Canadian Business Leaders Say Fraud Cost Their Businesses 7.2% of Equivalent Revenues; Synthetic Identity Fraud Losses Surge

Core Insights - TransUnion's study indicates that Canadian businesses lost an estimated CAD$111 billion to fraud in the past year, representing 7.2% of their revenues, a significant increase from CAD$78 billion in 2024 [3][6] - Synthetic identity fraud has risen to 26% of total fraud losses, up from 18% in 2024, marking the largest year-over-year increase among fraud types in Canada [7][6] - Despite an overall decline in suspected digital fraud rates, online communities and gambling transactions have seen significant increases in fraud attempts, with online communities experiencing a 68% year-over-year increase [8][9] Fraud Losses and Trends - Scams and authorized fraud account for 29% of reported losses among Canadian businesses, while synthetic identity fraud is becoming increasingly prevalent [5][6] - The rate of suspected digital fraud attempts in Canada decreased from 5.4% in H1 2024 to 4.2% in H1 2025, although this rate remains higher than the global average [3][6] - Online communities had the highest suspected digital fraud attempt rate at 11.4%, followed closely by gambling at 10.9% [10][8] Business Leaders' Concerns - 48% of Canadian business leaders reported that their customers were victims of fraudsters spoofing their business' phone number or name, while 60% cited fake emails impersonating their brand [3][6] - There is a significant concern regarding spoofing scams, indicating a need for enhanced security measures [3][4] Fraud Mitigation Strategies - Canadian businesses are focusing on various technologies to combat fraud, including identity verification (53%), device reputation (46%), and behavioral biometrics (42%) [11][8] - The study emphasizes the importance of a collaborative approach and advanced tools to stay ahead of evolving fraud tactics [8][4] Consumer Awareness and Actions - A separate survey found that 46% of Canadians were targeted by fraud attempts, yet only 6% reported falling victim, indicating high awareness [12][13] - Despite this awareness, 37% of Canadians took no action in the last 60 days due to cybersecurity concerns, with many unsure of what steps to take [12][13]