Credit Card Fraud Escalates As Fraud Continues to Be a Concern for Canadians

Core Insights - The Equifax Canada Market Pulse Fraud Trends and Insights Report indicates a significant rise in credit card fraud, despite a decrease in overall application fraud rates across Canada [2][3] Fraud Trends - Application fraud rates have decreased to 0.56% in Q2 2025, down from 0.70% in Q1 2025 and 0.57% a year prior, reflecting a cooling Canadian economy and stricter lending standards [3] - Credit card fraud rates have increased to 0.75% in Q2 2025, up from 0.44% a year earlier, despite a 1.4% drop in application volumes [3][4] Demographics and Impact - Fraudsters are now targeting a broader range of consumers, with a notable increase in credit card fraud among middle-aged Canadians, particularly in Ontario and Atlantic Canada [4] - Third-party fraud accounts for 83% of all fraudulent activity in the credit card sector, with true-identity fraud making up 78% of those cases [4] Other Fraud Types - First-party fraud has risen by 7% compared to the previous year, while third-party fraud outside the credit card sector has declined both quarterly and annually [5] - Auto fraud decreased to 0.23% from 0.26% a year ago, and banking and deposits fraud dropped from 1.09% to 0.70% [6] Mortgage Fraud - Mortgage fraud fell to 0.19% in Q2 2025, down from 0.29% a year earlier, but misrepresentation of financial circumstances remains a significant issue, particularly with falsified documents [7] Recommendations - The report emphasizes the need for stronger identity verification and cross-industry collaboration to combat the rising credit card fraud [5][8]