productive way.”

While larger companies — including Canada’s major banks — are already seeing productivity gains from artificial intelligence, Solomon says uptake among smaller businesses has been slower. According to John Warren, vice-president of the World Trade Centre Toronto, 69 per cent of respondents surveyed said they have yet to identify a clear business case for AI.

“ChatGPT alone has over 200 million average daily users. And that is just reflecting a small portion of AI’s potential,” said Warren. “So the question for business leaders isn’t if it matters — it’s how can I get started.”

The push for broader AI adoption comes amid fresh warnings from federal agencies about the darker side of the technology.

The Canadian Anti-Fraud Centre and the Canadian Centre for Cyber Security issued a joint alert this week about scammers using AI-generated text and cloned voice messages to impersonate prominent public figures and senior government officials.

In one instance, a fraudulent message on the encrypted Signal platform appeared to come from a U.S. official and requested a large money transfer under the guise of a tariff-related emergency. Business leaders and senior public officials were among those targeted

“I think we’re still at the beginning of AI here,” said Jeffrey Horncastle with the Canadian Anti-Fraud Centre. “It’s getting harder and harder to detect, and you want to be taking every measure you can to avoid being a victim.”

Horncastle warned that Canadians should not trust caller ID alone, as phone numbers can easily be spoofed.

“Voice cloning is out there. And we anticipate it’s going to be used more and more for targeted attacks,” he said.

Experts urge Canadians to be skeptical of urgent calls or messages, especially those requesting sensitive information or money. They recommend verifying identities independently before taking action.

The Anti-Fraud Centre is encouraging anyone targeted by AI-based scams to report the incidents.