Toronto (Rajeev Sharma) — The Toronto Police Service has issued a dire warning to the public following a staggering 17 per cent increase in financial losses to fraud, which reached $433 million in 2025. Despite a slight dip in the total number of reported cases, investigators say the emergence of sophisticated Artificial Intelligence (AI) tools has made individual scams far more effective and devastating. Det. David Coffey, head of the Financial Crimes Unit, noted that while scams have been a persistent issue, the integration of AI in mid-2025 caused the threat to “take off like a rocket.”
The primary concern for authorities is how AI has lowered the “entry point” for criminals, allowing them to automate the collection of personal data from social media and corporate breaches. Scammers now frequently approach victims armed with specific details, such as the last four digits of bank cards, private email addresses, and the names of relatives. This high level of personalization is used to build immediate trust in romance scams, impersonation frauds, and “pig butchering” schemes—a predatory hybrid that grooms victims through a fake romance before draining their life savings through fraudulent investment platforms.
“It destroys lives,” Det. Coffey warned, noting that the emotional toll has led to broken marriages, suicides, and even homicides. The psychological brilliance of these modern fraudsters lies in their ability to trigger a “fight or flight” response in victims, using manufactured urgency—such as threats of immediate deportation or cancelled university tuition—to prevent them from thinking clearly. Once a victim is emotionally hooked, scammers often keep them on the phone for hours to prevent them from verifying the story with a friend or family member.
As March marks Fraud Prevention Month, the Toronto Police are urging a “Verify, Verify, Verify” approach. Experts suggest that any unsolicited call or message that creates immediate fear or urgency should be treated as a massive red flag. A recent TD Bank poll reflects this growing anxiety, with 82 per cent of Canadians stating that scams are becoming significantly harder to detect due to AI advancements. Police advise that if you receive a suspicious call from a purported government agency or bank, you should hang up immediately, find the official number independently, and call back to verify the claim.
