In 2024, Canadian banks have experienced a significant decrease in reported fraud cases compared to the previous year. However, despite this decline, Canadian retail banking customers are still at risk of losing considerable amounts to fraud, potentially surpassing the $569 million lost in 2023, which was three times higher than the losses in 2021. This shift in fraud tactics indicates that fraudsters have adapted their strategies to target fewer individuals but with higher monetary gains per scam.
According to BioCatch, a global leader in digital fraud detection and financial crime prevention, the average value of fraud cases has increased due to the rise of social engineering scams, specifically impersonation scams, in Canada. These scams are known for their higher value compared to other fraud schemes, with more than 70% of losses originating from five-figure cases. This trend has significantly contributed to the overall scam-loss average in the country.
Furthermore, BioCatch’s 2024 Digital Banking Fraud Trends in Canada report reveals a shift in the demographic profile of fraud victims, with individuals between the ages of 20-49 now being the primary targets rather than the previously assumed older age group of 50-89. This disproves the common misconception that older individuals are easier and more lucrative targets for fraudsters.
The use of Artificial Intelligence (AI) has exacerbated the impact of fraud, allowing bad actors to scale and sophisticate their scams using techniques such as deepfakes. As the industry adopts new authentication methods for account opening and takeover processes, fraudsters are expected to target these vulnerabilities as well.
BioCatch’s research also uncovered that one in seven scam sessions in Canada exhibited signs of remote access trojans (RAT), including both active RAT (where fraudsters gain control of the session) and passive RAT (where victims are guided through the payment process). These findings highlight the various tactics employed by fraudsters to exploit individuals and financial institutions.
For more detailed insights, individuals can access BioCatch’s complete 2024 Digital Banking Fraud Trends in Canada report by visiting their website. Additionally, BioCatch experts, Tom Peacock and Seth Ruden, will be hosting a live discussion on November 14 to delve deeper into the growth of social engineering scams in Canada and other emerging fraud trends in the country.
BioCatch takes pride in leading the charge in digital fraud detection by leveraging behavioral biometric intelligence backed by advanced cognitive science and machine learning. Their innovative approach has enabled 32 of the world’s largest 100 banks and a total of 210 financial institutions to combat fraud effectively and foster trust in digital transactions. With a focus on creativity and collaboration, including partnerships with industry giants like American Express and HSBC, BioCatch continues to drive innovation and address future challenges in fraud prevention.
For more information about BioCatch and their industry-leading solutions, individuals can visit their website at www.biocatch.com.