B.C. Securities Commission issues alert over fake news ring targeting junior-listed companies
An international network of AI-generated fake news sites is promoting at least four B.C. public companies to investors with claims of 1,000% returns. The BCSEC warns investors may be misled.
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B.C. Securities Commission has issued an investor alert after identifying an international network of fake news websites targeting at least four B.C. public companies listed on Canada's junior exchanges.
The operation uses websites disguised as news outlets and populated with AI-generated articles presented in journalistic format to make it difficult for investors to distinguish promotional content from legitimate news. The sites make misleading claims, including promises of returns as high as 1,000 percent, and reach investors through ads on Google search results.
Director of Enforcement Doug Muir said the BCSEC released the alert because "we were concerned about the articles we are seeing on these websites and there seems to be some concerted effort that's addressing B.C. companies." He added: "We are worried that investors may be misled by these articles that are pretending to be journalistic articles, but are not. We are also worried they may be part of a pump-and-dump scheme."
The targeted companies are Bighorn Metals Corp. (CSE:HRNY), Clara Technologies Corp. (CSE:CLTE), Leviathan Metals Corp. (TSXV:LVX), and Noveris Health Sciences Inc. (CSE:NVRS). On September 28, Bighorn issued a news release stating that at least two articles bearing the copyright notice of Advertising Services Worldwide Ltd. made statements inconsistent with the company's public disclosure and "may mislead investors." Noveris, whose trading was halted on March 25 due to unexplained and unusual fluctuations in its share volume and price, issued a statement saying it "has not authorized, commissioned, or otherwise been involved in the creation or distribution of an article" that appeared on TheTimesFinancial.com.
Google Ads Transparency Center records show the advertisers are registered in offshore jurisdictions: Advertising Services Worldwide Inc. in the British Virgin Islands, Island Marketing Limited in the Cayman Islands, Galerna Logistics Transport Corporation in Panama, and Oxbridge Media s.r.o. in Slovakia.
How many other investors have lost money to these fake news sites?
Has Google taken action against the registered advertisers on its platform?
We'll update this story as answers emerge.
The facts
How many B.C. public companies are targeted by this fake news network?
At least four B.C. public companies listed on Canada's junior exchanges are targeted: Bighorn Metals Corp., Clara Technologies Corp., Leviathan Metals Corp., and Noveris Health Sciences Inc.
What false promises do these fake news sites make?
The fake news websites make misleading claims including promises of returns as high as 1,000 percent.
How do these fake news sites disguise themselves?
The sites are disguised as legitimate news outlets and populated with AI-generated articles presented in journalistic format to make it difficult for investors to distinguish promotional content from real news.
Where are the advertisers behind this operation registered?
The advertisers are registered in offshore jurisdictions: Advertising Services Worldwide Inc. in the British Virgin Islands, Island Marketing Limited in the Cayman Islands, Galerna Logistics Transport Corporation in Panama, and Oxbridge Media s.r.o. in Slovakia.
