In 2024, Canadian banks have reported a significant drop in the number of fraud cases, with only 34% of the instances recorded in the previous year. However, retail banking customers in Canada are on track to lose as much as, or even more than, the $569 million lost to fraud in 2023, which was three times higher than the losses reported in 2021. These findings, presented by BioCatch, the global leader in digital fraud detection and financial crime prevention, indicate a troubling trend: fraudsters are adjusting their tactics to target fewer individuals while extracting more money per scam.
Tom Peacock, Director of Global Fraud Intelligence at BioCatch, stated, “While fraud volumes have decreased significantly over the last year, we’re observing an increase in the average value of these cases.” He attributed much of this shift to the rise in social engineering scams in Canada, particularly impersonation scams, which tend to yield higher returns than other types of fraud. Peacock noted that over 70% of losses from impersonation scams in Canada are linked to cases involving five-figure amounts, significantly inflating the national average for scam-related losses.
BioCatch’s newly released 2024 Digital Banking Fraud Trends in Canada report also reveals a shift in the demographics of fraud victims. The data shows that most Canadian fraud victims are now aged between 20 and 49, challenging the prevalent stereotype that older individuals are easier and more lucrative targets for fraudsters. This generational shift highlights the evolving landscape of fraud and the need for increased awareness among younger Canadians.
“Artificial Intelligence is supercharging fraud,” warned Seth Ruden, Global Advisory Director at BioCatch. He explained that the use of AI allows criminals to enhance the sophistication of their scams, utilising techniques such as deepfakes to mislead victims. As financial institutions implement advanced authentication measures for account openings and takeovers, fraudsters are likely to adapt their tactics to exploit these vulnerabilities.
Additionally, BioCatch discovered that one in seven scam sessions in Canada displayed signs of remote access trojans (RAT). This includes both active RATs, where the fraudster deceives the victim into granting control of their session, and passive RATs, where the fraudster guides the victim through the payment process.
BioCatch encourages individuals and businesses to remain vigilant as the nature of fraud continues to evolve. The report serves as a timely reminder of the importance of safeguarding personal and financial information in an increasingly complex digital landscape.
For further insights, readers can access BioCatch’s complete 2024 Digital Banking Fraud Trends in Canada report. Additionally, BioCatch’s fraud prevention experts, Tom Peacock and Seth Ruden, will host a live discussion on November 14, focusing on the growth of social engineering scams in Canada and other emerging fraud trends.
As Canadian consumers navigate the challenges of modern banking, awareness and education will be crucial in combatting the rising tide of sophisticated fraud attempts.
