Concerns about fraud are escalating among Canadians, with a new Equifax Canada survey revealing that 89% believe companies must do more to protect personal data. Seniors and Quebec residents are particularly worried, demanding stronger fraud prevention measures and broader fraud education.
Key findings
- 55% believe identity thieves will always be one step ahead, with 51% unsure of how to respond to fraud.
- Seniors 65-plus feel most at risk, with 96% agreeing that companies must improve fraud protections, compared to 75% of those 18-24.
- 94% of Quebec residents demanded action from companies on fraud prevention, while the 86% of Albertans was the lowest.
- 64% of recognize that financial fraud fuels serious crimes like human trafficking and illegal weapons trade.
- 58% struggle to keep up with the latest scams, leaving many feeling vulnerable.
- 48% know someone who has been a victim of identity theft.
“Fraud prevention is a major concern for many Canadians. Research shows that every dollar lost to a fraudster costs individuals and banks significantly more money. Companies must act now to strengthen fraud protection,” said Carl Davies, head of fraud and identity at Equifax Canada. “Canadians, especially older adults, are demanding better safeguards to prevent financial crimes and identity theft.”
The auto industry: Fraud hotspot
Auto fraud is a major concern with rates escalating in most provinces, particularly Ontario. According to recent Equifax Canada data, auto application fraud rate in Q4 2024 reached 0.26%, up by two bps from Q3 2024 and nine bps when compared to 24 months ago. Falsified documents and inflated income are key drivers of first-party fraud in this sector, making up close to 80% of all fraudulent applications.
Consumers new to credit and new to Canada had significantly higher auto fraud rates in 2024 than other consumers — more than double the fraud rate seen from consumers with more established credit files. Auto application fraud rates for those new to Canada or credit in 2024 was 0.51%, compared to existing consumers at 0.22%.
Mortgage fraud is down but falsified documents remain a challenge
Equifax Canada said the Canadian mortgage market continues to slowly rebound from its lows in 2023, demonstrating growth in Q4 2024 with increased new mortgage accounts. Mortgage fraud rates have decreased significantly year-over-year, from 0.46% in Q4 2023 to 0.19% in Q4 2024.
Despite this positive trend, falsified financial documents, such as bank statements and down payment information, remain a significant component of mortgage fraud at north of 90%.
“This decline in fraud rates might be temporary. As interest rates gradually decrease, a potential surge in first-time buyers in 2025 could lead to increased fraudulent activity in mortgage credit applications. Consumers may misrepresent their financial information in an attempt to secure the best possible rates,” Davies said.
A call for stronger corporate and government action
Canadian survey respondents believe financial institutions, businesses, and the government all have a role to play in strengthening fraud prevention measures:
- 88% believe that both the public and private sectors must work together to combat financial crime.
- 84% believe the government must improve public fraud education, with 91% of seniors (65-plus) strongly agreeing.
- 82% say companies that fail to protect customer data should face penalties.
- 77% recognize the need to take personal steps to safeguard their data, but many feel unprepared.
- 61% say banks should implement stronger security protocols.
- 59% believe companies should leverage more sophisticated fraud detection tools.