Report calls for greater education to help Canadians protect themselves
We all know the devasting impact that identity theft can cause including significant financial issues, but how is artificial intelligence changing the level of risk?
According to a new report from Toronto-based identity verification firm Okta, concern among Canadian consumers is high with 75% fearing that their identity will be stolen or misused due to the evolving capabilities of AI.
But despite the potential for scammers to use the technology to access investment and banking accounts, or to access personal data to secure fraudulent credit, just one in five respondents to the survey said they are confident in recognizing AI-generated attempts to steal their personal data.
“As Canadians grapple with a surge of phone and email scams, with perpetrators often posing as banks or credit card companies, the rise of generative AI adds another layer of complexity,” said Dan Kagan, SVP and Country Manager at Okta Canada. “With AI, cybercriminals create convincing deepfakes, clone voices, and automate personalized texts - so distinguishing between genuine and synthetic content is increasingly challenging. Addressing this requires a concerted effort from the private sector and government to provide robust education. Unfortunately, many Canadians are currently underserved in this regard.”
Identity theft is not a niche issue with more than one third of poll participants having been affected directly or knowing someone who has. Despite this, less than one quarter have taken steps to educate themselves about the risk and how to protect themselves – this creates an opportunity for advisors and financial institutions to lead in this regard.
A recent report from Equifax Canada revealed that the banking sector saw the largest share of identity fraud incidents in the fourth quarter of 2023 and were the cause of 73.5% of fraudulent credit card applications and more than 89% of all deposit frauds.
Business risk
Businesses are vulnerable from the AI threat too with the Okta research revealing a laissez-faire approach to their work security.
While 30% of respondents believe their personal data is at the greatest risk of AI-related threats, with a similar share concerned about their social media accounts, just 5% see their work credentials and email.
The report also notes prolific use of the same passwords for work and personal accounts, which further raises the risk of sophisticated cyberattacks on organizations.
Multi-factor authentication has created a line of defence that improves on simply using passwords, but Okta says that going passwordless is the key to better protection. Passwordless solutions include one-time passwords, registered smartphones, and biometrics such as fingerprints and retina scans.
“Canadians require access to robust identity tools, comprehensive education on recognizing and responding to cyber threats, and proactive measures to safeguard their personal information,” emphasized Kagan. “By adopting passwordless authentication, organizations can effectively manage a range of security risks while enhancing the customer experience, ultimately safeguarding the personal information of Canadians.”
