Identity fraud accounts for the vast majority of fraudulent financial activities in Canada, new report suggests
Canada has seen an increase in fraudulent activities within the automotive, credit card, and mortgage sectors, according to the latest Fraud Trends Report by Equifax Canada.
Over the past year alone, fraudulent applications have spiked by 28% in the automotive sector, 37.9% in the credit card sector, and 18.8% in the mortgage sector, with identity fraud comprising 68.5% of all fraudulent applications in these segments during Q2 2023.
In the mortgage sector, in particular, first-party fraud represented 54% of all fraud types reported in Q2, up from 46.5% in Q1.
“Some home buyers hoping to enter a pricey real estate market are willing to fudge their salary numbers on an application,” said Carl Davies, head of fraud and identity at Equifax Canada.
“This isn’t just a ‘little white lie’— it’s fraud. It’s a serious crime. If interest rates remain high, this trend could easily accelerate in the months ahead.”
Daniela DeTommaso of FCT stated that conducting additional checks and identity verification with new clients were essential steps to mitigate and prevent further cases of fraud emerging in the mortgage space.https://t.co/4qwADgOkf0#mortgagenews #mortgagebrokers #mortgagefraud
— Canadian Mortgage Professional Magazine (@CMPmagazine) June 5, 2023
Nearly half of Canadians have been targeted by fraud recently
Data from TransUnion indicated that fraud attempts have been made upon approximately 49% of Canadians recently.
Digital fraud attempts went up by 40% on an annual basis during the first half of 2023. Across all industries, the suspected digital fraud rate was at 4.5% during the second quarter, up from 3.2% in Q2 2022 and markedly higher than the global digital fraud rate of 5.3%.
“As consumers and businesses continue to use digital transactions to engage in commerce, fraudsters are increasingly using them for their own benefit,” TransUnion said.
“Given the prevalence of fraudulent scams targeting Canadians, and the reality that fraudsters are ever more sophisticated and are constantly evolving to attempt to overcome digital security measures, it’s critical that Canadians take steps to protect themselves,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada.
