Seven charged in scheme that used AI tools to defraud Toronto-area stores: police

TORONTO — Police say they have charged seven people in a fraud investigation after suspects allegedly used AI-enabled tools to target retail locations across the Greater Toronto Area.

Toronto police say five people have been arrested and two are still at large in a case that saw suspects use smart glasses, cellphones and distraction techniques to steal login information from store employees.

Police say the stolen credentials were then used to load funds onto gift cards using self-checkout kiosks.

The Toronto Police Service says its major fraud division began investigating in January after receiving a complaint from a national retailer’s corporate security arm.

Using surveillance footage, police say they identified 112 suspicious incidents connected to the monthslong scheme, which resulted in significant financial losses for the affected stores.

Police say two people are wanted on Canada-wide warrants and five people from Toronto have been charged with fraud, possession of property obtained by crime and using a computer system with intent to commit an offence.

This report by The Canadian Press was first published April 17, 2026.

Kathryn Mannie, The Canadian Press