13 Per cent of Canadians Face Payment Fraud

Canadians facing fraud

According to a recent Payments Canada study, over 13% of Canadians have encountered payment fraud in the past six months, a similar rate to the 14% reported in 2023. This persistent issue has made Canadians wary of payment scams, affecting their payment behaviors and increasing caution when dealing with bills and financial communications.

Fraud and cyber security concerns have a significant impact on Canadians’ payment habits. More than half (54%) report that fraud risks influence their choices on how and where they transact. Nearly one in three Canadians (32%) struggle to discern legitimate payment-related communications from potential scams, and 22% fear missing bill payments due to concerns about fraud.

The top fraud types experienced include unauthorized bank or credit card transactions (38%), impersonation through various communication channels (34%), and stolen credit card information (18%). Young Canadians (18-34) are especially vulnerable to authorized push payment fraud, where victims are tricked into making payments or sharing personal information. This demographic, which frequently uses social media and electronic payment methods, faces higher risks compared to older age groups.

Canadians facing fraud

Among those who experienced fraud in the past six months, 59% reported financial losses, with 46% losing $500 or less and 13% losing over $500. Many (85%) reported these incidents to their financial institutions. Older Canadians (55+) were more likely to report cases where no money was taken but personal data was stolen, while young Canadians (18-34) were more likely to experience actual monetary loss.

To protect themselves, Canadians are taking several measures: 79% limit online information sharing, 70% shop only on trusted sites, and 51% prefer local, in-person transactions for online purchases. The adoption of two-step authentication has increased to 65% in 2024 from 50% in 2021. However, weaknesses remain, particularly in password management. The number of Canadians storing passwords insecurely (on smartphones, computers, or in notebooks) rose to 35%, with 19% using the same password across accounts. Young Canadians are particularly prone to these risky practices, with 41% storing passwords insecurely and 28% using identical passwords for multiple accounts. Additionally, 12% of young Canadians have shared personal and banking details via email or text.