In the face of persistent threats from payment fraud, over one in ten Canadians have experienced such incidents in the last six months, maintaining a consistent trend year-on-year (13% in 2024 versus 14% in 2023), as per the latest report by Payments Canada.
The spectre of fraud and cybersecurity issues is shaping how Canadians manage their financial transactions, with a notable 54% of the population altering their behaviour due to these concerns.
The study reveals that nearly a third of Canadians (32%) find it challenging to distinguish between legitimate payment-related communications and potential scams, particularly those received via email or phone. This uncertainty has led over 22% of the populace to potentially miss bill payments, as they hesitate to respond to these communications for fear of being scammed.
Fraud types such as unauthorized transactions, which appear on bank or credit card statements, impersonator scams, and stolen credit card information lead as the most common fraud experiences, affecting 38%, 34%, and 18% of those impacted, respectively. Young Canadians, particularly those aged between 18-34, are more susceptible to ‘authorized push payment fraud’ – scams where victims are conned into willingly transferring money under false pretenses. This age group’s higher engagement with social media platforms and diverse electronic payment methods exposes them more to these fraud types.
Interestingly, while younger Canadians are more likely to report money losses, older Canadians (55+) frequently report no financial loss but do experience theft of personal or financial data. The report also notes that 59% of fraud victims encountered monetary losses, with 46% losing $500 or less.
To counteract these threats, the majority of Canadians are taking proactive steps such as limiting the sharing of personal information online and shopping only on trusted sites. The adoption of two-step authentication has seen a significant rise, from 50% in 2021 to 65% in 2024, illustrating a growing awareness and implementation of security measures.
However, gaps in cybersecurity practices remain, notably in password management. A concerning number of Canadians, particularly younger ones, still store passwords on easily accessible digital devices and frequently reuse them across different accounts, which can increase their vulnerability to cyberattacks.
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