Financial Fraud and Scams

We would like to take the opportunity to remind everyone to stay vigilant and take time to reflect on suspicious phone calls or e-mails prior to taking any action. If you are being contacted by an unknown person at a financial institution, who is requesting information, we would suggest calling the institution back at a phone number that is listed on the back side of your client card or credit card. By placing the call yourself, to a phone number that is known to be correct, you can be confident knowing you are talking to the right people. Please visit this link for a Financial Fraud and Scam Guide which outlines what to do if you’re a victim of a scam or financial fraud. As an added layer of protection, we may inquire with you on what requested cash is needed for.

With the evolution of Artificial Intelligence, fraudsters are able to create very convincing content. There has been an uptick in investment scams circling and we’ve fielded several questions from clients in the last couple of months. Below we have provided some additional information on Deepfake Investment Scams.

1. Details of the scams:

Scammers are using the recent tariffs and concerns regarding rising cost of living to trick Canadians into investing in fake investment opportunities. The deepfake investment scam is an AI-generated video that mimics legitimate organizations and uses the likeness and voice of a well-known political figure to promote an offer or partnership with an organization or business promising high returns on investment. These videos are often circulated on social media platforms and websites.

RBC has recently become aware of a deepfake investment ad impersonating a high-profile political figure promoting a non-existent program claiming to be supported by and backed by RBC. The ad promises high rates of return encouraging individuals to sign-up online by filling out their information and sending money to get started.

Be wary of investment scams – fraudulent deepfake ads will promote an opportunity to invest or make money, and will often utilize well-known political figures, CEO of large companies, actors, singers, or influencers to spread misinformation to ultimately obtain your funds.

2. Red flags to look out for:

• Too good to be true offers and promises of quick, high rates of return on investment
• Deepfake videos may exhibit unnatural facial movements, blurry or warped facial features
• The audio may include lip-syncing issues, unnatural intonations, robot-sounding voice or feature a voiceover
• Low resolution or pixelated videos are often used as an attempt to hide AI imperfections

3. What should you do?

• Research and fact-check any opportunity with verified sources
• Guard your personal information. Do not share sensitive personal or banking information to unsecure websites. Legitimate platforms will not ask for unnecessary information
• When possible, report the ad to the platform or website where it is hosted – use the ‘report this’ button if available.

For a list of recent scams that RBC has flagged please visit the link here at RBC Scam Alerts.

Market Update

Despite summer typically being quieter, the headline-filled nature of 2025 has yet to show signs of slowing. A few notable developments have taken place recently, including the signing of a key piece of U.S. legislation and new tariff rates being proposed. We discuss below.

Recent tariffs and the “One Big Beautiful Bill" developments

After some political maneuvering by the Trump administration, the House of Representatives passed the Senate's altered version of the "BBB" which was subsequently signed into law by the President. In a nutshell, the Bill includes: an extension of Trump's 2017 tax cuts, a temporary end of taxes on overtime work and tips, the cutting of Medicaid and food stamp funding, higher defense and border expenditures, and a roll-back of many clean-energy initiatives. The legislation has become a hot-button political topic with some arguing this will stimulate growth and others voicing concern over the impact to social safety nets and renewable energy. Politicians from both sides of the isle have expressed concerns surrounding the Bill's impact on the federal budget deficit. The nonpartisan Congressional Budget Office projects that the Bill will add around US$3.4 trillion to the fiscal deficit over the next decade.

On the tariff front, there has been a frenzy of "letters" sent by the U.S. to many major trading partners and the deadline previously slated for July 9th has been extended to August 1st. President Trump says there will be no more extensions, but the administration has shown a reluctance to follow through on policies that have generated adverse reactions in bond and equity markets. The new rates announced, so far, have largely tracked those announced in early April. There have also been new tariff threats: an additional 10% tariff against the “BRIC” emerging markets over allegations the group is attempting to weaken the U.S. dollar, a 50% tariff on copper imports, and the teasing of the potential for elevated duties on semiconductors and pharmaceuticals.

What about Canada?

Canada stands at an interesting juncture. The country was a surprising early target in the tariff war, but the U.S. backed off to some extent for a while, or at least shifted priorities to other countries. Talks between Canada and the U.S. have resumed after some brief tensions over Canada’s digital services tax, which Canada subsequently removed, and a deadline of July 21st had been set for the countries to come to some sort of deal. Regardless, Canada was also a “letter” recipient, with a 35% blanket tariff rate now being threatened with that appearing to be a new deadline of August 1st for negotiations. It remains unclear how this will differ from the current state given exemptions for USMCA-compliant goods from broader levies have largely insulated Canadian exports. However, some pockets of the economy are still being greatly affected, particularly those directly impacted by sector-specific duties on metals and vehicles. We will be watching these developments and the new proposed copper duties closely, given the U.S. is the top recipient of Canadian copper exports.

Muted market reaction

Investors may have expected the re-emergence of "Liberation Day" tariff levels and an amalgamation of sector-specific tariffs to lead to a similar market reaction as we saw back in April. Back then, equity market volatility rose sharply. But that has not been the case this time around. Markets have been more resilient in the wake of these significant announcements, likely because they have been through this before and may be questioning the U.S. administration’s ability and willingness to follow through. There is also some confidence that the economic and earnings trajectory has not been unduly impacted by the uncertainty created earlier this year by the tariff threats.

We remain cognizant of downside risks given stock markets are sitting close to highs, leaving them vulnerable to a negative shock or disappointment. Nevertheless, markets may remain resilient until there are more concrete signs that the uncertainty, threats, or tariffs themselves are having some sort of tangible impact on inflation, economic growth, and potentially future corporate earnings. As of now, this hasn't been the case.

We wish everyone an enjoyable summer and please reach out to us if you have any questions or concerns.