Magnetic forces alone are not capable of doing work, so they cannot generate heat in an object. To see this, consider the force on a charge $q$ moving with velocity $\mathbf{v}$,
$$\mathbf{F} = q \mathbf{v} \times \mathbf{B}.$$
From the definition of work,
$$W = \mathbf{F} \cdot \mathbf{v} = \left(q \mathbf{v} \times \mathbf{B}\right) \cdot \mathbf{v} = q \left(\mathbf{v} \times \mathbf{v}\right) \cdot \mathbf{B} = 0.$$
Thus, there is no way to extract energy from a static magnetic field and heating is impossible.
However, a changing magnetic field induces an electric field by Faraday's Law. In a conductive material this results in oscillating currents, which generate heat. This is how induction heating works.